How to accept Bitcoin payments and other cryptocurrency as a small business

What is crypto?

Crypto, short for cryptocurrency, is a form of currency that exists only in the digital space and is transmitted from one computer to another. It uses cryptography – encoded information – to validate and secure transactions. Each transaction is recorded in a digital ledger known as a blockchain.

Learn more about crypto with our cryptocurrency vocabulary glossary.

How to accept crypto as a business

Ready to accept crypto for your small business? Take these steps to get started.

Review cryptocurrency regulations in your area

Cryptocurrency regulations are constantly changing. While some cryptocurrency was created to be unregulated and decentralized — without any overseers or intermediaries — governments around the world are considering ways to monitor and manage it.

In the U.S., cryptocurrency regulations can vary by state,³ so be sure to research any state regulations that may impact how you accept payments and consider seeking legal advice to help determine the right steps for compliance with cryptocurrency regulation.

Set up a crypto wallet or gateway

There are two common ways to accept crypto as a merchant: through a crypto wallet or gateway.

You can use a crypto wallet to accept directly from a customer's crypto wallet. However, the funds will remain in cryptocurrency form until you transfer them to a crypto exchange. You may be able to use crypto processors or gateways to accept payments and exchange them for U.S. dollars on the same platform.

Cryptocurrency processors often come with fees, but they can also provide certain conveniences and protections for businesses getting started with crypto.

Include cryptocurrency in your checkout process

Now it's time to incorporate cryptocurrency as a option in your checkout process and at your point of sale. Some payment processors like PayPal have crypto built into their checkout solution, so accepting crypto from customers can be simple. PayPal even converts the cryptocurrency to fiat currency, like traditional US dollars, to pay the merchant.

You can also work with your e-commerce platform to download a specific plug-in for accepting crypto. If you're using a crypto wallet, you may be able to hardcode this checkout option into your site.

Explore FAQs and references to learn more about accepting crypto for your business.

Potential pros of accepting crypto

There are many potential benefits of accepting crypto, including:

• New customers. Cryptocurrency payments are projected to increase by a 17% compound annual growth rate from 2023 to 2030.⁴
• International. Cryptocurrencies are borderless since they're simply transferred from account to account.
• Fast processing. Cryptocurrency can be transferred quickly locally and internationally. They just need to be digitally recorded in the blockchain.

Learn how to accept cryptocurrency payments with PayPal.

Cons of accepting crypto

Accepting cryptocurrency may come with certain risks, including:

• Changing regulations: As a relatively new and innovative form of, cryptocurrencies are subject to changing regulations. It can be tough for businesses to stay on top of new rules, tools, and even forms of crypto in the market.
• Value volatility: Like stocks, the price of cryptocurrency is constantly fluctuating based on demand. This can affect how much businesses earn from each transaction, especially if they immediately exchange their crypto for traditional dollars.
• Technical complexity: Merchants may have to get set up with new technologies like crypto wallets or gateways to start accepting crypto.

How to accept Bitcoin payments

Wondering how to get paid in Bitcoin or other cryptocurrencies? Follow these steps to start accepting Bitcoin payments as a small business:

1. Choose a Bitcoin payment processor. Payment processors that facilitate crypto payments can typically handle everything from the initial transaction to converting Bitcoin into your local currency, minimizing the complexity on your part.
2. Set up your cryptocurrency wallet. You need a digital wallet to store the Bitcoin you receive. Your payment processor will typically offer wallet services, but you can also choose to set up your own digital wallet as well.
3. Integrate Bitcoin payments into your point-of-sale (POS) system. Your chosen payment processor will likely offer tools and plugins to help you integrate Bitcoin payments into your existing POS system for both online and in-store transactions.

Note that some payment processors, like PayPal, may directly convert cryptocurrencies into USD, meaning you won’t receive Bitcoin directly, but the equivalent amount in USD.

Discover the many ways to accept payments with PayPal.