The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
Cryptocurrency is an increasingly popular payment method among today's shoppers. While common currencies like Bitcoin and Ethereum have gained traction in recent years, there are almost 10,000 different types of cryptocurrencies currently on the market, including PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin.1
These innovative forms of payment continue to attract shoppers because of their potentially fast and cost-effective transactions. Globally, an estimated 1 billion people use cryptocurrencies, with an average of 378,000 transactions made daily using Bitcoin alone between January 29 and March 18, 2024.2 Today, the total market capitalization of all cryptocurrencies is approximately $2.41 trillion.2
For small businesses, accepting popular types of crypto, like Bitcoin, can potentially open a whole new customer base and help increase sales. But first, it's important to have a strong understanding of what crypto is, how it works, and how to potentially start receiving Bitcoins for your business.
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.
Ready to accept crypto for your small business? Take these steps to get started.
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.
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.
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.
There are many potential benefits of accepting crypto, including:
Learn how to accept cryptocurrency payments with PayPal.
Accepting cryptocurrency may come with certain risks, including:
Wondering how to get paid in Bitcoin or other cryptocurrencies? Follow these steps to start accepting Bitcoin payments as a small business:
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.
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