Thinking of Accepting Crypto Payments? Check Out These Tools

Cryptocurrencies have become part of the mainstream news in 2021, regularly making headlines due to Bitcoin’s soaring prices and a growing appetite for niche assets and non-fungible tokens. As a result, the number of crypto users is spiking, having doubled to over 220 million people in just four months of 2021. In context, that’s the same size as the population of Pakistan, the world’s fifth-biggest. 

As a result of this more widespread user acceptance, many merchants and payment services are now beginning to integrate cryptocurrencies. It’s not even just limited to big names like PayPal and Microsoft – a 2020 survey found that over one-third of small and medium-sized US businesses accepted cryptocurrency. Of those, nearly two-thirds had also bought or held cryptocurrencies. The ability to offset risk using stablecoins also makes using crypto a more attractive proposition. 

However, accepting crypto can be either a daunting prospect or just another task on a never-ending to-do list for many business owners. But in 2021, there are plenty of tools and services that can help your business expand into crypto payments. 

Payment Processing Gateways

The first requirement is the ability to accept payment in crypto. Exchange behemoth Coinbase Commerce is perhaps one of the biggest and best-known solutions for e-commerce. It works in a similar way to many other merchant payment providers, requiring you to set up an account to offer customers a streamlined checkout. Customers who already use Coinbase’s infrastructure will find it even easier to pay using the platform’s software wallet. 

However, Coinbase’s platform has some drawbacks. The fee is 1%, which isn’t the most competitive on the market, and its appeal is relatively limited to merchants who want to use it for e-commerce and invoicing. Furthermore, the plans are limited to a self-custody option with an immediate start or a Coinbase-managed option with an application process that can take several weeks. 

One tip for finding a provider is to seek out those trusted by crypto-native firms. Request Finance is trusted by over 800 businesses, including many leading decentralized finance players such as lending giant Aave and MakerDAO, the issuer of the DAI stablecoin. It doesn’t require any monthly signup, and charges a flat fee of just 0.1% per transaction, capped at $2. 

It caters to all kinds of organizations, large and small, with a more comprehensive range of services than its bigger competitors. For instance, it can support cryptocurrency payrolls and expense management for SMEs managing teams. However, it’s also suitable for the growing base of freelancers who want to deal with crypto, allowing them to issue an invoice in local currency and get paid in crypto.  

Under the hood, Request is based on blockchain technology, enabling peer-to-peer transfers without needing to trust or wait for an intermediary. It stores each step of the payment process on the blockchain, enabling a reputation scoring system for users. 

Crypto Tax Solutions

Request also integrates with accounting software such as QuickBooks or Xero. However, if you’re also looking for crypto accounting software that can support taxes, then there are plenty of tools available from large and small providers. 

For example, Big 4 tax firm EY offers a blockchain-based Tax Calculator service, launched in 2020 and expanded earlier this year. It imports crypto transactions from multiple blockchains and exchanges, automatically calculating capital gains and losses. It will also generate the IRS Form 8949 for crypto-based assets. 

A smaller provider with more flexibility, Koinly offers an alternative option. There are four plans based on the number of transactions, and the platform can support tax reporting in over twenty countries whether you self-file, use tax software, or work with an accountant. It integrates with over 400 wallets and exchanges and 50 blockchains.

Cryptocurrency isn’t going anywhere, and being able to deal with digital currencies will soon be a matter of competitive edge. But using the right tools can smooth the path to crypto adoption for any business.