How to Accept Crypto on Your Shopify Store

Cryptocurrency has been on the rise for the past few years, and that trend is only going to get stronger. What started as a complete fringe form of currency is now one of the most accepted. In today’s age, consumers can use their cryptocurrencies in all sorts of establishments. They can even pay mortgages and book trips using Bitcoin and other cryptos.

The world of e-commerce is no different. Crypto is now becoming widely adopted as a viable form of payment for online stores.

One of the leading forces in this shift is Shopify. The platform allows its users to enable alternative payment providers to accept crypto.

So if you want to learn how to accept crypto on your Shopify store, you’re in the right place. Along the way, we’ll also explore the benefits of enabling crypto as a method of payment.

What is Cryptocurrency Anyway?

While crypto is becoming more widely accepted, it’s still in its infancy. In fact, many users may not fully understand what cryptocurrency is and how to use it. Here’s a simplified definition:

A cryptocurrency is a digital form of payment featuring cutting-edge encryption. You can use crypto to purchase goods and services as you would with any other form of currency. While cash has a fixed value, crypto is an asset with a variable value. You can use cryptocurrency as collateral to take out a loan.

All cryptocurrencies are 100% decentralized. That means that no one government or bank controls them. A complicated decentralized network of thousands of computers gets used to verify transactions. The encryption is what protects them from tampering and theft.

Since any bank or government doesn’t control them, they’re a popular form of alternative currency. Lots of savvy investors put their money in crypto to avoid the hassles of using fiat currency.

Cryptocurrencies use distributed ledger technology to keep track of transactions. As the name implies, a shared database of computers serves as a ledger for all transactions.

The most common form of distributed ledger technology is called the blockchain.

In a blockchain, transactional information gets compiled into ‘blocks.’ They get added to the database, or ledger, one by one. That creates a linear chain of blocks that’s visible to everyone. There’s no way to delete or edit the information in a blockchain, which is why it’s so reliable and secure.

The Most Popular Forms of Cryptocurrency

Blockchain technology came about to serve as the ledger for Bitcoin. If you didn’t know, Bitcoin was the first-ever cryptocurrency. It came about in 2009, and it started the crypto revolution. Its creators had the goal of decentralizing the financial sector. Until 2011, Bitcoin was the only form of cryptocurrency in circulation.

Since 2011, the number of cryptocurrencies out there has exploded. Today, there are more than 4,000 cryptocurrencies available worldwide. Yet, Bitcoin remains the largest, most noteworthy, and for the most part, the most stable.

Since Bitcoin is such a behemoth, people often use the terms ‘crypto’ and ‘Bitcoin’ to refer to the same thing. However, it’s crucial to distinguish the two. Bitcoin is simply a form of crypto, and there are many, many others. Besides Bitcoin, the most popular forms of cryptocurrency include:

Ethereum. Based on a token called Ether, this is the second-largest form of crypto in the world today. Ethereum has moved beyond financial transactions, too. They use such an advanced form of blockchain tech that they can build and host decentralized apps.

Litecoin. In 2011, a Google engineer would create the world’s second form of crypto, Litecoin. It’s pretty similar to Bitcoin, but the creators claim that it processes transactions faster. It has a quicker block generation rate, which translates to faster transactions.

Ripple. If you need to handle higher-value purchases, Ripple is a great choice. It’s also referred to as XRP because of the encryption system that it uses.

Crypto for Online Retail Payments

As of 2021, more and more businesses are adopting crypto as a form of payment. Among these is PayPal, which announced Checkout with Crypto at the end of March 2021. With it, users can make purchases with their crypto coins from millions of online retailers. It’s a massive development for crypto in e-commerce.

So if you have PayPal set up with your Shopify store, you can technically already accept crypto payments in a sense. It works by letting users convert their crypto into fiat currencies with no transaction fees. In other words, PayPal enables you to convert your Bitcoin into US dollars so that you buy things online.

Other companies jumping on board include Expedia, Lush, Wake, Spencer, Tesco, and more. As you can see, the world of e-commerce is trending toward cryptocurrencies big time. So if you don’t want to get lost in the fray, you should start accepting crypto on your Shopify store.

Setting Up Crypto on Your Shopify Store

Now that you know more about cryptocurrency and how consumers use it, it’s time to learn how to accept crypto on your Shopify store. That way, you can attract customers that are only willing to use their crypto online. In that sense, accepting crypto is a way to open up your business to more customers. Here’s what you need to do to start accepting crypto payments:

Head over to the Shopify admin and select the Payment Providers page.

Next, select an alternative payment provider from the list.

You can choose from Coinbase Commerce, BitPay, and CoinPayments.net.

Once you enable one of these payment methods, you can start accepting Bitcoin, Litecoin, and over 300 other types of crypto.

Coinbase Commerce

If you go with Coinbase Commerce, you can accept the following cryptocurrencies:

Bitcoin

Bitcoin Cash

Ethereum

Litecoin

Dogecoin

USD Coin

As you can see, you can accept a wide variety of cryptos with Coinbase. Also, setting it up with your Shopify store only takes a few steps. Here’s what you’ll have to do:

Fill out the sign-up form for Coinbase Commerce by entering your basic personal information.

Create a unique Coinbase Commerce API key.

Add Coinbase Commerce to your Shopify store.

That’s all it takes to start using Coinbase Commerce to accept crypto payments online.

BitPay

If you decide to go with BitPay, you can accept the following forms of payment:

Bitcoin

Bitcoin Cash

Ethereum

Wrapped Bitcoin

Dogecoin

GUSD

USDC

BUSD

Here’s what you need to do to integrate BitPay with your Shopify store:

Login to the BitPay merchant dashboard and create a unique API Token. Do not check the box next to Require Authentication.

Under Token Label Field, select Shopify.

Login to Shopify and go to your admin page. From there, select Settings > Payment Providers > Alternative Payment Methods > Choose Alternative Payment > BitPay.

Copy and paste the API Token you created in BitPay in the required field. Hit Save and the process is complete.

CoinPayments.Net

If you want the widest variety of cryptos that you can accept, CoinPayments.Net is the way to go. They take dozens of forms of cryptocurrency. Of course, they work with the standard Bitcoin, Litecoin, Dogecoin, and Ethereum.

There are only three simple steps that you need to take to integrate with your Shopify store. They are as follows:

Receive your Merchant ID and IPN Secret.

Go to your Shopify store and add CoinPayments with your Merchant ID and IPN Secret.

As you can see, CoinPayments is a tad different than the others. Rather than using an API Token, you’ll use a Merchant ID and IPN Secret. While they go by different names, they serve the same purpose. Once you enter this unique information, you’re free to start using CoinPayments with Shopify.

Top Benefits of Accepting Crypto on Shopify

You may wonder if it’s worth it to set up crypto payments on your Shopify store. It’s certainly worth it, as you’ll enjoy lots of benefits from adding crypto. The top perks include:

Lightning-fast transactions. Traditional transactions with fiat currencies are slow. Thanks to blockchain technology, crypto is a lot faster and more direct. That will translate into a streamlined cash flow for your business. Since crypto processes immediately, orders can ship out on the fly.

Widen Your Audience. By accepting crypto, you’re welcoming a new group of consumers. There are plenty of customers that won’t shop at a store unless it accepts crypto. Now is the time to join the fray to attract as many customers as possible.

Much lower fees. If you’re sick of third-party transaction fees, you’re going to love accepting crypto. Transaction fees see significant reductions for cryptocurrencies. That can help you make your business more profitable.

Superior security. As stated before, cryptocurrency features excellent encryption. As such, cryptos are near impossible to steal or counterfeit.

Closing Thoughts

By now, you should know how to accept crypto on your Shopify store. Moreover, you should know that cryptocurrency is here to stay. There’s no point in fighting this trend, and adding crypto to your Shopify store is a total breeze. In just a few steps, you can start accepting the most popular forms of crypto on your store. That will lower your transaction fees, widen your audience, and enhance your security.

For more great content to help you develop your Shopify strategies, check out the rest of the merchant posts on the site. If you want to see a list of our top recommended Shopify apps visit this link here.