How to Accept Crypto Payments for Your Business

The modern guide to accepting crypto payments securely with Slash¹

Crypto payments and exchanges are rapidly becoming commonplace in global markets and for a variety of industries, not just tech companies. From e-commerce brands to agencies operating globally, businesses are adopting crypto payments as a practical transaction and payment method.

Global reach, fast settlement, access to decentralized blockchain networks, and a reputation as a cutting-edge player are reasons why companies are integrating blockchain into their operations. But if you’re just starting out with crypto, it can be a taxing uphill climb before you’re able to make your first crypto payment.

In this guide, we hope to make the trek easier. We’ll walk you through what crypto payments are, why it matter for your business, how to go about making your first payment, and how financial tools like Slash can help you in the process.

What does it mean to accept crypto payments

Accepting crypto payments means that your business allows customers, vendors, and partners to pay you with cryptocurrency. Cryptocurrency or crypto, as it’s often referred to, is a digital asset that can be exchanged, paid, and stored on a blockchain rather than in a bank network or card system. This essentially means that your payments are decentralized, run, maintained, and protected by blockchain algorithms.

Blockchain’s decentralized nature and global reach give it capabilities beyond traditional banking, meaning that accepting crypto payments can take place at any time and day and aren’t subject to bank hours, higher fees, and holiday breaks. However, cryptocurrencies are often volatile; payments you make at one time of day can reflect a different value than payments made at a later hour.

Stablecoins are a form of cryptocurrency that can be used to pay, trade, and exchange with customers, vendors, and partners without the volatility risk of other currencies like Bitcoin. Stablecoins like USDC and USDT are pegged to USD, so 1 stablecoin = 1 USD. For accepting payments with crypto, this means more straightforward unification with fiat systems, letting your business accept USD-pegged stablecoins for predictable pricing with lower transaction fees and faster settlement benefits of crypto.

Why businesses are adopting crypto payments

Crypto is topping headlines, and if you’re new to the space, you may be questioning why so many businesses are making the switch now. There are a number of key reasons why crypto is increasingly becoming a widely accepted payment method:

Access to a global customer base

Unlike traditional banking systems that are oftentimes geographically and politically based, blockchain and crypto rails are borderless by design. This has a number of advantages for business, including faster global transactions while spending less on FX and transfer fees. With easier global access on the payment and processing side, this means your customer base can be more global, so you can attract higher scale and more diverse customers, industries, and partnerships.

Faster cross-border payments

Traditional cross-border payments must contend with high FX or foreign exchange fees, bank processing time, and work-hour or holiday delays. With such global reach, this sort of lag can be extremely costly for businesses. Crypto, especially stablecoin assets, allows companies to send and receive payments faster, more globally, and with fewer fees. Using Slash, this process doesn’t even require much financial distance from your typical fiat banking. With USDSL (a 1:1 pegged USD stablecoin), you can auto-convert cash to coin to reap the benefits of crypto processing without redistributing your finances.

Lower transaction fees compared to traditional rails

Banks typically impose high fees on exchanges and transfers. Depending on the form of transfer, like international high-speed wires, this can get costly. If you’re a business that moves money frequently, needs to pay vendors on time, or operates globally, this means traditional banking isn’t keeping up. Cryptocurrencies, like Slash’s USDSL, let you cut out this operational lag.

Enhanced brand reputation

With more companies accepting crypto, having your own crypto processing can contribute to an enhanced brand image, potentially bringing in new customers. The global reach of crypto can also help you attract customers and partnerships with broader audiences.

New revenue streams

Ultimately, offering crypto payments gives customers and partners another way to pay you. This lowers any restrictions and creates a new revenue stream for your business to gain revenue and continue to scale.

Key considerations before accepting crypto

Crypto has a lot to offer your business, but it’s not a perfect system. Considering all aspects of crypto before you accept payments will help you ensure it’s the right fit for your business, give you more clarity on the process itself, and set you up for successful future transactions.

Volatility and the risk of price swings

Cryptocurrencies like Bitcoin and Ethereum are historically and infamously quite volatile. This means their price regularly and sometimes drastically fluctuates. This can be a huge concern for most businesses needing stable pricing and reliable payment inflow. Luckily, not all cryptocurrencies act like Bitcoin; rather, stablecoins are a type of cryptocurrency intentionally designed to remain stable. Slash’s USDSL3, for example, is pegged to USD, so 1 USDSL is equal to 1 USD. Stablecoins can eliminate any issues regarding volatility, but there are benefits of using other cryptocurrencies that are important to consider if they better suit your business needs.

Tax and accounting compliance

Crypto accounting isn’t wholly unlike traditional accounting; it involves maintaining and recording transaction and payment histories, financial statements, exchanges, loans, and more comprehensive aspects of your accounting ledger. However, crypto can become complicated with multiple wallets and payment platforms. Additionally, new regulations and changes in crypto laws can change tax filing requirements. Ensuring you or your accountant is up-to-date on crypto accounting is necessary.

Security best practices and fraud

There are a number of crypto wallets, exchanges, and payment platforms for authorizing and accepting crypto payments. However, these third-party sites can introduce you to risks of fraud or phishing. Making sure to use trusted and supported tools will limit the risks involved in crypto payments. Using Slash lets you access permissions, approvals, and logs in one secure dashboard.

Choosing the right payment processor or partner

Payment processors are sites where crypto payments can be made. There are many out there that can differentiate by what cryptos they support, on/off ramp features, and expense tracking. The best payment processor for your business should support the sort of transactions you intend to make while making it as straightforward as possible. Slash makes receiving, conversions, payouts, and reconciliation accessible on one dashboard with access to USDSL, USDC, and USDT.

Understanding customer demand in your industry

What crypto is accepted or widely exchanged may differ by industry. Use features like Slash that let you toggle stablecoin acceptance without reworking invoicing or checkout. This will let you test how crypto processing is working with your industry and customer base without tacking on extensive operational load.

Common ways to accept crypto payments

As crypto continues to expand, it’s good to know that there are many pathways for sending payments:

Using a crypto payments gateway

Popular crypto payment platforms, such as BitPay, Coinbase, and PayPal, support crypto payments, often alongside other financial management plugins and tools. Many customers may already be familiar with these platforms, saving you a potentially expensive and lengthy operational step.

Accepting direct wallet-to-wallet transfers

Direct transfers between crypto wallets function similarly to transfers between bank accounts, but without the bank intermediary. Customers, vendors, and partners can send crypto payments directly using your wallet address. This process is fast and often involves no to low fees.

Integrating crypto payments into e-commerce platforms

Plugins, apps, and APIs can let you integrate crypto payment platforms into your e-commerce platform. An example is Shopify’s integration with BitPay, a fairly streamlined way to set up and accept payments on one site. Another example includes WooCommerce.

Using third-party merchant services with auto-conversion to fiat

PayPal, Stripe, and Clover are examples of third-party merchant services that your business can use in its payment process. These may be familiar to customers and make it easier for them to make payments, but they may incur more fees with additional third-party features.

How to accept crypto payments with Slash step-by-step

Slash is designed to make it as easy as possible for real businesses to finance at scale. Key to this aim is building out a crypto payment system that works efficiently with trusted results. Here’s an in-depth look at how accepting crypto payments works with Slash:

Step 1: Open a Slash account and verify your business

Navigate to slash.com/register or get in contact with our customer support team to apply for a Slash account. Be prepared to provide your basic information, EIN, and company documents, so Slash can verify your business’s authenticity.

Step 2: Enable stablecoin payments

Once you’re set up with your Slash account, make sure to turn on USDSL, Slash’s stablecoin 1:1 backed by US Treasuries or cash equivalents. Also, ensure you’ve authorized stablecoin acceptance, so you can receive payments in USDSL, USDT, and USDC.

Step 3: Set auto-settlement preferences

You can now customize your Slash dashboard further. This includes choosing rules for incoming stablecoin payments and automating instant conversion to cash.

Step 4: Share payment details with customers

Generate stablecoin receiving instructions in Slash. Add “Pay with stablecoin” to invoices/checkout. If you’re still operating in fiat, you can also share your account details for supported ACH transfers, wire transfers, and real-time payments.

Step 5: Receive and use your funds

From your Slash account, you can hold balances, pay vendors via fiat-paths or stablecoin, manage approvals, and access detailed financial information, management tools, and integrated accounting software all in one place.

Step 6: Reconcile and scale

Manage multiple entities with fiat and crypto payments all in one platform. And, Slash integrations with QuickBooks and Xero let you stay on top of both your banking and crypto stack for comprehensive, clear finances.

Frequently Asked Questions

Are businesses taxed on crypto?

Yes. There are different tax obligations depending on the type of crypto you are holding and why. If you are operating with Slash stablecoins, you will have features in your dashboard that assist with maintaining accurate timestamps and records, so you are better prepared for tax filing season.

Can I accept crypto as payment?

Laws differ from country to country, but in the US, you may be able to pay and receive crypto legally. Laws and regulations around crypto are rapidly evolving, so it is important to continue monitoring any changes.

What are the differences between USDC and USDT?

Both USDC and USDT are stablecoins pegged 1:1 to the US dollar. They differ by issuer, with USDC issued by Circle and USDT issued by Tether. Tether and Circle have additional differences in their reserve practices, networks, and policies.

¹ Digital-asset services (including the Global USD Account and USDSL stablecoin) are provided by Slash Financial, Inc. in partnership with third-party providers. Digital assets are not bank deposits, legal tender, or covered by FDIC, SIPC, or any other government-backed insurance. USDSL is issued and redeemed solely by Bridge Building Inc; Slash neither custodies digital assets nor guarantees redemptions or reserve sufficiency. Geographic, regulatory, and other eligibility limits apply. See the full Global USD Account Terms of Use for more details.