How to accept crypto as a small business?

What are crypto?

Crypto are transactions made using cryptocurrency.

But what is cryptocurrency? In basic terms, it's a form of currency that only exists in the digital space, so it's exclusively transmitted from computer to computer. This currency uses cryptography — or encoded information — to validate and secure each transaction. Each transaction is then recorded in a digital ledger called 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 cryptocurrency was created to be unregulated and decentralized — without any overseers or intermediaries — governments around the world are considering ways to monitor and manage crypto.

In the U.S., cryptocurrency regulations can vary by state, so be sure to research any state regulations that may impact how you accept payments.³

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: In 2022, 3.6 million US adults were expected to use cryptocurrency to make a purchase — a 68.6% increase from 2021.⁴
• Lower transaction fees: By accepting crypto, businesses can save on costs associated with more traditional payment methods.
• No chargebacks: Crypto aren't reversible. Since all are final, there may be lower risk of chargebacks for merchants.
• International: Cryptocurrencies are borderless since they're simply transferred from computer to computer — so they can make global quicker and less expensive.
• Fast processing: Cryptocurrencies can be transferred quickly. 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.

Discover the many ways to accept payments with PayPal.