How To Accept Crypto Payments on Magento 2?
Handling a Magento online store means knowing that offering your shoppers various payment choices is key. With cryptocurrency gaining traction, it becomes more significant to consider these payments.
But don’t worry – accepting crypto payments in Magento 2 isn’t as complicated as it may seem. It’s like adding another tool to your toolbox – just because you have a hammer doesn’t mean you can’t also use a screwdriver.
Adding crypto payments can help expand your customer base and increase revenue, so it’s worth considering. In this article, we’ll take a look at some of the best ways to accept cryptocurrency payments in Magento 2 and what you need to consider before getting started.
What do you need to accept cryptocurrency payments in your Magento store?
To accept cryptocurrency payments in your Magento store, you’ll need to set up a cryptocurrency wallet. This wallet will allow you to store and manage your digital assets securely.
You’ll also need a payment gateway suitable for Magento websites, such as BitPay or Coinbase Commerce. These gateways can seamlessly integrate with your store and process cryptocurrency transactions.
Remember, setting up these components properly is crucial to ensure smooth payment processing and customer satisfaction. So take the time to do it right!
Cryptocurrency wallet
A cryptocurrency wallet is a digital wallet that allows you to securely store, send and receive cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
There are different types of wallets available including software wallets, hardware wallets and paper wallets.
Software wallets are the most common type of wallet and they come in the form of mobile apps or desktop applications. These wallets allow you to easily manage your crypto funds and many of them are free to use.
Hardware wallets, on the other hand, are physical devices that you can plug into your compute. They offer offline storage for your private keys which makes them less vulnerable to hacking attempts.
Paper wallets are another option where you print out a QR code containing your public and private key pairs onto paper which can be stored offline for added security.
Overall, having a cryptocurrency wallet is an essential step towards accepting payments in crypto on your Magento store.
We at Coinlabz recommend Software wallets for beginners as they are more user friendly and quite straightforward to use. If you plan to hold on to a larger amount of digital currency we suggest storing them offline in a hardware wallet. Therefore you would retain full control and ownership of your crypto, while not relying on a third-party to protect your assets. They also have a PIN encryption with the option for some to include a biometric login to add another extra layer of protection.
Payment Gateway suitable for Magento websites
In order to accept cryptocurrency payments in your Magento e-commerce store, you will need to integrate a crypto payment gateway. Luckily, it is easier than it sounds.
First you would need to integrate the crypto payment gateway in your website or online store to begin accepting crypto payments. The crypto payment gateway processes the transaction, verifies the transaction details and checks for sufficient funds when a customer wants to pay with a cryptocurrency. Then it converts the cryptocurrency to a fiat and sends it back to the merchant’s account in the desired local currency. Usually the payment is settle within a few business days.
Fundamentally it is a processor that allows merchants to accept cryptocurrency payments in exchange for fiat currency.
Coingate Magento 2 plugin
You’ll be pleased to know that with the Coingate Magento 2 plugin, your online store can easily integrate a fully automated payment processing system for over 50 cryptocurrencies. This free-to-download plugin has no hidden or subscription fees and requires minimal setup charges.
Using Composer, you can install the plugin and configure it in Magento Admin. This payment gateway is fully automatic with automatic payment confirmations and order status updates. You can customize invoices as per your business requirements and extend expiration time up to 24 hours.
The Coingate Magento 2 plugin supports Bitcoin, Litecoin, Ether, XRP, Nano and many other popular cryptocurrencies. The prices for goods can be set in any local fiat currency while the payment amount will be calculated using real-time exchange rates of cryptocurrencies.
Merchants have an option to receive real-time settlements in Euros or US Dollars or settle coins into multiple crypto-assets and stablecoins. Additionally, businesses can accept slight underpayments too. With a flat 1% rate of successfully processed payments charged by CoinGate, there are no hidden charges to worry about.
Payouts are guaranteed and cannot be charged back making it a risk-free installation option for merchants looking to accept cryptocurrency payments on their online stores. The support team at support@coingate.com is available round the clock for any queries related to the product.
BitPay integration for Magento 2
BitPay’s Magento module provides direct checkout integration, allowing customers to pay with Bitcoins. This integration is easy to set up and can help you reach a wider audience by accepting cryptocurrency payments.
To integrate BitPay into your Magento 2 store, you must first create an account with BitPay and install the free Magento module. Once installed, configure it by entering the API key generated in your BitPay dashboard. After enabling the payment method, customers can simply select the Bitcoins payment option during checkout.
Here are some benefits of using BitPay for cryptocurrency payments on your Magento 2 store:
- Low transaction fees: With a flat rate plan ranging from $30 to $3000 per month depending on accounting needs, you could potentially save money compared to traditional payment processors.
- Volatility protection: As BitPay automatically converts cryptocurrency payments to your preferred fiat currency without any fees, as it protects you from the infamous price volatility of the crypto market and secures the value of your assets.
- Simple setup: The installation process is straightforward and requires only basic technical knowledge.
- Secure transactions: BitPay uses advanced security and fraud prevention measures to ensure the safety of the transactions.
Coinbase Commerce for Magento 2 (with Appy Pie)
Integrating Coinbase Commerce with Magento 2 through Appy Pie Connect can provide businesses with enhanced productivity and streamlined workflow. With Coinbase Commerce, merchants can accept payments in digital currencies like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. By integrating this payment service with Magento 2, businesses can expand their customer base and offer more payment options to their clients.
With Appy Pie Connect’s pre-built integration for Magento 2 and Coinbase Commerce, mapping data fields between the two apps is automated, reducing manual data entry and errors. This not only saves time but also improves accuracy in financial transactions. Additionally, integrating different apps with each other helps businesses improve collaboration among team members by making it easier to share information and stay on top of tasks.
Setting up the integration between Magento and Coinbase Commerce through Appy Pie Connect is a straightforward process that doesn’t require extensive technical knowledge. The platform offers advanced features such as multi-step workflows, custom triggers/actions, conditional workflows, syncing specific fields, and real-time syncing.
Coinbase Commerce provides a secure payment processing as the funds go directly into the Merchant’s personal cryptocurrency wallet. It’s cost-effective for small businesses or startups that have limited budgets but want powerful integrations without sacrificing functionality or performance.
Coinqvest Crypto Payments for Magento
Coinqvest is an enterprise payment processor for Magento 2 that enables merchants to expand their customer base. With Coinqvest, you can accept payments in cryptocurrency.
The platform provides easy withdrawals, real-time conversions, compliance in billing and accounting, and access to transaction history records. One of the key benefits of using Coinqvest is that it meets SAQ A level of PCI compliance. This means that merchants do not have to worry about storing customer payment information as the platform provides a secure payment process.
In addition to this, Coinqvest allows merchants to handle more customers by providing them with a range of features such as custom title settings at checkout and country selection. Customers are redirected to the Coinqvest hosted payment page where they must click ‘Get Deposit Address’ followed by ‘I made the payment’ button after completing their cryptocurrency transaction.
Upon successful completion of the transaction on their wallet side, a success message will appear with an ‘OK’ button. Customers can view their payment details under ‘My Account’, while admins can check them under Sales Orders section.
Another benefit of using Coinqvest is the compliance with regulatory requirements they follow like Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which ensures and protects merchants against fraud and money laundering.
Spectrocoin for Magento
SpectroCoin offers a payment integration solution for Magento 2 merchants, allowing them to settle transactions in various currencies and avoid volatility. With SpectroCoin, you can accept over 25 cryptocurrencies, including BTC, ETH, and USDT. In addition to that, you can choose to settle payments in EUR, USD, GBP or any of the other 20+ alternative currencies supported by SpectroCoin.
One of the best things about this payment integration solution is its ability to process payments instantly. You don’t have to worry about delayed or failed transactions as everything happens in real-time.
To get started with accepting crypto payments on your Magento 2 store using SpectroCoin, you need to create a merchant project with Spectrocoin first. This will give you access to your Merchant and Project IDs which are required during the setup process.
Once you have set up your merchant project on SpectroCoin’s platform, it’s time to download and implement the payment module from Github. Using SSH, navigate to var/www directory and create a new directory where you’ll clone the Github repository. After cloning it successfully into the new directory created earlier, run bin/magento setup:upgrade command on SSH terminal.
Find more information for the process here:
https://spectrocoin.com/en/plugins/magento2.html
Nowpayments integration with Magento
You can easily connect your Magento 2 store with NOWPayments using just a few simple steps and gain an edge over the competition with borderless transactions and fiat conversion.
With over 100 coins available for acceptance and autoconversion, NOWPayments makes it easy to accept cryptocurrency payments without worrying about chargebacks or banking fees. This integration process requires a NOWPayments account, crypto wallet, API key, and Magento version 2.x.
To begin the integration process, simply extract and upload files to your Magento root directory. Then, run commands in SSH command line to complete the setup process. Afterwards, navigate to your Magento Admin under Payment Methods to enable the plugin setup.
Along with its many benefits such as borderless transactions and auto-conversion of cryptocurrencies into fiat currencies like USD or EUR, NOWPayments also has cookies used during transactions which require agreement with their Terms of Use and Privacy Policy before proceeding further.
Coinremitter payment for Magento
Coinremitter’s payment plugin provides a fast and secure way to process crypto transactions with its easy-to-use interface and support for major cryptocurrencies like Bitcoin and Ethereum. Plus, it’s one of the most affordable options available with processing fees as low as 0.23%.
To get started with Coinremitter’s Magento payment plugin, make sure you have Magento version 2 installed along with Elastic Search. Then download the plugin from either the Magento marketplace or GitHub source code. Once downloaded, follow the plugin configuration guide on GitHub. You’ll then be able to adjust the plugin settings in Store Configuration under Sales and Payments Methods.
With Coinremitter’s Magento payment plugin installed, customers will be able to select the ‘Pay Using Cryptocurrency’ option at checkout and choose their preferred coin wallet for payment. After payment is made, an invoice will be generated that requires three confirmations to mark the order as paid. And because the extension only supports cryptocurrency transactions, PCI compliance isn’t required.
Coinremitter offers a trustworthy and reliable option for merchants. It offers secure, reliable and robust payment processing service with quick and straightforward setup.
Plisio payments for Magento
To get started with Plisio, download the extension from the Magento Marketplace or Plisio website and install it on your Magento site. Then, configure it in the Plisio configuration page in the admin panel.
Once set up, customers can make payments using various cryptocurrencies through the plugin. Here are some key features of Plisio to keep in mind:
- It supports SegWit protocol and chooses high priority transactions with a lesser network fee.
- The plugin accepts prices in BTC and fiat money converted into bitcoin.
- Merchants receive payment in cryptocurrency only.
- There are no country restrictions for its users.
Additionally, Plisio charges a fee for each transaction which varies depending on the cryptocurrency used and volume of transactions. However, there is no KYC requirement or third-party accounts involved during the process which allows for easy integration.
When considering integrating any payment gateway with Magento 2, it’s important to choose one that meets your business needs and budget. Be sure to review pricing plans and fees associated with each provider before making a decision.
After the integration is set up, merchants can do a test transaction to be certain that the payment is processed correctly and the order has been created in Magento.
One of the primary advantages of using a crypto payment gateway like Plisio is the quickness of transactions. Unlike bank transactions, there isn’t a third-party involved, making the transactions more rapid and efficient.
What to consider before starting to accept cryptocurrency payments?
Before you start accepting cryptocurrency payments, there are a few key things to consider.
Have an investing strategy for your cryptocurrency assets
A proper investing strategy is essential to your overall success and profit margins. You can use some or the majority of your cryptocurrency for staking, which practically locks it for a certain period of time to support the security and operation of a blockchain network and earn rewards in return.
Another option is Crypto yielding or lending, which allows crypto owners to earn returns on their holdings by lending them out to borrowers. It typically offers a much bigger yields compared to the traditional financial institutions as the offering rates are around 9% or higher.
Of course you can plan to hold on to your digital assets for a longer period of time but you have to be cautious due to the notorious volatile nature of the cryptocurrencies and protect their value. Planning when to cash out and convert your digital assets into a fiat currency of your choice or how to spend it efficiently on bills or expenses can make or break your financial quarter.
Comply with regulations
To ensure that you’re operating within legal boundaries and avoiding potential penalties, it’s important to follow regulations when dealing with cryptocurrency. Depending on your location, you may need to register as a money transmitter or obtain a license from your government.
Additionally, some countries have banned the use of cryptocurrencies altogether, so it’s crucial to know the laws in your area. In addition to national regulations, there are also international laws that must be followed.
For example, anti-money laundering (AML) and know-your-customer (KYC) procedures should be implemented to prevent illegal activities such as money laundering and terrorist financing. By complying with these regulations, you can protect yourself from legal repercussions and demonstrate professionalism in your business practices. To make sure you comply with all regulations and local laws, we highly recommend to consult with an expert that is familiar with the topic.
Pay taxes on your crypto gains
If you’re making gains from your cryptocurrency investments, don’t forget to pay taxes on them. It’s like enjoying a delicious meal at a fancy restaurant but not leaving a tip for the hardworking servers.
Many people believe that cryptocurrencies are exempt from taxes or are difficult to track, but that’s simply not true. The IRS considers cryptocurrency as property and requires taxpayers to report any gains or losses on their tax returns.
To properly report your crypto gains, you must keep track of all transactions and calculate the value in US dollars at the time of each transaction. Failure to do so can result in penalties and fines from the IRS.
We at Coinlabz recommend to consult with a tax professional who is knowledgeable about cryptocurrency taxation to ensure compliance with all regulations. By paying your taxes on crypto gains, you’ll avoid legal troubles and contribute towards building a stronger economy for everyone.
Frequently Asked Questions
How does the process of accepting cryptocurrency payments differ from traditional payment methods in Magento?
Accepting cryptocurrency payments in Magento differs significantly from traditional payment methods. Firstly, traditional payment methods involve the use of banks and financial institutions as intermediaries, while cryptocurrency payments are decentralized and require no central authority to facilitate transactions.
Furthermore, accepting cryptocurrency payments requires merchants to set up a digital wallet and integrate it with their Magento store through a third-party payment processor.
What are the fees associated with accepting cryptocurrency payments through various integrations with Magento?
First and foremost, the most common fee is the transaction fee, which is charged by the blockchain network for processing transactions. This fee can vary depending on the current network congestion and can range from a few cents to several dollars per transaction.
Some payment gateways or processors may charge their own fees for processing crypto payments. These fees can also vary depending on the provider and can include flat fees, percentage-based fees, or a combination of both.
Are there any other popular e-commerce platforms like Magento?
Yes, there are plenty of other e-commerce platforms available. Some of the most famous ones are Shopify, WooCoommerce and BigCommerce.
Are there any legal considerations or regulations to be aware of when accepting cryptocurrency payments in Magento?
It is important to understand that cryptocurrencies are not yet regulated as extensively as traditional currencies. However, this doesn’t mean that you can accept payments without taking any legal measures.
Depending on your location and the type of business you operate, you may need to register with relevant authorities or obtain a license before accepting cryptocurrency payments.
Also you should be familiar with anti-money laundering (AML) laws and ensure that your payment processing system adheres to these regulations.
How can merchants ensure the security of their cryptocurrency payments and avoid fraud?
You have to make sure to use a reputable payment processor that has experience with handling cryptocurrency transactions.
Then consider implementing multi-factor authentication for all transactions and regularly monitoring your accounts for any suspicious activity.
How can merchants reconcile their cryptocurrency payments with their accounting and tax reporting processes?
Merchants should ensure that their payment processor provides comprehensive transaction data that can easily be integrated into their accounting software.
It’s also essential to keep accurate records of all transactions in a secure and accessible location. Merchants may need to consult with tax professionals or accountants who are familiar with cryptocurrency regulations to ensure compliance with relevant laws and regulations.
A regular review and updating accounting procedures as the cryptocurrency landscape continues to evolve is very important too.
Conclusion
Congratulations! Now that you know what options are available, it’s time to consider whether or not accepting crypto payments is the right choice for your business.
Of course, you could always just stick with traditional payment methods and avoid all the hassle and potential risks associated with cryptocurrency transactions.
Who knows, maybe accepting Bitcoin will make you feel like a modern-day tech pioneer blazing new trails in e-commerce. Just remember – we’re here to provide information – not financial advice.
So good luck out there, and may the blockchain be ever in your favor!
Zornitsa is the Editor-in-chief at Coinlabz. She is involved in researching the impact of blockchain technology and the way crypto is transforming peoples’ perceptions of finances.
