Everything you need to know about Ethereum payments

Ethereum payments

Ethereum payments are one of the fastest-growing payment options. It is common to use this option as a way to pay for goods and services as well.

People who actively use Ethereum to pay are tied to sites that accept this cryptocurrency for payment.

If you want to attract new visitors to your website, increase your income level, increase audience loyalty, and, as a result, achieve higher conversions –allow your customers to pay with Ethereum.

Organizing Ethereum payments is not that complicated, and many recommendations will be useful for you when connecting other cryptocurrencies as well.

What is Ethereum

Ethereumis a universal platform based on which it is possible to create decentralized applications. One of the products of the platform is the cryptocurrency Ether, or Ethereum (Ether or ETH), known to many users.

If we talk about the key differences between Ethereum and Bitcoin, it is worth noting the fact that the very idea of the platform was not to create and bring to market a new cryptocurrency.

Only over time, market players appreciated the convenience of this tool in the transition from fiat currency to altcoins. In fact, Ethereum is an excellent tool for a safe investment, while Bitcoin’s main purpose is as a means of payment.

Leading market experts prefer to invest in Ethereum projects because this investment option is more profitable in the long run than the usual purchase of cryptocurrency.

How Ethereum works

Another key difference between Ether and Bitcoin is that in its blockchain, the coin is not mined, but received and can be used to pay for services within the network.

Ether was able to combine the advantages and functionality of not only Bitcoin but also cryptocurrencies such as Litecoin and Ripple. Users can use Ether not only to pay for goods and services but also to store assets and invest.

All transactions in ETH are objective because they are the result of the work of a computer program.

The program checks not only the terms of the transaction but also the mutual fulfillment of obligations by both parties (sender and recipient). It is impossible to bypass or cancel the procedure.

It is better to understand this process with an example that has nothing to do with digital currency. There are thousands of platforms designed to sell goods or services online.

However, a platform cannot function fully unless buyers and sellers are registered on it. For both parties, the platform becomes a guarantor in financial matters.

The client makes a payment on the site and the platform freezes the funds. The seller will receive payment only after he sends the goods, and the client confirms its receipt.

Thus, both parties gain access to the goods and funds only if they comply with the platform’s requirements. Transactions in ETH similarly take place.

Transactions on the platform are performed without external influence through a program that can determine the terms of the transaction. The result is also entered into the blockchain by the program at the time of the transaction.

Why Choose Ethereum

Users love Ethereum cryptocurrency payments for their security, reliability, and convenience. But these are not all the advantages of Ethereum. Among the weighty arguments in favor of choosing this platform are also:

  1. Direct transactions without the need to involve third parties;
  2. Versatility of the payment system (options are not limited to transactions or mining only);
  3. High speed of transactions (by this indicator it beats even the leaders of the segment);
  4. Low commissions;
  5. Storing all transaction information in the blockchain.

Payment connection methods in Ethereum

There are several ways to set up cryptocurrency payment acceptance:

Accepting payments to a personal Ethereum wallet

The simplest in terms of organization of the method of accepting payments and at the same time the most difficult in further implementation.

The whole organization of payment acceptance in Ethers is reduced to placing the information about the wallet details on the site. It is possible to choose a more convenient variant – to replace the address with a QR-code.

Difficulties begin when a large number of cryptocurrency payments begin to arrive, as tracking and accounting for them becomes an almost impossible task.

To get out of this situation, you can ask customers to provide addresses to link their transactions to purchases.

Acceptance of payments through POS terminal

The main disadvantage of this option is the small number of terminals.

The terminal allows you to speed up transactions significantly because the operation takes place without a computer.

This option is suitable for offline payment with cryptocurrency in stores, cafes, etc.

The gadget does not require a connection to external devices, it only requires high-speed Internet.

To make a payment, you need to enter the amount payable on the terminal itself and then the client in the smartphone selects the option of sending coins.

 You can print a receipt on demand by connecting the terminal to a printer.

Connecting the payment gateway

Cryptocurrency payment gateway allows you to accept payments in Ethereum including. This option is convenient and suitable for online business tasks.

The disadvantage of this option is that there is an intermediary, which is the gateway. However, this is outweighed by the ease of connection and clarity of transactions.

Payment acceptance via Ethereum API

This option is similar to the connection of the payment gateway with one significant advantage: all functions of the payment gateway are available to you and in addition, there is a possibility of configuration with the convenient connection of the trading account.

Using WooCommerce

The WooCommerce plugin is an option available for sites built on WordPress.

 Today it is one of the most popular solutions, allowing you to accept payments by cards, payment systems, and cryptocurrency including. The popularity of the solution is due to the ease of integration of the plugin.

Creating your own payment system

If you don’t trust third-party payment services, you always have the option of creating your own tool. This will take more time and require a larger financial investment.

But you will get a solution that does not require payment of fees, so the investment can pay off quickly enough.

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