In this post , I intend to explain how to configure your business to automate the collection of cryptocurrency payments for subscriptions or services. I will cover the advantages, challenges, and best practices for repeating crypto billing.
Additionally, I will demonstrate the tools and services that enable streamlined and secure cryptocurrency transactions. Finally, I will explain how to accept recurring crypto payments for your business.
What Are Tecurring Crypto Payments?
Recurring crypto payments refer to automatic, scheduled exchange of cryptocurrencies for different crypto payments to be received on a daily, weekly, monthly, or yearly basis without any customers having to do anything.
Like subscription billing, automated billing works for payments that are received for a subscription or some other types of memberships, recurring donations, or for access to a subscription on a SaaS platform.
Payments for memberships, donations, and SaaS services can all be automated and crypto currency payment processors, smart contracts, or crypto wallets that have scheduled transfers.
Some of the most notable benefits of crypto recurring payments are the ability to process payments for any value without having to worry about payment processing fees, ease of borderless crypto transactions, and faster payment processing times.
Other notable benefits are the appeal to customers that are crypto coaches and the ability to build and implement crypto payment services. Volatility and tax implications of recurring crypto payments are issues, however.
How To Accept Recurring Crypto Payments
Creating An Account On Coinbase Commerce
Sign up for a Coinbase Commerce account and verify your email afterwards.Complete your KYC if there are any KYC requirements.
Completing The Merchant Profile Setup
Input your business’s information and specify your business’s preferred payment settings.Choose all the crypto coins you would want to receive (e.g. BTC, ETH, USDC, etc.).
Turning On Recurring Payments
Coinbase Commerce does have a feature wherein it can be integrated with subscription management tools such as Coinbase Commerce + Stripe, and also as a custom solution through API.Choose billing frequencies (daily, weekly, or monthly).
Inserting Payment Buttons or Using API
Place your website or application subscription payment button.If there’s a need for automated reccuring billing and smart contract integration, then you can also use the API.
Ensuring The Setup Works
You should conduct a test payment to check if the reccuring payments are functioning correctly.
Watching Over The Transactions
You can keep track of all the crypto payments entered and the transactions in the Coinbase Commerce account.If you want to keep crypto payment volatility at a minimum, you can set auto coin conversion to fiat.
Informing The Customers
Maintain transparency with your customers by sending notification emails or invoices for the recurring payments.
Benefits of Accepting Recurring Crypto Payments
Faster and Borderless Transactions: Payments are settled globally with no lags or hold-ups like those in dealing with traditional banking systems and international payments.
Lower Transaction Fees: Recurring payments in cryptos take relatively smaller amounts in processing fees resulting in huge savings for companies over a long time.
Security and Transparency: Unlike other payment options, blockchains are secure and unchangeable, while assuring verifiability of every account.
Appeal Crypto-Savvy Customers: Client companies that are crypto-using and tech-savvy will be attracted to your business due to offering them the flexibility to pay in crypto.
Challenges To Consider
Volatility of Cryptocurrency Prices
The value of these assets ranges regularly, meaning the real revenue earned from them could be lower unless they are converted to a stablecoin or the equivalent fiat currency.
Tax Implications and Accounting Complexities
Payments made to a business in crypto require record keeping, reporting, and a comprehension of local taxation administrative guidelines which are more involved than in standard payment systems.
Limited Mainstream Adoption
While the currency is still in the early adoption phases, it has a finite market which may restrict the customers willing to make crypto payments.
Regulatory Considerations
There are varying laws and legislation concerning crypto payments from one country to another, meaning a business has to be careful to avoid non-compliance.
Best Practices
Be Honest About Crypto Refunds and Volatility
- Customers need to understand the price volatility of crypto.
- Customers need to understand how refunds will work regarding crypto price volatility.
- Setting expectations goes a long way in maintaining trust.
Develop Clear Subscription Terms of Service in Crypto
- Subscription policies should clearly indicate the frequency of billing, accepted methods of payment, and terms around cancellation.
- Ensure customers understand what their obligations, as well as rights, when making payments in crypto.
Use Stablecoins to Lower Volatility
- Accept stablecoins, such as USDT, USDC, or DAI, in recurring payments.
- Stablecoins have a pegged price and will minimize your loss in revenue due to price volatility.
Be Aware of Your Country’s Legal And Tax Obligations
- Be aware of your country’s regulations and tax laws and those of your customers.
- Use accounting software or consult professionals to ensure compliance and accurate reporting.
Conclusion
In conclusion, Businesses can reach an international and technically adept audience, and they can enjoy quicker transactions, lower costs, and safe, blockchain-sustained processes.
Accepting recurring crypto payments enables firms to reach an international and technically sophisticated audience. Businesses can streamline recurring crypto billing and digitize subscription models with ease when they select suitable payment processors, employ stable coins, maintain transparency, and stay within the realms of legal compliance.
FAQ
Which cryptocurrencies can I accept?
Major coins like BTC, ETH, and stablecoins such as USDT or USDC.
How do recurring crypto payments work?
Customers authorize repeated payments, which are processed automatically at set intervals.
Are there risks?
Yes—volatility, tax complexities, and regulatory requirements.
Can payments be converted to fiat?
Yes, many platforms allow automatic conversion to reduce volatility.
Do I need technical knowledge?
Not for payment processors; smart contracts may require coding skills.
