Cryptocurrency Point of Sale (PoS) Systems

Cryptocurrency point-of-sale (PoS) systems are becoming popular as more businesses and people start using digital money. They allow stores to accept cryptocurrency, giving customers a cool new way to pay. Avoiding traditional credit cards saves money on fees, speeds up checkout time, and adds security. Learn the key parts, features, and how both stores and shoppers benefit from using these PoS systems.

What is Crypto Point of Sale?

Crypto Point-of-Sale (PoS) is a solution for setting up a cryptocurrency payment gateway. It allows customers to pay for products and services with cryptocurrency quickly and easily using their mobile devices and cryptocurrency wallet. The main benefit of the Point-of-Sale system is its convenience, as it only takes a few seconds to generate an invoice that customers can use to pay. Moreover, the PoS gateway is easy to use and does not require any complicated configuration.

Payment for Services is a secure way for both the seller and the buyer when using cryptocurrencies. It also offers merchants the ability to customize their invoices and generate new ones for each customer, making PoS an ideal option for small brick-and-mortar stores that don’t need to handle dozens of transactions per second.

Cryptocurrency POS can be web-based (software) or a hardware/device, similar to the standard PoS terminals we use every day.

How does a cryptocurrency POS system work?

Whether it’s a web-based application or a hardware device, point-of-sale systems works Very similarly.

Cryptocurrency POS terminals are easy to use. All you need to do is enter the amount your customer needs to pay in any fiat currency, select the cryptocurrency you want to pay with, and the system will automatically generate a QR code.

Your customer can use their phone to scan the QR code and pay the amount you mentioned above with their crypto wallet.

Benefits of using cryptocurrency PoS in your physical store

Greater security than standard payment methods

All digital assets are backed by a blockchain system that uses cryptography. Cryptography is an area of ​​mathematics focused on providing secure end-to-end encryption. Your transaction is therefore securely transmitted through highly encrypted cryptocurrency mining servers to form a series of blocks that cannot be modified. This reduces the risk of scams, transaction interruptions, or power outages to your point-of-sale system.

Low transaction fees

By using standard POS systems for transactions, you are entrusting third-party providers with the responsibility of security. However, when it comes to cryptocurrencies, blockchain networks allow for peer-to-peer exchanges without any third-party providers. Using a cryptocurrency payment gateway eliminates the need for third-party providers, which in turn reduces transaction fees to around 1%. On the other hand, standard credit or debit card transactions are subject to a 3% fee.

Best for marketing

You already know that enabling cryptocurrency payments is a growing trend when it comes to the future vision of payment methods. An effective marketing campaign can be built around a simple slogan: “We embrace the future of digital payments.”

Staying ahead of the competition

No matter how big or small your business is, you are always facing direct competitors. You can reach a new, loyal customer base by implementing a fast and secure way to transact.

A new, richer demographic

According to an article in Triple A, In 2021, 46 million people, or 13.7% of the total US population, own cryptocurrencies. Looking at the statistics further, we can see that 44% of cryptocurrency owners in the US have an annual income of over $100,000.

No refunds

Bitcoin transactions are irreversible and can only be refunded by the receiving party, which is in significant contrast to credit card transactions, which can be reversed. This means that if you accept bitcoins, there is no refund.

Read more at How to accept cryptocurrency payments in your physical store.

Important aspects to consider before using a cryptocurrency PoS system

All rewards come with some risks. There are a few factors you need to consider before implementing a PoS system.

Volatility

It is well known that cryptocurrencies can be volatile. It is essential to have a planned strategy on what to do with the coins you receive if you intend to hold them for a longer period of time. You should decide in advance whether you plan to withdraw them at some point and how often, or whether you decide to keep them.

Compliance

Cryptocurrency regulations and laws are constantly evolving in light of their increasing use around the world. Data protection regulations, anti-money laundering measures, and know-your-customer requirements are some of the factors to keep an eye on. It is important to stay abreast of changes in compliance or consult a legal expert if necessary.

Security

By using a cryptocurrency PoS, there is no third party involved and the transaction takes place directly between the customer and the merchant. You can access the history of the transactions you made instantly and remain anonymous in a world where privacy is a precious commodity.

Taxes and accounting

In many countries, tax laws regarding cryptocurrencies are constantly changing, as their stance is still unclear. For example, in the US, the IRS classifies cryptocurrencies as property or digital assets. Every time you buy, sell, or exchange cryptocurrencies, it is a taxable event. Keep taxes in mind before you start accepting cryptocurrency payments.

What digital currency do you want to accept?

If you want to accept cryptocurrencies, you need to carefully research which ones to incorporate into your business. The most popular cryptocurrencies are Bitcoin and Ethereum, which are a safe bet among users. If you still have doubts, don’t hesitate to talk to an expert.

What are the different types of cryptocurrency POS systems?

Let’s explore in more detail the two main types of cryptocurrency PoS systems: web-based applications and hardware devices.

Web-based cryptocurrency point-of-sale applications

These applications are accessed through a web browser and do not require any additional hardware. Merchants can simply sign up for the service, connect their digital wallets, and start accepting cryptocurrency payments from customers. These web-based systems offer a simple and convenient solution for merchants who want to accept cryptocurrency payments without investing in expensive hardware.

These apps can usually also be installed on Android or iOS, making them even more convenient.

Below are some examples of such cryptographic PoS applications:

Payments now

Payments now is one of the leading cryptocurrency payment gateway providers. They also offer a solution for accepting payments via a PoS link.

To set up a crypto POS link with Nowpayments, you need to follow these steps:

1) Create an account on Nowpayments

2) Add your wallet address

3) Go to Settings -> Coin Settings and select the cryptocurrencies you want to receive payments in. Make sure to select coins or tokens that are supported by your wallet! There are over 100 cryptocurrencies to choose from: