We are very exciting to announce that you can now start accepting payments in Bitcoin and many other crypto currencies.
So, What Is Bitcoin?
By now, many of you will have heard of Bitcoin even if you’re not completely sure what it is.
Bitcoin was the first decentralized crypto currency. It allows people to quickly and easily make secure encrypted payments online eliminating traditional middlemen and their sky high fees.
Since it’s public release in 2011 Bitcoin has grown rapidly in both use and value. It has been joined along the way by many other new crypto currencies (also known as altcoins).
Crypto currency has become extremely popular throughout the worlds as a quick and simple payment method. It is becoming commonplace in places as diverse as the US, South Korea, China, Europe and Australia.
A lot more information is available online. A useful starting point can be found at: Explain Crypto Currency.
How Does It Work For Guests?
They simply select the CoinPayments.net option, their preferred crypto currency and click on Pay Now as usual:
They will then be taken to the payment confirmation page that will show the payment as pending:
This information is also sent via email. Guests can either just scan the displayed QR-Code into their phone wallet or cut and paste the Pay To wallet address to complete their payment.
Once their payment is received and confirmed, the system will send out the usual booking confirmation emails.
How Does It Work?
Our software is integrated with CoinPayments.net who are a crypto currency payment gateway based in Vancouver, Canada. They provide merchant payment gateway services to over 396,000 merchants across 182 different countries.
CoinPayments.net provides you with a separate wallet for each crypto currency you have enabled. They process payments in these currencies on your behalf, deduct their commission (currently 0.5%) and deposit the balance into the appropriate wallet. Once the funds have arrived in the wallet, you have some options:
You can leave them where they are and use the wallet balance to pay for good and services.
Transfer Them To A Different Wallet
You can transfer them to CoinPayments vault or an offline wallet in the same or different crypto currency for long term storage or security.
Convert Them Into Cash
To withdraw funds in Pesos or other fiat currency, you will need to transfer the balance to an exchange that allows conversion and withdrawal.
Once the transfer is completed you can convert the Bitcoins to Pesos and withdraw the Peso funds from Coins.ph through bank transfer, money transfer agents (such as Cebuana Lhuillier) or selected cardless ATM’s.
Coins.ph require you to open a verified account with them. Basic verification simply requires you to send them a copy of your ID and will allow up to P400,000 per year in transactions. Further verification will allow up to P400,000 per day.
There are other exchanges available in the Philippines that deal with wider ranges of altcoins but it is outside the scope of this article to cover them.
Is It Right For Me?
It does sound complicated, but it is actually quite a straightforward process once set up.
There are however a few things that you should be aware of when deciding whether you want to start accepting crypto currency payments:
- Although rapidly growing, the crypto currency market is still very small compared to fiat currencies. At times this can create daily exchange rate volatility of 10% or more. Some timing can be required to get the best conversion.
- For each conversion or transfer between wallets there is an additional transaction fee charged. This money is used to pay the network of ‘miners’ who essentially record and validate transactions on the block chain. You can generally choose what fee you are willing to pay from just a few pesos to a bit more. Paying higher fees will result in faster processing of your transaction;
- As with any other currency there is an exchange rate ‘spread’ when you convert. You can offset this by setting the ‘Uplift%’ option under the CoinPayments.net payment processor settings. Setting an uplift allows you to add a small percentage increase to the converted crypto currency price.
- We think that this is an exciting opportunity to increase conversion rates of direct bookings. However please note that this is just our opinion and we are not offering any financial advice in this article. Please ensure that you do your own research before deciding whether or not crypto currency is right for you.
Which Crypto Currencies Should I Accept?
CoinPayments.net allow you to accept payments in over 80 different crypto currencies. Obviously if anything this is just too much choice for guests. Our suggestions are:
- Start out by just accepting Bitcoin to keep things really simple and minimise currency conversions.
- If you are happy with the idea of timing exchange rates, then also add Bitcoin Cash (BCH), Ripple (XRP), Ethereum (ETH) and Litecoin (LTC) as options.
- Or if you are happy with all things crypto, roll your own! Any coins you enable in CoinPayments.net will automatically be enabled for guests when booking.
So How Do I Get Started?
Just open a free account at CoinPayments.net and send us the login details. We will set everything up for you so that payments will be received into your wallets there
NB: If we are currently taking deposit payments on your behalf, then guests are already being offered this payment option.
If you click on the links to CoinPayments.net or Coins.ph in this article to sign up we will receive a very small commission. This will have no effect on the fees that you pay so all clicks are appreciated!
Please note that crypto currency markets can be very volatile. This article in no way constitutes financial advice. You are advised to do your own research before deciding if this is an option you would like to offer your guests.