Crypto Payment Solutions for Business Leaders: How to Expand Reach and Revenue

Contents

Introduction

The Business Case for Crypto Payments

How Do Crypto Payments Increase Revenue for Payment Companies? 

Key Steps for Payment Companies to Implement Crypto Payments 

Overcoming Barriers to Crypto Adoption 

How to Maximize the Revenue Potential of Crypto Payments 

Conclusion

Introduction

With over 560 million crypto owners globally, businesses looking to attract new customers and grow can no longer ignore the value of crypto services like payments. Crypto payments have been around for a while — the first recorded payment was on May 22nd, 2010 when computer programmer Lazlo Hanyecz paid for two pizzas with 10,000 BTC. Their popularity is increasingly growing as more fintech companies, brokers, eCommerce and retail stores, crypto exchanges, and traditional payment providers incorporate them into their services. Crypto payments allow these service providers to meet evolving customers' needs and unlock new revenue opportunities, both of which are vital for survival in today's competitive business landscape.

However, adopting crypto payments can be daunting. A Deloitte survey of 2,000 senior executives revealed that 89% consider integrating crypto with existing financial infrastructure a leading challenge in adopting crypto payments. Beyond that, businesses also have to navigate the evolving yet still ambiguous regulatory landscape, deal with security and scalability concerns, and mitigate crypto volatility risks. Despite these challenges, the Deloitte survey found that 85% of executives were still willing to invest in crypto payments.

In this ebook, we look at the value of adopting crypto payments, specifically exploring how they can increase companies' revenue. We also provide a step-by-step process for implementing crypto payments and discuss how to overcome adoption barriers and maximize revenue potential.

The Business Case for Crypto Payments

If you've considered adopting crypto payments, there's no better time than now. Here's why:

Recent Developments in Legislation

The legal landscape for cryptocurrency payments and cryptocurrencies in general, has evolved quite drastically over the past few years as more governments recognize the value of these digital assets. Financial regulators from many parts of the world are actively working to provide friendlier and more transparent frameworks, creating opportunities for businesses to adopt crypto.

Some of the most notable developments include:

• The creation of a new "Crypto Task Force" in the U.S.: The Securities and Exchange Commission, under acting Chair Mark Uyeda, has launched a dedicated crypto task force to help develop a clear regulatory framework for crypto assets.
• The implementation of the Markets in Crypto-Assets (MiCA) Regulation in European Union (EU) countries: This framework provides clear guidelines for businesses that handle crypto assets to promote fair markets across the EU.
• The establishment of the Virtual Assets Regulatory Authority (VARA) in the United Arab Emirates (UAE): The regulatory body provides a comprehensive virtual asset framework in the region to limit ambiguity in the crypto space.

Thanks to these developments, the cryptocurrency market may be more stable in the coming years, limiting payment companies' regulatory risk.

Market Opportunity

People are increasingly adopting crypto — 220 million unique addresses interacted with a blockchain in September 2024 (the highest recorded transactions in crypto history), 67% of current crypto owners plan to increase their holdings, and 14% of those who have yet to invest in digital assets plan to do so in 2025.

By adopting crypto payments, you open your business up to the rapidly growing market segment of people looking to expand their crypto investments or buy digital assets for the first time. That's not all. You also have the potential for global reach since crypto payments eliminate currency exchange barriers and facilitate more cost-effective cross-border transactions.

Further, they allow you to tap into unbanked and underbanked populations by allowing them to transact without relying on traditional banking systems.

Revenue Growth Potential

Crypto payment services can attract more customers and create new revenue-generating opportunities for your business. They're becoming a top choice for many merchants and crypto owners because of their low transaction costs — traditional payment processor fees can be as high as 1.5% to 3.5% per transaction, while crypto payment charges range between 0% and 2%, making crypto popular with cost-sensitive customers.

They're also popular because they facilitate faster settlements and cross-border efficiency. This can attract tech-savvy consumers and younger demographics who value frictionless solutions, increasing your revenue.

Staying Competitive in the Industry

Many payment companies have jumped on the crypto bandwagon and are now facilitating crypto payments for their customers. Major players like MasterCard and Visa have partnered with exchanges and white-label technology providers like AlphaPoint to offer crypto cards, and payment services providers (PSPs) such as PayPal and Stripe have developed crypto initiatives that allow users to convert digital assets to fiat currencies. Additionally, brands like Ferrari, Rolex, McDonald's, and Microsoft now allow customers to pay with Bitcoin, Ethereum, and other cryptocurrencies.

Faced with such developments, you need to adopt crypto payments to remain competitive. Otherwise, you may lag behind and lose customers to more adaptive competitors in your industry.

How Much Does it Cost to Accept Crypto Payments?

The cost of accepting crypto payments depends on whether you want to build your infrastructure yourself or use a proven solution (like AlphaPoint). If you go the in-house route, you can incur the following:

• Over $200,000 on hiring a development team
• $500,000 to $2 million on wallet development and security
• $1 million to $2.5 million on the development and deployment of a minimum viable product (MVP)
• $100,000 to $500,000 on compliance
• $500,000 to $5 million on liquidity and payment processing infrastructure

On top of that, you have to budget for annual security and system update expenses, which can be as high as $250,000 to $1 million. This would bring the total estimated cost to anywhere between $2 million and $6.5 million or more. Additionally, you'd have to wait one to two years to launch your service.

Using a white-label solution is more cost and time-efficient. With AlphaPoint, for example, you'll only incur a set-up fee of $25,000 to $100,000 (covering everything from liquidity and settlement integration to compliance and security services) and a subscription fee of between $5,000 and 50,000+ (billed quarterly, bi-annually, or annually), bringing your total estimated cost to $110,000 to $700,000. Further, it'll only take you one to six months to accept crypto payments.

What Types of Businesses Benefit from Crypto Payments?

Crypto payments can benefit a wide range of businesses across different industries. Some top choices include:

• Fintechs: Crypto payments can open up new revenue opportunities.
• Crypto exchanges: Accepting crypto payments facilitates seamless deposits, withdrawals, and trading experiences.
• Traditional payment companies: Service providers like PayPal and Visa can stay competitive and meet customers' evolving needs.
• eCommerce and retail stores: They can benefit from faster settlements and lower transaction fees.
• Game and entertainment: Allowing crypto in-game purchases can enhance user experiences.
• Online betting: Crypto provides anonymity and minimizes transaction costs, which can be attractive for gamblers.
• Travel and hospitality: Accepting crypto payments can attract tech-savvy tourists seeking convenient payment solutions.
• Cannabis businesses: Crypto payments can help users maintain anonymity.
• Nonprofits: Accepting crypto donations can help them reach global donors.

Many businesses have already incorporated crypto payments into their processes. Examples are:

• Home Depot
• American Movie Classics (AMC)
• ExpressVPN
• CheapAir
• Dallas Mavericks
• Twitch
• Intuit
• Stripe
• PayPal
• Shopify
• Humble Bundle

How Do Crypto Payments Increase Revenue for Payment Companies?

One of the most significant benefits of introducing crypto payments is that they have the potential to increase revenue. Here's how:

Attracting New Customers

Offering crypto payments can attract tech-savvy individuals and young demographics like Millennials and Gen Zs, who are increasingly investing in digital assets. They may be drawn to companies that facilitate crypto payments because they allow them to conveniently use their assets in everyday transactions.

Crypto payments can also attract gaming, betting, or e-commerce businesses looking to streamline purchases or bets for customers with crypto assets.

Expanded Reach to Global Markets

Crypto payments enable access to global markets by eliminating some of the barriers associated with traditional payments. They don't rely on banking infrastructure and can, therefore, attract populations with limited access to conventional financial services across the globe.

Moreover, they eliminate the need for currency conversions and facilitate near-instantaneous settlements, which can appeal to individuals or companies conducting cross-border transactions.

Transaction Fees

Crypto payment services open up a new revenue stream for your business. You can charge transaction fees for facilitating payments, adding to your revenue from standard services.

However, it's worth noting that one of the biggest draws to crypto payments is its low fees — 77% of merchants say this is one reason they accept crypto as payment. So, don't charge too high fees, as this can counter their attractiveness.

Increased Transaction Volume

Crypto payments are a more affordable, convenient, and faster payment solution than traditional alternatives like bank transfers. They can, therefore, attract more individuals and businesses to your platform, driving up transaction volumes. The higher your volume, the more revenue you gain from transaction fees.

Reducing Chargeback Risks

Chargebacks are a costly challenge for merchants that accept traditional credit card payments — they can incur as much as $15 to $50 per incident, depending on their PSP. Crypto payments help solve this problem by eliminating the risk of transaction reversals.

This can be an excellent selling point for payment companies targeting business owners, as it not only eliminates chargeback-related losses, potentially improving their bottom lines, but also minimizes the administrative burdens associated with transaction dispute resolution.

Offering Value-Added Services

Crypto payments can be the foundation for more than just transaction processing. They can help companies generate additional revenue by allowing them to expand their offerings to include other services like crypto-to-fiat conversions, wallet integrations, or custody solutions. This can be lucrative because some merchants may need assistance converting digital assets and securely managing them.

Increased Revenue Streams

Payment companies that facilitate crypto payments unlock revenue opportunities beyond transaction fees. They can also participate in activities like lending and staking or even tailor new financial offerings to their customers' needs and demands, increasing their revenue and positioning themselves as industry leaders.

Lower Operational Costs

Traditional payment networks rely on multiple intermediaries to facilitate transactions. So, they need infrastructure that connects key players to complete transactions. This isn't necessary with blockchain technology — the tech allows peer-to-peer transactions, significantly reducing infrastructure expenses.

It also reduces operational costs by limiting the need for fraud prevention measures. Because all transactions on the blockchain are immutable (they can't be altered), they are less prone to fraud than standard transactions.

The lower your costs, the better your bottom line.

Brand Differentiation

As competition in the payments industry rises, companies must differentiate themselves to stand out and attract customers. Facilitating crypto payments can go a long way in achieving this.

While crypto payment adoption has grown over the years, it's still relatively new. Supporting it now can position your company as an innovative leader.

Other Payment Options to Explore

Companies can further differentiate themselves and attract customers by offering complementary solutions alongside cryptocurrency payments. Some options worth exploring include:

• Stablecoins: These are cryptocurrencies pegged to stable assets like fiat currencies and gold. They may attract individuals and merchants looking for a little more stability, broadening your user base.
• Loyalty programs: Crypto-based loyalty programs involve tokenized incentives instead of traditional points. They are an innovative way to reward merchants and customers and can help you increase customer retention.
• Micropayments: Facilitating micropayments can attract merchants in industries that involve small transactions, like gaming and entertainment, potentially expanding your reach and increasing transaction volumes.
• Central Bank Digital Currencies (CBDCs): These are digital versions of countries' currencies typically issued by central banks. While they have not gained as much traction as cryptocurrencies and stablecoins, CBDCs could promote frictionless crypto-to-fiat transactions, attracting some customer segments.

Key Steps for Payment Companies to Implement Crypto Payments

Now that you know the value of cryptocurrency payments, the next step is to integrate them into current processes. Here's a step-by-step guide to help you do that seamlessly:

Step 1: Assess the Business Need

The last thing you want is to invest in a service that doesn't meet your target audience's needs. So, start by evaluating your customer base and market in general to determine the demand and potential benefits of offering crypto payment options.

A proper assessment will help you choose the right crypto payment features. For example, if your customers prioritize instant settlement over anything else, you can work on getting infrastructure that facilitates this.

With proper research, you can also determine which complementary services to offer alongside crypto payments. For example, if your target audience is primarily comprised of gaming or entertainment companies, you can prioritize micropayments over other complementary solutions to meet their need for small transaction capabilities.

Step 2: Choose the Right Crypto Payment Provider

When you know what to focus on, compare your payment provider options to find the best fit. Consider the following factors before you make your choice:

• Fees: Find a provider with a transparent pricing structure that balances affordability and value.
• Reputation: Look up any potential provider's history to ensure they are trusted and reliable.
• Scalability: Pick a provider whose technology can grow with you. It should be able to handle high transaction volumes as your needs grow.
• Supported digital assets: To appeal to a broad customer base, ensure your provider supports a wide range of assets, including Bitcoin, Ethereum, and stablecoins.
• Integration capabilities: Confirm API availability for seamless integration with existing systems and platforms.

AlphaPoint is a top choice for many payment companies. We've been in the crypto industry for over 11 years and have provided infrastructure for businesses of all sizes during this period, allowing them to take advantage of the many opportunities in this space. Our technology is secure, scalable, affordable, and supports numerous digital assets, making it one of the best options in the market.

Step 3: Ensure Compliance and Security

Once you get the right infrastructure, assess your jurisdiction's regulations and implement compliance measures, such as integrating Know Your Customer (KYC) and Anti-Money Laundering (AML) solutions into your system. Partner with your crypto payment infrastructure provider and an experienced legal team to ensure you comply with all requirements.

It's also vital to ensure platform security. Implement robust security measures like encryption and two-factor authentication (2FA) to protect transactions and customer data. Again, a provider like AlphaPoint can help with this.

Step 4: Build an Optimal User Experience

A frictionless, secure payment experience drives customer adoption and satisfaction. So, prioritize an optimal user experience.

One way to elevate customer experiences is to incorporate tokenization through stablecoins. Stablecoins help manage crypto volatility, facilitate faster settlements, and enable seamless crypto-to-fiat conversions. This can boost satisfaction among risk-averse customers and those looking for transaction efficiency.

Enabling crypto payments via credit and debit cards can also improve user experiences. These are familiar payment methods, so they can make it easier for customers to adopt crypto payments and enhance accessibility.

Step 4: Train Teams and Educate Customers

Your new system will only be valuable if your employees know how to use it. Offer hands-on training on how to leverage the technology to make sure they know how to process payments and confidently answer customer questions. Ensuring operational readiness can streamline adoption and encourage new customers to give your system a try.

Customer education is also important since not everyone may be familiar with crypto payments. Provide step-by-step guides explaining how to pay with crypto and accept payments. This can reduce adoption hesitation and build trust in your system.

Step 5: Launch and Promote

Conduct rigorous testing before you launch your system to promote smooth operations once you do. You can test your solution by simulating transactions and assessing its speed, asking employees to try it and offer feedback, or running a beta test with a small group of customers and asking for their opinions. Once you get your report or feedback, address all highlighted issues before marketing your solution.

When it's ready, run an omnichannel marketing campaign using social media, email marketing, and press releases to inform customers about your new offering. Also, offer incentives for adoption (such as limited-time discounts and gifts for early birds) to attract users, and set up customer support to help tackle their issues efficiently — this is vital for customer retention.

Overcoming Barriers to Crypto Adoption

The road to crypto adoption can be challenging. You may face barriers such as regulatory hurdles, misconceptions about crypto, and operational and security concerns.

That said, these challenges are manageable. Here's how to overcome them to promote smooth processes:

Regulatory Compliance

While countries have made great strides over the years, crypto regulations are still in the development phase in many parts of the world. The lack of regulation clarity can slow adoption, particularly among institutions, as it may leave them unprotected in case of market crashes or fraudulent activities.

The development of crypto regulations can also be a challenge, as they open up payment providers to compliance risks, which could result in legal penalties.

One way to overcome the regulatory compliance challenge is to leverage stablecoins. Some jurisdictions, such as New York (through the New York State Department of Financial Services), have clearer regulations around stablecoins than other cryptocurrencies. Therefore, they can offer a more predictable and structured way to process crypto payments.

It's also important to engage legal professionals with experience in crypto regulations in your region. They can offer guidance, limiting your risk of non-compliance.

Security and Fraud Prevention

As the value of cryptocurrencies continues to grow — the global cryptocurrency market cap is $3.31 Trillion — so do security and fraud threats. In 2023 alone, the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center (IC3) estimated a loss of $5.6 billion from the 69,000 complaints it received.

To overcome this challenge, you must implement robust security measures such as 2FA, encryption, and fraud detection protocols. These measures help safeguard transactions and customer data, which can help build trust.

A stablecoin integration can also help. Many stablecoins operate under strict financial regulations and are more compliant with requirements like KYC and AML, making them less susceptible to fraud.

Stablecoins are also an excellent addition because of their stability. They minimize exposure to volatile assets and lower the risk of price fluctuations during transactions. This can reduce the risk of disputes between customers and merchants — they can maintain their stability during transactions so that neither party feels like they've paid more or accepted less than the value of the product or service being offered.

Consumer Education

There are many misconceptions about crypto payments. Some people believe they're not secure, others think they're only good for illicit activities, and others believe they're a fad.

To attract customers, you have to debunk such misconceptions and address concerns about risks like security. That's where customer education comes in.

Offer guides, host webinars, and create marketing materials that paint the true picture of crypto payments. Be sure to highlight blockchain technology's inherent transparency and security features, reputable brands that have incorporated crypto payments, and the growing adoption of crypto by governments, businesses, and individuals.

Also, build trust by addressing concerns over price volatility and offering solutions. You could educate customers about stablecoins and their relatively low risk as a crypto payment option.

Operational Challenges

To facilitate crypto payments and ensure smooth operations, you must invest in dependable technology infrastructure and integrate it with existing payment systems. So, your choice of a payment provider is crucial.

Choose infrastructure that offers not only secure wallets and backend infrastructure but also extensive integration capabilities and support for stablecoins to facilitate smooth workflows and simplify crypto-to-fiat conversion.

How to Maximize the Revenue Potential of Crypto Payments

With the heightened interest in digital assets, crypto payments can be one of your biggest earners. Here are some ways to grow your profits as a payment provider:

Offer Comprehensive Crypto Solutions

This helps you attract customers. When you offer end-to-end solutions such as crypto-to-fiat conversion, multi-currency support, and seamless merchant integrations, you eliminate the need for multiple service providers, enhancing users' convenience.

Comprehensive crypto solutions also mean more revenue streams, as you can charge fees for each service. For example, you can charge transaction fees for crypto-to-fiat conversions and SaaS fees for integrations.

You can also expand your revenue by supporting stablecoins. They introduce all kinds of earning opportunities, such as transaction fees, remittance service fees, and lending and interest fees, which can increase your profits.

Set Competitive Transaction Fees

Affordability is a key consideration for many customers. In fact, it's one of the reasons why crypto payments are so appealing to merchants. So, maintain competitive pricing to encourage adoption and increase transaction volume.

This isn't to say that you should charge next to nothing — balance affordability (for your customers) with profitability (for your business). One way to optimize pricing is to base fee structures on transaction volume. For example, you can charge high-volume merchants lower fees because of their high revenue potential.

You can also base your fees on competitors' pricing — match their fees or charge a little lower (if possible) to position your company as one of the top choices for cost-sensitive customers.

Build Partnerships and Ecosystems

Partnerships with crypto exchanges, wallet providers, or fintech companies allow you to offer comprehensive services cost-effectively, which can drive revenue growth. They also give you access to new customer pools, expanding your market reach. This can result in higher transaction volumes and, consequently, revenue.

Introduce Value-Added Services

Offering services beyond payment processing opens new income streams, maximizing your revenue potential. Some of the value-added services you can offer include:

• Custody solutions: Help customers securely store and manage their crypto assets.
• Staking: Allow users to earn interest on their crypto holdings and take a small percentage of their rewards.
• Reporting: Offer premium monitoring and reporting tools to help users track their transactions.
• Stablecoin access: Allow users to convert cryptocurrencies into stablecoins to minimize the impacts of market volatility.

These value-added services also boost customer satisfaction, which can encourage loyalty and increase customer lifetime value (CLV).

Market and Educate

Run omnichannel marketing campaigns to inform your target audience about your new offering. Also, invest in education programs to teach customers how to leverage it for faster and more cost-effective transactions.

This can drive adoption and increase trust and confidence in crypto payments, resulting in higher transaction volumes and revenue for your company.

Integrate Crypto Payments and Boost Revenue with AlphaPoint

Crypto payments are revolutionizing how consumers and merchants complete transactions. They are faster, more affordable, and more convenient and, therefore, are set to continue growing in popularity as crypto adoption increases.

Implementing crypto payments now can position your business as an innovative leader and help you stand out from other payment companies. It can also help you attract new customers, expand your global reach, and boost transaction volumes, increasing your total revenue. Of course, these benefits are contingent on your offering's effectiveness and efficiency. So, ensure you partner with the right infrastructure provider.

Having been in business for over 11 years, during which we've served companies of all sizes, AlphaPoint is uniquely positioned to help you navigate the crypto payments niche. We provide tried-and-tested infrastructure that comes complete with everything from compliance integrations to fraud monitoring and security tools, allowing you to go to market quickly and cost-efficiently.

Beyond providing crypto payment infrastructure, we also offer expert advisory services on blockchain integration, marketplace customization, tokenization, and regulatory compliance to help you navigate the crypto landscape seamlessly.

With us in your partnership ecosystem, you can:

• Focus entirely on your customers: We'll do all the technical and operational heavy lifting.
• Scale your operations: Our technology is fully customizable and scalable, allowing you to meet customers' growing needs.
• Offer multi-asset support: We support thousands of cryptocurrencies, stablecoins, tokens, and fiat currencies to help you meet diverse customers' needs.
• Maintain regulatory compliance: AlphaPoint offers pre-built KYC/KYT/AML integrations as well as licensing, regulation, and policy guidance to promote compliance.
• Seamlessly secure transactions and user data: We offer encryption and fraud detection tools to help maintain your system's integrity.

Ready to implement crypto payments? Schedule a demo today to learn how AlphaPoint can help!