What is a Bitcoin Point of Sale?
This illustration photograph taken on July 19, 2021 in Istanbul shows a physical banknote and coin imitations of the Bitcoin crypto currency. Photo by Ozan KOSE / AFP
The number of local and online stores that allow customers to pay with Bitcoin is increasing by leaps and bounds. New, big brands accept cryptocurrency payments. Although most crypto-fueled merchants take Bitcoin payments, they do it differently. That’s because several approaches enable businesses to accept crypto payments.
A Bitcoin point of sale is a prominent solution, allowing businesses to accept payments via this cryptocurrency. When a company uses a Bitcoin point of sale, customers can spend their crypto funds to purchase services and goods without converting them. Thus, you can buy Bitcoin on a platform and use it to pay for services and items. An online point is straightforward to deploy and does not attract additional expenses. So, if you are planning to trade Bitcoin, you may want to consider using a reliable trading platform such as Bitsoft360
Bitcoin Point of Sale Definition
As hinted, a Bitcoin point of sale is a cryptocurrency payment gateway solution. It enables customers or clients to pay for services and goods with Bitcoin from their crypto wallets and smartphones. This option provides greater convenience because invoice creation takes seconds, and a customer uses it to pay. Also, a point-of-sale gateway is simple and doesn’t require complex infrastructure.
A Bitcoin PoS provides a safe way to accept cryptocurrency and pay. Also, it enables a merchant to customize invoices and create new ones for clients. Today, Bitcoin PoS provides an excellent option, especially for small brick-and-mortar enterprises that don’t want to process many payments per second.
Additionally, online stores benefit from setting up Bitcoin’s point of sale due to the cryptocurrency’s borderless nature. Also, Bitcoin’s transactions don’t have geographic limits, making crypto PoS an ideal option for eCommerce stores that target customers from all places. Using a crypto point of sale terminal to create an invoice for a global customer takes a few seconds.
How a Bitcoin Point of Sale Works
A Bitcoin point of sale involves three steps to work:
- You enter the fiat currency amount you want to pay.
- Select the cryptocurrency the customer wants to pay.
- Auto-generate a QR code.
The customer uses their smartphone to scan the QR code and completes the payment of the specified amount using a desktop or mobile crypto wallet. Some point-of-sale solutions involve costly devices to process the payments by scanning the customer’s crypto debit cards. However, such a method can be expensive and unaffordable for medium and small-sized enterprises. Also, it’s pretty inconvenient for individuals without Bitcoin debit cards or cell phones with an NFC chip.
Advantages of a Bitcoin Point of Sale
A Bitcoin point of sale provides an excellent off-ramping opportunity for crypto investors. For years, off-ramping to cryptocurrency has required exchange into traditional money, limiting Bitcoin’s spending potential.
Most places where cryptocurrency enthusiasts wanted to spend Bitcoin required them to convert it, often waiting for days from crypto exchanges to process the transaction. And the worst part was that customers couldn’t compare rates. However, Bitcoin’s point of sale eliminates the hassles by allowing users to spend their crypto faster.
Direct crypto spending also prevents using credit and debit cards, which attract higher fees. Since crypto payments don’t have a centralized location for processing transactions, crypto spending provides additional security and privacy.
Moreover, the possibility to pay with crypto makes online and international purchases easier. Cryptocurrency’s universality allows customers to purchase services or products from merchants worldwide without incurring conversion fees. And this promotes the global economy and better access to services and products.
Final Word
A Bitcoin point of sale is a convenient electronic system or tool for collecting crypto payments. Unlike traditional PoS terminals that require sophisticated infrastructure and physical devices, a Bitcoin point of sale is web-based.
