Accept Bitcoin in a retail store
This is how you accept Bitcoin in your retail store, restaurant or for your service.
You run a business or a restaurant? You are a craftsman or provide a service and customers are standing in your store and would like to pay with Bitcoin?
In this post, we explain how you can accept Bitcoin payments in your retail store. The various options are presented and the providers through which you can obtain a Bitcoin PoS terminal.
The abbreviation PoS, stands for Point of Sale and means point of sale. A PoS terminal is a payment terminal used to settle cashless payments at points of sale. A Bitcoin PoS terminal is accordingly a Bitcoin payment terminal for processing Bitcoin payments.
If you already accept cashless payments for card payments in your store, you are familiar with the basic principle of this form of payment processing.
For Bitcoin payment processing, it is even much easier. There are solutions for small businesses that do not yet expect large sales and are available in a few minutes. Likewise, there are professional solutions for larger stores with a higher sales expectation that include an independent hardware solution.
We present these different options of Bitcoin PoS terminal solutions here:
Mobile Wallet as Bitcoin PoS Terminal
If you have only a small group of potential users and expect a small volume, it is recommended that you ask your customers to send the payment directly to your wallet.
Thus, the easiest way to accept Bitcoin in stores is to install your own Bitcoin wallet on your smartphone. When a customer wants to pay with Bitcoin, they pick up their smartphone, enter the amount in Euros on the wallet app and show the customer the QR code so they can send the payment.
This is the fastest and easiest way to accept straightforward Bitcoin payments.
However, this requires that the store owner is on site with his own smartphone and takes the Bitcoin into his own possession.
Any mobile wallet is suitable for this form of Bitcoin acceptance.
If it turns out that demand for the bitcoin payment option is growing, a business smartphone with a bitcoin wallet may be a solution that employees can then use to process payments.
Mobile Merchant Wallet
For something more professional, there are solutions that you can run on a retired smartphone. The smartphone can then be used by all employees to accept Bitcoin payment. Payment acceptance can be used by all employees. The employees should not be able to dispose of the collected Bitcoin funds and only the boss should be able to do so.
This can be done with the help of an xpub key. The xpub key generates an infinite number of public Bitcoin addresses that can be shown to customers for payment. Access to the private key, which is required for sending payments, remains under the control of the boss.
To learn how to create an xpub key using Electrum Wallet, see: “Electrum Wallet Setup and Connect to BTCPay Server“. In this article you will learn how to generate an xpub key. Instead of storing the xpub key on the BTCPay server, the key is stored in the payment app.
As a trader, I deposit a Bitcoin address with the Bitpocketprovider, to which my Bitcoin are sent. Instead of a single Bitcoin address, I can also store the xpub key.
During payment, the invoice amount is entered in the Bitpocket app. Based on the current exchange rate, the app calculates the amount and monitors the receipt of payment.
The Bitcoin will then be forwarded directly to the Bitcoin address deposited at the beginning. Thus, BitPocket is especially suitable for stores where several employees work at the cash register and accept Bitcoin payments. The employee can only accept Bitcoin payments, but cannot make any payments themselves.
With the BitPocket app, the store owner is credited with its equivalent in Bitcoin.
With the solution of the provider Inapay, the merchant receives the equivalent value in euros.
After the app is installed on the smartphone, the address and bank details of the merchant are stored.
For example, if the end customer pays for €50 in Bitcoin, the merchant will receive the same amount credited to their business account.
In addition to mobile solutions via app, web-based solutions are also offered.
Web based Bitcoin PoS terminal
A web-based Bitcoin PoS terminal is accessed as a normal web page via a smartphone or via a pad.
In advance, the store owner stores the products with descriptions and prices.
If an end customer wants to pay in the store, the store owner calls up the corresponding website via his smartphone or an iPAD.
The store owner can select the products that the customer has bought or consumed. A shopping cart function calculates the total amount. Optionally, an allowance can also be specified. The invoice amount is calculated, the end customer can still tip, the bitcoin amount is calculated and transferred to the merchant’s bitcoin address after successful payment.
An example of a web-based POS terminal is a tea store implemented with BTCPay’s solution.
You can find a detailed creation of your own Bitcoin PoS Terminal based on BTCPay Server at: “Web-based PoS Terminal“
Bitcoin PoS Terminal at BTCPay
Hardware Bitcoin PoS Terminal
A hardware Bitcoin PoS terminal is a standalone hardware for in-store cashless payment processing. Most store owners use a similar terminal for credit card and debit card payments. These terminals come in a wide variety of forms and functions, including for accepting cryptocurrencies.
The terminals differed mainly in the scope of cryptocurrencies that can be accepted with the terminal. What these devices have in common is that the trader does not have to worry about the current Bitcoin rate or about settlement.
The euro amount is communicated to the terminal, the end customer pays with the cryptocurrency of his choice, and the merchant receives a credit in euros to his bank account.
Bitcoin PoS terminal are offered by various manufacturers. You can find an overview of the different providers at Coinpages: Bitcoin PoS Terminal Provider
The POS terminals can either be purchased or rented for a monthly fee. In addition, a turnover-based transaction fee is charged.
Payment to the trader is made by weekly settlement to the trader’s own bank account.
The provider iQ CashNow offers its terminal for purchase for €399 and a transaction fee of 1% of the turnover.
The provider C-Novation Pay offers terminals from €415,- to €597 in the different versions. The cheapest device supports cryptocurrencies as well as card payments and Apple and Google Pay possible.
Nothing is disclosed about monthly fees or the amount of individual transaction fees.
The supplier Walledooffers a POS terminal for €499,- plus VAT and shipping costs. No other transaction fees are charged. Conversion and payment is made to the bank account. In addition to accepting Bitcoin payments, the Walledo POS solution also offers the possibility to sell Bitcoin.
The end customer gives cash to the merchant and receives a Bitcoin voucher. This voucher can then be redeemed for Bitcoin on the Walledo homepage.
The provider Salamantexsupports the cryptocurrencies Bitcoin, Stellar, Dash, Ethereum, Litecoin and Ripple with its terminal. The terminal has an interface to various POS systems. The price and transaction fees are not openly communicated. Currently Salamantex is mainly active in Austria and is preparing a market entry for Germany.
In addition to the hardware and the settlement of bitcoin sales in euros or CHF, the various providers also offer marketing support. Merchants who accept Bitcoin receive stickers for the retail store, training for employees, and ensure promotion in Bitcoin directories such as Coinpages.