So, you’ve decided to integrate Bitcoin payments into your business. That’s fantastic news! While you might assume that setting up a Bitcoin wallet is the next step, it’s not always necessary.
Whether your business needs a Bitcoin wallet depends on several factors. For instance, you may not need a wallet if you work with a PSP that offers fiat settlements—where Bitcoin is automatically converted into traditional currency.
However, if fiat settlements are not offered or you prefer to handle Bitcoin directly, you would need a Bitcoin wallet.
How to know if your business needs a Bitcoin wallet
The answer largely depends on two factors:
- Regulations in your jurisdiction
- Settlement options provided by your Payment Service Provider (PSP)
Businesses that don’t need a Bitcoin wallet
If your jurisdiction or industry doesn’t allow businesses to handle cryptocurrency directly, or your PSP gives you the option to receive fiat settlements, you can accept Bitcoin payments through PSPs like ElenPAY that don’t require a Bitcoin wallet.
ElenPAY offers fiat settlements, converting Bitcoin into traditional currency before transferring the funds to your business bank account. This ensures compliance with regulations while allowing your customers to pay with Bitcoin.
Businesses that need a Bitcoin wallet
In jurisdictions or industries where businesses can handle cryptocurrency directly, or when working with a PSP that doesn’t offer fiat settlements, you will need a Bitcoin wallet to receive and manage Bitcoin payments.
This wallet will store and access the Bitcoin received from customers, and the fiat conversion will need to be handled by yourself.
How ElenPAY offers a wallet-free payment experience
For businesses operating in heavily regulated industries like iGaming, navigating the complexities of accepting Bitcoin payments can be challenging. In many jurisdictions, restrictions around handling cryptocurrency make it difficult to use Bitcoin as a payment method.
ElenPAY solves this by providing a seamless, wallet-free payment experience. Here’s how it works behind the scenes:
- Dedicated Lightning Wallet: ElenPAY holds a Bitcoin Lightning (L2) wallet assigned to each client. This wallet is used to process and manage all crypto transfers related to the client’s transactions.
- Simplified Operations: Businesses don’t need to interact with Bitcoin directly. ElenPAY handles all crypto-related processes, including receiving payments, managing the wallet, and ensuring secure storage.
- Fiat Settlements: Clients request a settlement, and ElenPAY converts the Bitcoin into fiat currency. The funds are then transferred directly to the client’s bank account, ensuring compliance with regulations and eliminating the need for the client to manage cryptocurrency.
This wallet-free approach is not only compliant with iGaming regulatory requirements but also simplifies operations for businesses, allowing them to accept Bitcoin payments without any of the technical or logistical complexities.
Setting up a Bitcoin wallet: A step-by-step guide
For businesses that can handle Bitcoin payments directly, setting up a Bitcoin wallet is an essential step. While the specific steps may vary slightly depending on the wallet you choose, here’s a general guide to get you started:
1. Choose your wallet type
Decide between a custodial wallet (managed by a third party) or a non-custodial wallet (which gives you full control of your funds).
2. Download and install the Bitcoin wallet
Visit the official website or app store to download the Bitcoin wallet app. Make sure to use only official sources to avoid scams or malicious software.
3. Set up your account
Follow the wallet’s onboarding steps, which may include creating a username and password or verifying your identity. For non-custodial wallets, you’ll need to secure your private keys or seed phrase during this step.
4. Secure your wallet
Use strong, unique passwords, enable two-factor authentication (if available), and store your backup key or seed phrase in a safe, offline location to keep your Bitcoin wallet secure.
5. Connect your wallet to your chosen PSP
If you are accepting payments through a Bitcoin PSP with no fiat settlements option, you may need to integrate your wallet with their system. This typically involves copying your wallet’s receiving address and pasting it into the provider’s setup interface
6. Test with a small transaction
Before accepting customer payments, test your setup by sending or receiving a small amount of Bitcoin. This ensures everything works smoothly.
ElenPAY’s recommended Bitcoin wallets
When choosing a Bitcoin wallet, it’s essential to consider the needs of your business or your customers. The ideal wallet provides secure storage, seamless transactions, user-friendliness, Lightning Network compatibility, and also compatibility with your other payment systems.
These are our top wallet recommendations, tailored for both businesses and customers:
- Strike: Custodial wallet available for businesses in the US and Europe. Known for its simplicity and fiat integration.
- Speed Wallet: Custodial wallet available in the US and the rest of the world, providing reliable transaction handling.
- Blink: Custodial wallet, not available in the US, offering ease of use and straightforward functionality.
- Wallet of Satoshi: Custodial wallet, not available in the US, designed for quick and easy Lightning transactions.
- Phoenix: Non-custodial wallet with global availability, providing full control over your funds and seamless Lightning support.
- Aqua: Non-custodial wallet available globally, offering a sleek interface and robust security.
- Breez: Non-custodial wallet with global reach, ideal for businesses looking for a simple yet powerful wallet for Bitcoin Lightning transactions.
- Muun: Non-custodial wallet, globally available, supporting both on-chain and Lightning transactions for ultimate flexibility.
How to get started with Bitcoin payments using ElenPAY
Getting started with Bitcoin payments through ElenPAY is easy. The process is designed to make accepting Bitcoin as simple and efficient as possible. Here’s how it works:
1. Create an Account with ElenPAY
Get in touch with our team and complete the onboarding process. This involves providing your business details and verifying your identity through a Know Your Customer (KYC) process to ensure compliance with regulations.
2. Set Up Your ElenPAY Dashboard
Once your account is approved, you’ll gain access to the ElenPAY dashboard. From here, you can manage payment settings, monitor transactions, and request fiat settlements with ease.
3. Integration With Your Payment Systems
Choose the integration method that best suits your business needs—plugin, API, or widget. Our expert team will guide you for smooth implementation, ensuring that Bitcoin payments are seamlessly incorporated into your existing systems.
4. Start Accepting Bitcoin Payments
ElenPAY handles all the technical aspects of accepting Bitcoin payments. Your customers pay in Bitcoin, and ElenPAY manages the crypto transfers through their Lightning wallet infrastructure.
5 Request Fiat Settlements
When you’re ready to access your funds, simply request a settlement through the dashboard. ElenPAY will convert Bitcoin into fiat currency and transfer it directly to your bank account.
6. Monitor Your Transactions
Use the ElenPAY dashboard to track payments, settlements, and transaction details in real-time. This allows you to maintain full visibility over your operations.
If you’d like to start accepting Bitcoin payments for your business, get in touch with our team for any technical questions or request a personalized demo.
Setting up a Bitcoin wallet FAQs
Custodial wallets are managed by a third party, offering convenience and ease of use. Non-custodial wallets give you full control of your funds and private keys, prioritizing security. For businesses, custodial wallets are often better for simplicity, while non-custodial wallets suit those needing advanced control.
No, customers need a Bitcoin wallet to make payments. The wallet is essential for storing their Bitcoin and sending it to your business. However, businesses don’t always need a wallet to accept Bitcoin payments. With solutions like ElenPAY, the PSP manages the crypto transactions, allowing customers to pay with Bitcoin seamlessly while the business receives fiat settlements without handling cryptocurrency themselves.
The best digital wallet for Bitcoin payments depends on your business needs and the needs of your customers. Choosing a wallet based on security, region, and Lightning Network support are some of the key points to have in mind. For global reach and full control, non-custodial options like Phoenix or Muun are ideal. For simplicity and ease of use, custodial wallets like Strike or Wallet of Satoshi are excellent choices.
Leave a Reply