What: Big brands are adopting crypto payments, but, before brands follow, they need to consider several factors, from how to handle transactions to the risks involved.

Why it is important: Fashion and luxury sellers may be feeling some peer pressure right about now to jump on the bandwagon and start taking cryptocurrencies as payment. But there are costs in time and money involved, so despite the hype, companies need to decide what's right for their business and their brand before they jump in.

Many big brands have turned to companies such as BitPay or CoinGate to simplify the process for them. These payment gateways can integrate into the brand’s online checkout or point-of-sale system in stores, allowing the merchant to accept any coin they’re set up for and handle transactions from start to finish. A shopper typically scans a QR code to make a payment. The payment gateway accepts the cryptocurrency directly, validates it, converts it to fiat currency, and deposits the funds in the merchant’s bank account.

Brands have different options for handling payments, including gateways that do all the work for a fee, but there are still risks and legal issues to consider. Unlike a credit card, a crypto wallet can be anonymous, raising the threat of illicit transactions.

Brands are still subject to reporting large and suspicious purchases. Importantly, they need to ensure they’re not taking payments from sanctioned individuals or enabling money laundering.

Still, some brands may want to associate themselves with crypto as part of a longer-term web3 strategy. Allowing crypto payments can be an effective way of attracting the crypto audience, plus, the group of shoppers wanting to pay with crypto does look to be expanding.

What brands should know about accepting Cryptocurrency