The professionalization of digital currency transactions necessitates strong systems for record-keeping and verification, resulting in the creation of crypto invoicing and simplified payment confirmation.
Adding crypto checkout and invoicing to regular business is a big step forward for digital payments. As more people use digital assets for things other than investing, businesses are finding ways to easily accept and manage payments in cryptocurrencies.
This new idea is very important for making international transactions easier, lowering costs, and reaching a new group of customers. Join us in this guide as we explain the main ideas behind using cryptocurrency for checkout and the financial systems that support it, such as the important role of a crypto wallet. Let’s start!
What Is Checkout with Crypto?
Checkout with crypto is the process of paying for goods or services with a digital currency like Bitcoin or Ethereum instead of a credit card or bank transfer. The last step in a retail or service transaction is when the payment is made on a blockchain network.
When a merchant accepts payment, they use a special payment gateway that changes the item’s real-time fiat price into the amount of cryptocurrency they need.
To allow customers to pay with cryptocurrency, checkout must include certain payment processors that can create a unique payment address and QR code for each customer.
These services protect against the risk of fluctuations by locking in the exchange rate for a short time (like 15 minutes) and, most importantly, they often settle the funds in the merchant’s preferred fiat currency or stablecoin.
This keeps the business safe from the cryptocurrency market’s quick price changes. Crypto checkout is a quick and modern alternative to older payment systems because the transaction is so easy. You just have to scan a code from a crypto wallet.
How Do I Pay with Crypto at Checkout?
It’s surprisingly easy to pay with crypto at checkout, especially if you use a modern payment gateway and a crypto wallet that is set up correctly. The process makes sure that both the customer and the merchant get a secure confirmation of payment that can be verified on the blockchain.
When you check out, these are the usual steps to pay with crypto:
- When a customer goes to the payment screen of an online store, they can choose to pay with crypto and then choose which cryptocurrency they want to use (like Bitcoin, ETH, or a stablecoin).
- The payment gateway shows a secure payment invoice that shows the exact amount of cryptocurrency needed, a unique payment address (the recipient’s wallet address), and a QR code that can be easily scanned on a mobile device.
- The customer uses their phone to open their crypto wallet app, scan the QR code, and say yes to the transaction. The wallet automatically sends the exact amount of cryptocurrency to the merchant’s unique address.
- The payment gateway sees the incoming transaction on the blockchain and, once the network confirms it, sends the customer a proof of payment and tells the merchant that the order can be processed.
Because of the low fees and quickness, this method is becoming more and more popular for international transactions. This makes the crypto checkout process competitive with more traditional methods.
What Is a Checkout Transaction?
A checkout transaction is the transfer of value that happens when a customer completes a purchase. This can happen with cash or through a process like cryptocurrency checkout.
It is the moment when the merchant gives the customer ownership of the goods in exchange for payment. In a digital world, the transaction is recorded and checked by the right financial network.
When you use crypto checkout, the checkout transaction is a record on the blockchain. The amount, the sender’s address, and the recipient’s address are all part of the transaction that proves payment.
Before the order is completed, the merchant’s payment processor will check the blockchain for this transaction to make sure that the payment has been sent and confirmed.
One of the best things about using digital currencies is that they keep a permanent record of the checkout transaction that is easy to see. This helps with accounting and settling disagreements. The same idea of clear logging is what makes crypto invoicing work.
Do I Need a Crypto Wallet?
Yes, for sure. You need a crypto wallet to do anything in the digital asset economy, like check out with crypto, send a crypto invoice payment, or get money.
The wallet is not a real place where money is kept. Instead, it is a software program or a physical device that safely stores the public and private cryptographic keys you need to access and control your digital assets on the blockchain.
You can’t access your cryptocurrency or sign the digital transaction needed to approve a payment without a crypto wallet. The wallet makes the private key, which is the only way to move money.
When you pay with crypto at checkout, your wallet uses cryptography to sign the transfer. This tells the blockchain that you agree to move money from your address to the merchant’s address. So, the crypto wallet is the most important way for you to access the whole world of cryptocurrency checkout.
Do I Need a Wallet for Every Cryptocurrency?
No, you don’t usually need a different crypto wallet for each and every cryptocurrency. Modern cryptocurrency wallets are multi-asset and multi-chain, which means that a single wallet app or hardware device can securely store the keys for dozens or even hundreds of different types of digital assets.
With one crypto wallet, you can handle most major cryptocurrencies and tokens, including all tokens that run on a common platform like Ethereum’s ERC-20 standard.
For instance, a single wallet can hold Bitcoin, Ethereum, and a number of stablecoins, which is very helpful for people who often have to pay with crypto at checkout. The most important thing is that the wallet can work with the currency’s blockchain network.
The single wallet’s private key is used to sign transactions on all supported chains. This makes it easier to handle crypto payments and invoices. Some new or very specialized blockchains may need their own wallet, but this is not the case for most popular currencies.
Which Crypto Is Best for Payments?
When choosing the best cryptocurrency for payments, you have to find a balance between stability and network efficiency, especially when it comes to smooth crypto checkout and invoicing. The best choice must lower the risk of price fluctuations and make sure that payment confirmation happens quickly to make sure that business goes smoothly.
Here are some important things to think about when picking the best cryptocurrency for payments:
- Merchants who use crypto invoicing usually prefer stablecoins like USDC and USDT because their value is usually pegged to the US dollar, which means there is no risk of the value changing between the quote and payment time. This stability gets rid of the main business problem that comes with the high price swings of volatile currencies.
- If you choose a currency that changes a lot, the network must have fast speeds and low transaction fees so that payments can be confirmed quickly and easily.
- In this case, high-speed networks are better than older, congested networks like standard Bitcoin, which can have high fees and slow payment proof.
- No matter what digital asset you choose, the transfer’s safety and speed are the most important things for any payment system to work.
In short, the best cryptocurrency for a payment system for businesses is one that either keeps its value stable (using stablecoins) or lets people make rapid and cheap transactions (through efficient Layer 1 or Layer 2 solutions). This makes the checkout process easier and more pleasant for both buyers and sellers.
What Is a Crypto Invoice?
A crypto invoice is a formal, itemized request for payment that tells the person how much they owe in a specific cryptocurrency, like Bitcoin, Ethereum, or a stablecoin.
It serves the same purpose as a traditional invoice, which is to keep track of the goods or services that were provided. However, the payment information is completely digital and not traditional.
Businesses need this kind of invoice to keep track of money they make from digital assets in a legal and accurate way. A crypto invoice must have all the usual legal and business information, such as the names of the buyer and seller, the date, and a description of the services.
It must also have certain crypto-specific parts:
- The Crypto: The exact coin or token you need, like 0.5 ETH or 1,500 USDC.
- The Exchange Rate: the value of the fiat currency and the rate used to figure out how much crypto was given out at the time (which is often very important for tax purposes).
- The Address for Payment: A one-of-a-kind, unchangeable receiving wallet address made just for this transaction.
- Due Date for Payment: A time limit (because the exchange rate can change) before it runs out.
Creating an invoice in crypto makes it easier to get digital payments by giving both parties the clarity and audit trail they need. This is why it is often directly linked to the checkout with crypto process.
How Do I Create an Invoice for Crypto?
Specialized payment gateway software or dedicated crypto invoicing services make it easier to make an invoice for crypto.
Traditional invoicing only needs a fiat amount, but making a crypto invoice needs to be connected to market data in real time to figure out how much the digital asset is worth. This is how most people make a formal invoice in crypto.
First, you need to use a separate crypto payment processor that supports cryptocurrency checkout. Then fill in the business details, such as the item description, the buyer’s information, and the total price in real currency, like $5,000 USD.
Then, choose the exact cryptocurrency you want to get. The system will automatically use the current market rate to change the amount of fiat money into the amount of cryptocurrency needed.
The platform makes a separate, unique wallet address just for this transaction. This makes sure that the payment is properly tracked and matched with the invoice.
The platform makes a digital invoice that has the calculated amount of crypto, the unique payment address, and a QR code that can be scanned. The client then gets this invoice and uses their crypto wallet to make the transfer. This process makes sure that the crypto invoice gives a clear and reliable payment instruction.
What Is Proof of Payment in Cryptocurrency?
In the world of cryptocurrency, the proof of payment is not a paper receipt or a bank statement. It is the transaction itself, which is stored on the blockchain forever and can be checked by anyone.
Proof of payment is closely related to the fact that the decentralized ledger is open to everyone and can’t be changed. When a payment is made (like through crypto checkout or a crypto invoicing payment), there are two main parts that make up the proof of the transfer:
- The Transaction Hash (TxID): This is a one-of-a-kind alphanumeric code that is given to each transaction on the blockchain. It serves as the digital receipt.
- The Blockchain Record: Anyone can see the details of the transaction, such as the exact amount sent, the sender’s address, the recipient’s address, and the time of the transfer, by entering the TxID into a public blockchain explorer.
This digital, verifiable record is proof of payment that can’t be denied, and it doesn’t require a third party to vouch for the transfer, which makes it more transparent than regular bank wire transfers.
How Are Crypto Transactions Verified?
The blockchain’s main security feature is a decentralized consensus mechanism that checks crypto transactions. This process makes sure that the ledger is correct and that the sender has the money and that the transfer is real.
This verification system is very important for services like crypto checkout to work. There are a number of steps in the verification process that lead to confirmation of payment.
The sender starts the payment with their crypto wallet, and the transaction is sent out to all the nodes on the network. The network nodes (miners or validators) check the transaction against the whole history of the blockchain to make sure that the sender’s wallet has enough money and that the private key signature is valid.
A block is made up of verified transactions. The consensus mechanism (for example, Proof-of-Work or Proof-of-Stake) processes the block. Once most of the network agrees on the block, it is cryptographically sealed and added to the chain for good.
After a certain number of additional blocks (confirmations) have been added, the transaction is officially confirmed. This gives more and more proof that the transaction cannot be undone. This decentralized verification is the last proof of payment for all transactions, even those that come from a crypto invoice.
How Do I Get a Crypto Statement?
To get a crypto statement, you need to combine the blockchain’s public, verifiable data into a format that is easy to read for tax and accounting purposes. A crypto statement is different from a regular bank statement because it shows activity across many addresses and platforms instead of just one.
For money that is held and traded on centralized exchanges or platforms, these companies can usually make a transaction history or statement that shows all deposits, withdrawals, trades, and fees for a certain time period.
These statements are usually set up in the same way as regular bank records, and they are the easiest way to keep track of what happens in that one custodial environment. You need special accounting software or blockchain explorers to keep track of money in a self-custody crypto wallet.
The user enters their public wallet address(es), and the software collects all of the incoming and outgoing transactions from the blockchain, figures out the cost basis, and makes a detailed report that is often used for tax purposes.
How Do I Confirm a Crypto Transaction?
You can only get final confirmation of payment for a crypto transaction by using the blockchain explorer for the network that was used. The confirmation is not a message from a bank; it is proof that the transaction has been added to the blockchain. This step is very important for stores that let customers pay with cryptocurrency before they get their goods.
The normal way to check a transaction is:
- Get the Transaction Hash (TxID) from the sender or the company that processes your payment. This is your receipt in digital form.
- Go to a web-based blockchain explorer that works with the cryptocurrency you’re interested in (for example, Etherscan for Ethereum or a Bitcoin explorer).
- Put the TxID into the search bar of the explorer. The explorer will show the transaction details right away, including the status.
- The “Confirmations” count is the most important number. Once a certain number of blocks (usually 3 to 6, depending on the network and how much risk you are willing to take) have been added after the block that contains your transaction, the transaction is finished and very safe. You will get a clear confirmation of payment once this number is reached.
This open, decentralized process gives you proof of payment right away that can’t be disputed.
Wrapping Up
Whether you are a freelancer sending your first crypto invoice or a shopper navigating a digital checkout, you need a platform that makes the process feel like second nature. Jeton is that all-in-one solution.
We offer a single account for all your payments, allowing you to unify your finances by adding, sending, or exchanging all currencies in one app. Trusted by over 1 million users, Jeton bridges the gap between the blockchain and your daily needs.
You can unify your finances, moving money across 25+ countries in Europe using over 50 payment methods for consistently fast and safe transactions. The Jeton Card allows you to spend your earnings via contactless payments while maintaining total authority through instant card freezing and custom spending limits.
Join over 1 million happy users who have already upgraded their financial experience. Download the Jeton App via the App Store or Google Play and sign up today!
