As restaurant technologies evolve and change, restaurant owners need to consider each new trend and determine if it is right for their business. Right now, restaurant owners are faced with an adoption decision as it relates to accepting crypto payments.
More and more restaurants are accepting crypto as payment. From large chains to single locations, restaurants are testing new digital payment options. Now it’s time for restaurants to decide if crypto payments are at a tipping point or just a passing trend.
To help you decide what is right for you, here are some considerations for determining if accepting crypto payment is right for your business and if so, how you can get started.
What Are Crypto Payments?
Crypto payments are a way for customers to make purchases using cryptocurrency as their payment method. Cryptocurrency is a form of virtual or digital currency. Unlike the U.S. dollar, cryptocurrency is not managed by a central authority, and it has no physical form. It is entirely digital. There are hundreds of types of cryptocurrencies, and the most well-known and frequently used cryptocurrencies include Bitcoin, Ethereum, and Dogecoin.
With the right technology, restaurants can offer crypto as an advanced payment method and allow customers to use digital currency as payment at check-out. But should you?
Should You Accept Crypto Payments at Your Restaurant?
In early June 2022, Chipotle announced that they would begin accepting crypto payments at all of their locations across the United States. Chipotle customers can now pay with over 98 digital currencies. Other large, well-known brands such as Shake Shack, Subway, Burger King, and Starbucks have offered or still offer some form of digital currency payment options.
More and more brands see crypto as a technology that isn’t going anywhere. They are embracing or testing the option of accepting crypto payments at their restaurants. But, is it worth it? Let’s look at some of the pros and cons of offering crypto payment at a restaurant.
Pros of Crypto Payment
- Offer customers more ways to pay
- Limit credit card payment processing fees
- Provide fast and easy transactions
- Differentiate your brand
- Attract early adopter customers
- Prevent chargebacks
- Settle payments faster
Cons of Crypto Payment
- Minor tech setup
- Potential learning curve for staff and customers
- Evolving regulations
- Tax and accounting implications
How to Accept Crypto Payments at Your Restaurant
If you decide you want to start accepting crypto payments at your restaurant, you can get what you need through Lavu’s restaurant POS system.
Lavu recently announced a new partnership with Verifone. The partnership enables Lavu POS systems to seamlessly integrate with Verifone’s FLEX payment solution, including its Advanced Payment Method platform which accepts crypto payments. Through the Lavu POS, restaurants can accept Bitcoin, Ethereum, Litecoin, Dogecoin, Shiba Inu, and several USD stablecoins using prominent crypto wallets, PayPal, Venmo, WeChat Pay, Klarna, Swish, and Vipps.
With the Lavu POS, customers can easily pay with crypto.
Unlike some other POS devices that accept crypto, Lavu’s POS system doesn’t require customers to download apps. Through a form of contactless payment, customers simply open their digital wallets and tap their phone on the receiver to pay.
Saleem S. Khatri, CEO of Lavu recently described the system to The St. Pete Catalyst, “It’s super clean and super easy. A very elegant solution, and there’s a lot of reasons why restaurants like it.”
Lavu makes it as easy as possible for restaurants who are ready to accept crypto payment to get started.
Why Now Is a Good Time for Crypto Payments
“What we found is, the crypto thing has just taken off. That’s what is really resonating with people,” Khatri said. Lavu recognizes the popularity of crypto payments and wants to make it easy for restaurants to serve their customers in new ways. But, crypto payments are also about helping restaurants save money.
Lavu’s partnership with Verifone to offer additional payment options is a way to help restaurants keep more money in their business. Credit card processing fees are often the highest expense a restaurant has next to rent. Restaurants with $100,000 in monthly sales can spend around $3,000 in credit card fees.
Crypto payments offer a way to avoid costly credit card processing fees.
While there are still fees associated with crypto, they are lower than typical credit card processing fees, which can take 3-8% of every payment.
“We’re doing all of these things to help restaurants offset the staffing shortages and high costs with inflation,” said Khatri. In addition to Lavu’s cash discount program, offering crypto payment is another way to give restaurants options to cut down on expensive credit card processing fees.
Related: Cash Discounting for Restaurants: A Guide to Getting Started
Start Accepting Crypto Payments at Your Restaurant
There are pros and cons to accepting crypto at your restaurant, but if you find you are ready to embrace this technology, Lavu is here to help.
If your restaurant already uses Lavu’s iPad POS system, you’re ready to start accepting crypto payments. Talk to Lavu about how we can set your system to start accepting various cryptocurrencies.
If you’re looking for an option for accepting crypto payment at your restaurant, schedule a demo to see how Lavu’s POS system can expand your payment processing options and offer over 200 more POS system features that help you run your restaurant.
Learn more about Lavu’s options for accepting crypto payments. Schedule your demo of our iPad-enabled POS system today.