Paolo Preto
Paolo is helping people understanding Bitcoin, showing them how it can help their current lives as well as defending them from future inflation.
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Introduction
You have finally decided to accept bitcoin in your business, and everything is ready: the Lightning Network wallet is set up for receiving payments, your employees know how to use the read-only version of the wallet to receive payments on your behalf, the Point of Sale (PoS) has been configured with store products and updated monthly, and you already know how to manage the bitcoin accounting from customers. If you don't know how to do it, watch this tutorial:
What is the Problem
If everything has been going well so far, then what's the problem? Here it is: you may notice that customers don't buy bitcoins at your store! Most likely, many people don't even know what bitcoin is, some others might be familiar with it but have never used it for a daily purchase, and only a small part of the population knows about it well, yet still doesn't use it for their expenses.
Why? Simple: people tend to spend the currency they consider weaker! The same reason that makes you want more bitcoin to protect yourself against the inevitable devaluation of all other currencies, encourages others to spend any other currency before selling their bitcoins.
Here, in this tutorial, we will try to take advantage of that small minority and make them more likely to spend their bitcoins at your store, while you receive them.
Proposals
Let's explore some possibilities that might encourage customers to pay with bitcoin. We'll outline three: a fixed discount policy, an all-time high price policy, and an additional offer policy.
Fixed Discount Policy
The merchant offers a fixed discount equal to a percentage of the total value of all merchandise or a selection of it. This policy can be implemented in two main variations:
Value Nominal Merchandise Discount
This is an arbitrarily set discount on the nominal value of the merchandise, which is the simplest and most direct form of discount. The discount will only apply if the payment is made in bitcoin. Let's say the discount applied is 10%. If a pair of pants costs $50 paid with a debit card, the price in bitcoin would be equal to
50 - (50 × 0,1), that equals to 45 USD.Reduction of a Finite Quantity
In this case, the idea is to separate from the price a tax or an external cost that is normally included in the final price but does not apply or should not apply to bitcoin payments. The customer is usually familiar with the impact on the price of this tax or fee and will understand the discount policy.
This type of discount is more effective for physical stores, especially for products subject to high taxes; by
high tax we mean an aliquot above 10% added to the nominal cost of the good. In cases where the rate is lower and the product is simple and inexpensive, it's unlikely that customers will notice the difference, making it less likely for them to choose bitcoin.An Example
All European countries are subject to a consumption tax, called in English "Value-added Tax", hereafter VAT. This tax was invented in France in 1954, and by 1970 it had already begun to spread in the early European Community; by 2020 it had spread to much of the globe.
For this example, let's assume we're in Europe, within a country where the VAT rate is 20% for any category of goods. We are at a shoe store, and let's say a pair of leather shoes costs $120 if paid with a debit card.
The merchant could apply a discount equal to the VAT rate for bitcoin payments, so the pair of shoes would cost
120 / 1,20 that equals to 100 USD. This example shows one of the simplest and most immediate taxes; however, you can use any other tax or fee that is known in your jurisdiction to make the incentive more effective.All-Time High Price Policy
In this policy, the merchant accepts bitcoin payments and offers the customer the highest exchange rate ever between bitcoin and a certain currency, usually USD or EUR. It's essential to note that there is no reason not to use the exchange rate of your local currency, even if it differs from the two mentioned.
This policy is generally used for online retail. The drawback is that most merchants don't have their own websites to sell products online; you will need to rely on an e-commerce platform that supports this policy.
Additional Offer Policy
In this policy, instead of applying a discount, the merchant offers an extra benefit when the customer pays with bitcoin. The price remains the same, but the perceived value increases. This strategy is useful in cases where:
- You don't want to change your pricing list.
- You want to avoid accounting complications related to discounts.
- You want to make the incentive more emotional than numerical.
Some examples include:
- A food store adding a free product (e.g., a can or snack). A beauty center offering an additional free service.
- A movie theater giving away a gadget, drink, or upgrade seat.
- An electronics store adding an accessory to the primary product.
The principle is simple: at equal prices, customers who pay with bitcoin receive more. In most cases, the customer could still buy that something extra later, but the free benefit might be a unique item not available otherwise. This approach can be very effective in retaining existing bitcoin users and sending a positive message without reducing margins as would happen with other forms of discounts.
Informing Customers
Of course, creating policies is not enough; you must also inform customers about them. If your customers don't know that they can pay with bitcoin or don't perceive a clear advantage in doing so, they won't choose this option. Your goal is to let customers know that the time to use bitcoin is now at your store.
Communicating effectively means being visible: information should be clear, simple, and present everywhere it makes sense – on the point of sale, website, social media, direct communication channels with customers. The staff must also be prepared to explain, in a friendly tone, that paying with bitcoin is possible and advantageous.
Every adopted policy (discount, offer, or exchange rate advantage) should be presented as an opportunity for the customer, not a technical detail. The message must be immediate: "Pay with bitcoin and get more."
The method of implementation is left to the merchant, but briefly, here are some available options:
- In-store signage (windows, cash register, shelves) Stickers or labels on windows
- Social media notifications, newsletters, website announcements
- Direct dialogue with customers when possible Advertising from bitcoin influencers who speak the same language as your target customers
BTC Map
In any case, it's always a good practice to ensure that your business, if it has a physical location, is present and up-to-date on BTC Map. Most bitcoin users are familiar with this tool, and almost all those who have spent bitcoin in physical stores have checked at least once to see which places accept them. If you want to learn how to add your store to BTC Map or want more information, watch this tutorial:
Managing Accounting
If you're wondering how to manage the accounting of bitcoins just earned, whether you've applied one of the discount policies or not, this is the tutorial for you:
Conclusion
The policies we have seen – fixed discount, all-time high price, additional offer – are just a few of the possible strategies, all giving concrete value to those who choose to pay with bitcoin. Incentivizing its use means contributing to building a more free, transparent, and resilient economy.
Finally, keep an open dialogue with your customers: listen to feedback, observe what works and what doesn't, and adjust your policies over time. With the right approach, you'll attract more customers willing to pay with bitcoin. Good luck!
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This tutorial has been written by Paolo Preto
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This tutorial has been proofread by PaoloFoti
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The original content has been translated by AI, but human review is necessary to ensure its accuracy.
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