Whenever I pay somewhere, I try to use bitcoin. I usually fail, but sometimes we at least get into a discussion about how to actually do it. In that case, it seems like there are a lot of options and I usually can't give a simple answer.
I start at the top left by asking if the business has multiple people accepting payments. Depending on the answers, I continue to wander through the diagram until I arrive at a final recommendation.
Of course, it's not black and white like this. Sometimes the conversation is more complex. Basically, I then distinguish between these four groups of tools:

Custodial wallets

In most cases, we choose a simple wallet first, on which one can easily and without cost try it out. After a while, it is no problem to move to a more sophisticated solution. For several years now, Wallet of Satoshi has been my favorite to start with.

Wallet of Satoshi

  • 🟒 Great controls
  • 🟒 POS terminal
  • 🟒 Low fees
  • 🟒 Local language
  • 🟒 Expression in local currency
  • 🟒 Option to receive funds to a simple address
  • 🟒 Possibility of accepting NFC chips - cards, rings, etc.
  • 🟒 Multiple people can use one account - You can have the same wallet on your computer (mac)
  • 🟒 Easy email backup
  • πŸ”΄ You trust a third party - you can lose funds
Bitlifi works similar. Its big advantage and disadvantage is that it is tied to a phone number. This allows you to pay people who haven't even downloaded the app yet. On the other hand, you lose privacy. Bitlifi can practically only be used by one person because of this, and it also doesn't have advanced options like using NFC chips.

Wallets with self-custody

If you don't want anyone to be able to deprive you of your funds, you can use a wallet such as the Phoenix wallet.

Phoenix

  • 🟒 You are in control of your money, no one can easily rob you
  • 🟒 Easy to use
  • 🟠 Each recipient has an independent account
  • πŸ”΄ High fees
  • An alternative may be the Breez wallet. It has slightly lower fees while offering more privacy. It also allows you to create items for easier payment entry in addition to a traditional POS terminal. On the other hand, it can be less clear and downloads more data. Both of the mentioned wallets work practically for one user only and are more expensive to use than the previous options.

Friends server

Financially, using a friends node or LNbits server usually works out a bit better. This solution offers virtually unlimited possibilities.

LNbits

  • 🟒 Many users and their management
  • 🟒 Many different applications
  • 🟒 API for communication with other applications
  • 🟒 Can be connected to Zeus or Blue Wallet
  • 🟒 Allows to manage Bleskomat
  • 🟒 Can create QR codes for individual items
  • 🟑 Usually reasonable fees
  • 🟠 Unclear reliability
  • 🟠 It's a bit too much work to set it up
  • πŸ”΄ Trusting a third party - you may lose resources (if running on someone else's server)
If you don't want to play with LNbits, you can use a dedicated service like Hydranode, Confirmo, or Qerko to receive bitcoin. They will help you with deployment, you'll have a good overview of everything and various staff permissions for reasonable fees.

Own node

Umbrel

For the heartthrobs, there is the most challenging option. On your own node, you can then also run the aforementioned LNbits application.
  • 🟒 You don't trust a third party
  • 🟒 Everything is possible
  • 🟒 Lowest fees
  • 🟒 Good overview of everything - different powers for staff
  • πŸ”΄πŸ”΄ High initial cost - hardware and especially your education
  • πŸ”΄ Time-consuming maintenance
Here's another summary of the mentioned options side by side. I don't know the universally best solution, but each of the variants has good uses.
Custodial walletsNon-custodial WalletsFriends NodeOwn Node
ExamplesWallet of Satoshi, BitlifiPhoenixLNbitsUmbrel
Difficulty of setupπŸŸ’πŸŸ’πŸŸ πŸ”΄πŸ”΄
User ManagementπŸ”΄πŸ”΄πŸŸ’πŸŸ’
CustodyπŸ”΄πŸŸ’πŸ”΄πŸŸ’
FeesπŸŸ’πŸ”΄πŸŸ πŸŸ‘

When the internet is down

As a backup, it's always a good idea to have a physical QR code printed at the same time with the so-called LNURL or at least remember the payment address. For these purposes, it's also not a problem to use a wallet with a third-party escrow service like Wallet of Satoshi - still only for small amounts of satoshis. If for some reason your internet goes down or your cell phone goes dead, you can still accept bitcoin payments with no problem.

Alternatives

There are many other technical options that make sense to pursue. But since I don't use them on a daily basis, I don't usually recommend them. For example, I think Coinos, Mutiny, Blixt, Zeus, BTCPay Server, or Citadel node are all worth considering.

Don't take fiat or you'll go crazy

I generally try to talk dealers out of converting bitcoin to fiat. Usually, at least initially, bitcoin payment volumes are not large and the real-world consequences of volatility are negligible. If someone doesn't want to hold bitcoin, they can get a Bleskomat into the business and allow people to exchange. After a while, though, merchants are usually glad they kept the funds in bitcoin and don't have as much need to convert back to fiat.
If you're worried about the complexity of accounting when a company holds bitcoin, you can use one of the services mentioned above or not put bitcoin in the company at all and handle it as a private person.
I originally wrote this article for a Jednadvacet, Czech bitcoin community
Check also Blink wallet https://www.blink.sv/. It's ex Bitcoin Beach wallet. Used in many communities around the world. Also custodial like WOS but open source and they plan to make it non custodial. Instead of email it's tied to a phone number. It has useful options for merchants like custom lightning address, point of sale/cash register that can be accessed from any browser with internet connection, has stablesats (synthetic usd for hedging low timeframe btc volatility), can print a paycode to exhibit in store, etc. Also NFC support in beta. Very simple to use.
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Actually, I would recommend a service that converts to fiat.
This is going to be waaay more amenable to a legally operated business that has a fiat based accounting system.
Once they have taken the (significant) leap to accepting Bitcoin payments, that is when you can begin to work on their transition to just retaining Bitcoin. Both at once is just too much for 95% of businesses.
@darthcoin - I'm ready and cowering!
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It depends on the kind of business, I think. A low margin high turnover business would probably need the fiat more readily, until the supply chain is sorted, but a tradesperson for instance, may be able to do a Β£250 job and just sit on the coin without needing to convert. Gotta tailor the approach to the individual.
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you r tight, however, initially you are talking about a very low volume of transactions (less than 1%), so not necessary to convert
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Great writeup! I think I'm going to use some of your suggestions for my not so successful merchant converting efforts.
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Great writeup!
I would recommend just start with a simple wallet and accept lightning payments.
Now I’m also starting eith umbrel and lnbits on top. It was not difficult.
I think lnbits is like the wordpress with a lot of plugins.
A small business can do a lot with lnbit.
If they are technical they can have their own node. But if they want to ousource it they could have somebody running their node inhouse for them.
Would you also consider advicing them that?
Have your own node but letting somebody else running it for you? Backups, technical difficulties?
I see that running your own lightning node is not for everybody. I posted something about this and I got a lot of feedback.
Running your own node and managing liquidity is a profession. A business. Most small businesses cannot do this full time.
Woould you also consider how many employees? Small businesses with 5 employees is lexx complex than a business with 100 employees.
It aslo depends if the business has a service like an online business or a physical business.
A consultant with an online business with a wordpress site is maybe simpler than a restaurant.
Lnbits seems to have many options.
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And what do you think about Muun Wallet?πŸ€”
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It doesn't support native lightning. Only via submarine swaps. So I wouldn't recommend Muun.
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But when depositing Bitcoin Lightning to Muun Wallet and then withdrawing that Bitcoin Lightning from Munn Wallet there is no Swap (using only Lightning to deposit and withdraw).
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I'm not sure right now.. But when I was testing it it was unpredictable for me. I will have a look again.
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It would be good to know that aspect, so that is clarified technically and we all learn.
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Thanks for the writeup. Great work! I would recommend a Sovran Pro (of course ;) ). Maintenance is almost non-existent, everything a store needs is already installed, and it is fully sovereign. https://sovransystems.com.
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Thank you for taking the time to write this great article.
I have experimented with a few different methods over the last couple of years here's somethings to consider.
When a customer orders online from one of my websites it ONLY excepts Bitcoin as payment. I'm using IBEXPAY, it batches following day to a wallet of my choice. This is done auto pilot. Repeating I do NOT want to accept credit cards, I ONLY want payment in SATS or on chain.
Link to IBEX
I have been made fun of for not accepting credit cards online. That's ok I'm long term Bitcoin and actually feel if I don't do this (just use Bitcoin in a circular way on a daily basis, I'm delaying building in the Worldwide eco system of Bitcoin).
If the business person like myself has day to day transactions are B2B there are usually many line items, as well as sizes, colors, styles etc. and some many are exported out of the USA so there is the need for adding HARMON codes as and other paperwork.
Sometimes I have to send a more formal invoice zaprite works fine for this maybe customer needs to send wire transfer. This is a link to zaprite
https://zaprite.com/product You can select which payment method(s) you want to accept.
Because my goal is to as much as possible work with REPEAT B2B customers and have the benefit of receiving SATS to work with from a circular perspective.
In regards to occasional B2C small orders in person IBEXPAY works great on a tablet, phone etc.
Other issues a merchant B2B and/or B2C should plan for in advance is
  1. Their return policy and paperwork flow.
  2. The need for a complete phone number especially when using FedEx, DHL etc.
  3. Baby steps, I strongly encourage making test products and test, test, test making sure what the customer sees or does not see on any receipt, order confirmation, stated terms and conditions etc.
Aloha Rich
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I'm of the opinion that custodial solutions get too bad of a rap.
Custodial is bad for long term storage of significant amounts. But for temporary short-term usage I think custodial solutions are a risk worth taking if it saves you time and effort.
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Yes, and custodial options also make it easier to use multiple POS devices linked to one account / wallet, and you get clearer accounting. That I believe is still a major selling point for companies, as some wallets have a transaction history that you can't export, or which doesn't show exact invoiced amounts in fiat. You can't yet run a business on crypto like that in most countries. The KYC aspect upon withdrawal is sadly a necessity for these platforms to be able to operate at all. And, I am pretty sure custodial solutions are well aware of the flak they receive for their downsides. We're still in a transitory period!
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true and i would add to that, custodial will be the majority if mass adoption happen imho. otherwise people would not use banks and have fiat under the pillow. it is just the way it is.
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