How to accept Bitcoin payments at your business
Take Bitcoin in person or online, alongside the cards and cash you already accept. This guide covers why businesses do it, which wallets to use, and what HMRC expects.
Why accept Bitcoin payments?
- Lower payment costs. Lightning payments typically cost a small fraction of percentage-based card processing fees, so you keep more of each sale.
- Fast settlement. Lightning payments complete in seconds. On-chain payments take longer because they require transaction confirmations.
- Direct control over your money. With a self-custody wallet, payments go straight to a wallet you control rather than sitting with a payment company. In return, you are responsible for keeping your wallet backed up.
- No card-style chargebacks. Bitcoin payments cannot be reversed through a card-network dispute. This does not remove potential fraud or scams, and refunds and consumer rights still apply.
- More customers. Welcome locals, visitors and online shoppers who prefer to spend Bitcoin. It adds a way to pay without replacing the ones you already offer.
- Ready for agentic commerce. AI agents with their own Bitcoin wallets can already pay for digital goods, services and API access. Accepting Bitcoin online lets them buy from you, with a compatible checkout or API.
Choose a wallet you control
We recommend wallets that let you hold your own keys or minimise trust in a third party. Some tools, like ecash wallets, trade full self-custody for speed and simplicity - treat those like a till float and move takings to a self-custody wallet regularly. Avoid services where a company holds your Bitcoin long-term.
In person: Lightning wallets
Lightning is the practical choice at the till. Enter the price in pounds, show the customer a QR code, and the payment arrives in seconds.
- Phoenix is a self-custodial Lightning wallet from ACINQ, developers of the eclair Lightning implementation. You hold the keys, and Phoenix manages the Lightning channels behind the scenes. Check its fees for adding capacity to receive larger payments.
- Wallet of Satoshi is one of the simplest wallets to use. You keep your keys.
- Minibits is an ecash wallet using the Cashu protocol, with fast, private Lightning payments. Ecash is custodial by design: the mint you choose holds the Bitcoin backing your balance. It is still in beta.
- Noah is built on Ark, a newer Bitcoin layer-2, with Lightning payments built in. It is trust-minimised: you can move your funds back onto the Bitcoin blockchain yourself, even if the Ark server stops cooperating. It is still in beta.
- Zeus is a self-custodial Lightning wallet built for merchants. It has a point-of-sale mode, works with Square, and ZEUS Pay lets you receive payments without the app being open. You can run it with an embedded node on your phone or connect it to your own Lightning node. Open source.
- Numo is an Android point-of-sale app that allows Cashu ecash payments by tapping the customer's phone against yours, provided they are using a compatible wallet. It also supports Lightning invoices that can be paid with any Lightning wallet. Like Minibits, treat it as a till float and move takings to a self-custody wallet regularly.
Online shops and bigger setups: BTCPay Server
BTCPay Server is a free, open-source payment processor that you run yourself or through a hosting provider. It takes on-chain and Lightning payments straight into your own wallet, with no middleman and no processing fees. It connects to online shops such as WooCommerce and Shopify, and has a built-in point-of-sale app for multiple tills and staff. Hosting still has a cost.
Accept Bitcoin without holding it
If you would rather not hold Bitcoin, sell what you receive on a regular schedule, such as weekly, through an exchange. Its value in pounds can change between receiving and selling it, and any gain may be taxable.
Tax and record keeping
A general summary of HMRC guidance, not tax advice. Check your situation with an accountant.
- Sales paid in Bitcoin count as normal income. Record the pound value of each payment when you receive it, and include it in your trading profits as if the customer had paid in pounds.
- That value is your cost basis. If you later sell or spend the Bitcoin for more than it was worth when you received it, the increase may be subject to Capital Gains Tax, or Corporation Tax if you trade as a company. A fall in value can count as a loss.
- VAT applies as normal. If you are VAT registered, VAT is due on the pound value of the sale at the time of the transaction.
- Keep records of each payment: the date, the amount of Bitcoin, its value in pounds and how you worked it out, and what you later did with it.
Read more in HMRC's guidance for businesses.
Frequently asked questions
Do I need to replace my card terminal to accept Bitcoin?
No. You can offer Bitcoin alongside cards and cash. For in-person sales, a Lightning wallet on a phone can display a payment QR code. A dedicated point-of-sale app can help with multiple tills or staff.
Is Lightning or on-chain Bitcoin better for a shop?
Lightning is usually more practical at the till because payments complete in seconds. On-chain payments require blockchain confirmations and network fees vary. Check your wallet's receiving limits, fees and liquidity before taking larger payments.
Does BTCPay Server charge payment processing fees?
BTCPay Server is free, open-source software and does not charge payment processing fees. You still need to budget for hosting, Bitcoin network fees and any Lightning routing or channel costs. A hosting or support provider may charge for its services.
How do refunds work when a customer pays with Bitcoin?
Bitcoin has no card-network chargeback mechanism, but consumer rights and your refund obligations still apply. A refund is a new payment. Agree the amount and payment method with the customer, taking account of whether the sale was priced in pounds or Bitcoin.
What records should a UK business keep for Bitcoin payments?
Keep the payment date, the Bitcoin amount, its value in pounds when received, how you calculated that value and what you later did with the Bitcoin. Normal trading income and VAT rules still apply. Ask an accountant about your circumstances and any tax due when you sell or spend the Bitcoin.
Last reviewed October 2026.