How to be a Bitcoin onboarding merchant with a TPoS ATM
Yes, you hear it well: you are a merchant and you want your customers to start using Bitcoin!
The onboarding process works on both ways.
This guide is about HOW to onboard new users, not to became a LN bank. So please don't come up with comments that "is custodial... bla bla bla". Yes, you can be the custodian, the LN bank for your customers, nothing wrong with that if the user are warned about the risks. If there's a trust between the parties, it is nothing wrong.
This is how we start slowly onboarding people, We MUST start using Bitcoin BEFORE the CBDCs are in place!
Recently Ben Arc announced a new feature for the LNbits TPoS:
Youtube video demo here:
Apart from new improvements for the LNbits extension, was added the possibility to sell BTC vouchers. Same as Azteco is doing. But this time ANYBODY with a LNbits instance can do it.
Conditions
- You are a small merchant, already accepting BTC
- You have a LNbits instance, for accepting BTC and many other cool stuff (see my many guides about it)
- You have also a printer for tickets or even this wonderful Android PoS with LNbits integrated
- You have setup the LNbits TPoS extension (from many others)
- You have a good LN node with good liquidity ready for funding your LNbits instance (see bellow my guides about LNbits and liquidity)
- You want your regular customers to start paying you in BTC, but they didn't started yet.
Scenario
You are just a regular small shop, grocery or whatever shop, bar, restaurant, that already accept BTC.
Some customers are still paying you in fiat cash. Fine, but also they would like to start using BTC, and they don't know how to do it, how to start. Are your regular customers, you know them, they know you.
So they do their regular shopping and pay with cash, you gave them some change, in coins or bills. Then you ask them: "would you like to convert this small change into bitcoin?" Answer is yes.
Then go to your LNbits TPoS, put the amount in fiat and print the voucher code for LNURL-withdraw with the sats.
As a first time using Bitcoin it is recommended to help them with more instructions like: what wallet should install and redeem that LNURL voucher, how to do it, safety measures, how to stack, how to take self custody etc.
I would recommend to onboard first with simple solutions, even custodial if they prefer (but warn them). The first steps are always very hard for a noob. Depending on their knowledge level, suggest the app accordingly. See bellow in the links resources the guide about LN wallets comparison.
- Blink wallet - works very easy and fast, fully supporting LNURL. Custodial, open-source, no KYC (only the phone no)
- Walletano - web / PWA wallet, no app to install, no-KYC, very simple
- CoinOS - web / PWA wallet, no ap to install, no-KYC, very simple
- Phoenix - very good and simple wallet for onboarding, self-custodial
- Zeus - you can use it with your own LNbits LNDhub accounts or using any other custodial service like Alby, LNtipBot, that support LNDhub. Zeus is more complex for a noob, but is very powerful LN node. You can start also with Olympus by Zeus LSP opening a channel with the amount of sats from the voucher, but it require more steps, not a very fast onboarding with a LNURL-w voucher.
- Bluewallet - same as Zeus, suing the LNbits LNDhub account
- Breez - very good LN node, that fully support LNURL, self-custodial
- Blixt - same as Zeus, self-custodial LN node, but the process of onboarding is not easy straight from the LNURL-voucher, this is more for advanced users.
- Your own LNBITs instance. Offer them temporary custody using your own LNBits! Read bellow a guide about how to use LNbits as a LN bank for your family and friends. And they don't even have to download any app, they could just use a LNBits account from your own LNbits instance. Of course, warn them that the funds are still in your custody and they should move them out into a self custody wallet. But for practicing and helping them with first steps, it is a nice and easy method.
And done! From now on, your recurring customers could exchange their fiat change from shopping into sats, each time they came to your shop.
I would not be worried about any "legal" repercussions. Bitcoin is digital P2P cas, another form of money that NONE of gov have power over it. Nobody can prohibit you to trade in whatever form of money or value.
Please don't confuse this aspect with "legal tender", that is totally another story !
What is a "legal tender"?
Any retailer or individual could refuse to use a legal tender. Nobody can force you to use it.
Why? What is the point of a legal tender then?
The point is that you cannot force a retailer to accept legal tender or indeed any other form of tender. If, however, you buy something from them and there is no contractual barrier to the use of any form of tender, and you offer legal tender in payment, and they refuse it, then they cannot enforce the debt in court.
That's what legal tender means: it's about discharging debts. If you incur a debt you can discharge it with legal tender, but you cannot be forced to incur the debt in the first place, if you see what I mean...
Resources links:
Please bookmark all of them to study them before you start building your own scenario. Are full of details.
- LNBits Documentation wiki
- Lightning wallets comparison guide
- Getting started with LNbits
- LNBits LN Bank
- LNbits for small merchants
- Operating with LN as a merchant
- Managing Lightning Node Liquidity
- Build your own NOSTR market with LNbits
- How to host your own LNbits instance on a SaaS server
- How to build your own LNbits server app
- How to use LNbits with streamer copilot
Let's go !