May 18, 2022
Just like ecommerce had been the buzzword a decade ago, now “cryptocurrency” seems to be the order of the day. The interrelationship between the two needs to be carefully explored. With more and more businesses and individuals signing up on cryptoexchanges and downloading digital wallets, it looks like cryptos are here to stay. So, why not use them to boost ecommerce sales?
Cryptos can be converted into fiat currency when payment processors are used; so, it makes perfect sense for online retailers to offer customers the option to pay using cryptos. Many top-notch brands and payment processors have announced their intention to adopt cryptos. Ignoring the blockchain technology’s impact on ecommerce would be a Herculean mistake for businesses today.
How cryptocurrencies and ecommerce are related:
Cryptocurrencies are a type of digital payments based upon complex encryption which can be exchanged amongst parties for services and goods. For investors, they have become a safe store-of-value. Not only that, investors are making a significant return on investments from crypto trading as there are plenty of automated trading platforms that simplify the process of crypto trading. Cryptos are decentralized and not under control of any institution or government; all transactions are verified by a network of computers or miners. Data related to transactions are added to the blockchain as blocks and this cannot be changed or erased.
Ecommerce has been around for years now, and more and more businesses are finding it worthwhile to accept cryptos as a medium of paying online. Recent endeavors by giants like PayPal are a case in point; in March 2021, it launched a new feature “Checkout with Crypto”. This allowed US buyers to use cryptos like Bitcoin or Ethereum to pay for their online retail purchases. Users are free to convert their cryptos into USD or Euro with no extra transaction fees. Likewise, retailers do not need to pay fees to offer this payment flexibility to buyers. Even eBay recently indicated that it is keen to accept cryptos as payment. These signal mainstream adoption of Bitcoins.
Retailers like Expedia, an online travel platform, are adopting cryptos like never before. It accepts BTC payments vis-à-vis Coinbase while the genZ skincare brand Wake lets buyers pay using cryptos through its Shopify-backed store.
Why are ecommerce stores welcoming crypto payments?
- When businesses accept cryptos as payment, they can reach out to a bigger market comprising of tech-savvy buyers. This means gaining a wider target audience which automatically signals a boost in sales.
- Unlike credit card purchases which may take a while to be processed, crypto payments are much quicker. Faster transfers streamline business cash-flow.
- Transaction fees associated with every payment are far lower than what one would have to pay using PayPal or with credit/debit cards.
- Once transactions are conducted using cryptos, they cannot be tampered with or reversed. This also avoids chances of double spending or duplication. It means greater security for the retailer and customer.
To accept crypto payments in an online store, the retailer can either opt for a payment processor or a digital wallet. When you wish to receive Bitcoins through a wallet, you must first download and install it. It is convenient and simple to add bitcoin to the wallet when you automated trading robots like bitcoin revolution robot that execute the trade autonomously. Hardware wallets are safer as they are protected against cyber thefts and hacks. Alternately, you can use payment processors like PayPal and Coinbase who conduct transfers just like credit card payment providers. This is perhaps more advantageous because they instantly convert your cryptos into fiat money, thereby preventing price changes due to volatility.
If you are keen to outdo your competitors, it may be a good idea to incorporate crypto payments in your ecommerce store. This allows you to boost your brand image, get more visibility, and acquire new customers with minimal risks.