Blockchain and crypto-currencies are growing rapidly. The high valuation of digital wallets opens the door to new, more convenient and instant payment methods and, as a result, is disrupting the way e-commerce works and habits. Since crypto-currencies are automatically converted into local currency for merchants when using a payment terminal, accepting this currency can be quite simple for e-retailers. Despite this, most of them are not convinced and have not jumped on the bandwagon yet.
If you are an e-merchant selling online, creating an online store is an important step, but being flexible to new technologies is even more important. Indeed, adopting crypto-currency as a payment method can improve your customers’ experience and expand your market by offering more choices at checkout.
In this article, everything will become clearer, including:
– the definition of crypto-currencies,
– the use of cryptocurrency in e-commerce,
– the reasons for using crypto-currency payments.
What is a crypto-currency?
A crypto-currency is a form of payment that can circulate without the need for a central monetary authority like a bank. By the way, crypto-currencies are created using cryptographic techniques that allow people to buy, sell or trade them securely and confidentially.
Crypto-currencies can be traded for goods and services, but they are often used as a means of investment. They are also a key part of the operation of some decentralized financial networks, where digital tokens are an important tool for various transactions.
How can crypto-currencies be used in e-commerce?
E-commerce and crypto-currencies complement each other quite well since they share the same base and both cater to digitally aware users. This is an additional option for those looking for a quick and more convenient way to pay for goods and services. In addition, it will give your business the image of a company that listens to the market and puts the customer at the center of its strategies and decisions.
With crypto-currencies, there is no need to go to a bank, withdraw money or even enter a credit card number before submitting a payment at the cashier.
It’s clear that crypto-currencies and the technology behind them are rapidly gaining popularity in the e-commerce industry. But what are the benefits of accepting this type of payment in your online business?
Advantage #1: A better user interface
By adopting crypto-currency payments on your e-commerce site, you give your customers more choices during checkout. This flexibility allows customers to pay the way they want, which provides a better overall shopping experience, helping to increase conversion rates and reduce cart abandonment. In addition, it can motivate customers to be loyal to you and even recommend you to their friends.
Advantage #2: Fast transactions
While traditional transactions can be rather slow to cash out, blockchain technology offers faster and more direct transactions that can help streamline your business’ cash flow. Another benefit is that crypto-currency processing is immediate, this means that orders can be shipped instantly, which is perfect for meeting the growing customer demand for fast delivery.
Advantage #3: Market Expansion
Adopting crypto-currency transactions could expand your target markets and lead to an increase in new customer traffic on an international scale. This is because crypto-currencies can make international transactions easier, cheaper and faster.
Advantage #4: No chargebacks
Crypto-currency transactions are irreversible, unlike credit card transactions. Once the funds are transferred, the person who sent the payment cannot get them back without the merchant’s consent. This saves you chargeback costs and prevents online fraud.
Advantage #5: Zero or low transaction fees
As mentioned earlier, cryptocurrency is not regulated by governments and financial institutions. So, transactions happen directly between the buyer and seller, with no middleman to hold your funds, and most importantly, the fees (if any) for processing crypto payments are lower than credit cards.
Benefit #6: Speed of Payment
When you accept payments made by credit card, it can take a few days for the funds to be received. This problem is due to the third parties involved in processing traditional payments. While crypto-currency transactions are faster because they are verified by a specific program.
Finally, the adoption of crypto-currency as a payment method allows e-retailers to expand their market share, open up to international markets and above all stay ahead of the competition while building customer loyalty. While some people remain skeptical about the general adoption of crypto-currency and the impact it could have on e-commerce, the market as well as new consumer patterns and rising demand prove a real need and eventual widespread acceptance.