You’ve probably heard of blockchain and cryptocurrency, unless you live under a rock. Digital wallets are enabling faster and more efficient payment methods, which is disrupting our business model. Accepting cryptocurrency can be made easy for retailers because it is converted automatically into local currency by payment processors. Many are still not onboard.
An eCommerce seller selling online can use cryptocurrency to enhance their customer journeys and increase their choice of payment methods. Here are a few reasons you should implement cryptocurrency into your eCommerce business.
eCommerce And Cryptocurrency Work Well Together
Both eCommerce and cryptocurrency work well together, as they share the same home and appeal to the same audience. You should see cryptocurrency as an eCommerce retailer in the same way that you view your business. This is an alternative payment option for people who want to pay quickly and conveniently for goods and/or services. This shows that there is a high demand for digitally-based payment options among online consumers.
You don’t need to visit a bank to withdraw money or enter a credit card number to make a payment. Digital payments are being driven by the same demand as online retail. If done correctly, it could be a great complement to existing services.
How Your Online Retail Can Benefit From Cryptocurrency
Let’s look at the benefits of cryptocurrency acceptance in an eCommerce store.
You can accept cryptocurrency as a payment option and gain access to a new market of tech-savvy customers who have formed a community in the cryptocurrency market. You have the option of paying through a digital wallet, or credit card platform. This allows you to tap into wider markets and appeals to consumers around the globe.
It Is Faster
Cryptocurrency is faster than credit cards systems which can take several days to process. Your business can benefit from fast transactions to improve cash flow.
It Costs Less
The low fees associated with each transaction are another benefit to cryptocurrency being used as a payment option. Although fees may vary depending on whether you accept cryptocurrency directly to your wallet or via a third-party provider such as Coinbase, they will still be significantly lower than those charged by services such as PayPal and credit card providers.
It Makes Transactions More Secure
If a customer makes a cryptocurrency transaction, it is difficult to reverse the transaction unless the merchant has given their consent. This gives retailers greater security in eCommerce fraud prevention, as there is no middle man (such as a bank) that can withdraw funds from your account without you consent.
You Can Use Cryptocurrency Anywhere
You can store cryptocurrencies in a digital wallet (wallet), which you can access from your computer or your phone, or in a physical wallet (a type of USB stick). You can do this with the Ledger Nano S.
This hardware wallet allows you to carry your cryptocurrencies with you everywhere.
Another option is to store your cryptocurrency on your credit card. TenX is currently working on this.
Crypto Coins Will Remain Yours
The crypto coins will remain yours as long as you know your password/passphrase and can only be used by you.
This is in contrast with the money that you deposit into a bank account. Legally, it is not yours. You become a creditor to the bank when you deposit money in your bank account. The bank manages your money for you.
The bank acts as an intermediary between the bank and you in transactions you make with “your money”. These transactions are handled by the bank as an intermediary between you and the third party.
With cryptocurrencies, it works differently. It is possible to do business immediately with others without the involvement of banks or other third parties. Transactions using cryptocurrencies can be peer-to-peer or between people.
Bank for the Unbanked
Around 2 billion people in the world don’t have access to a banking account, but many of these people have a cell phone.
These people can use blockchain technology and cryptocurrencies to make financial transactions using biometrics on their mobile phones and increase their wealth.
Trust In Cryptocurrency Transaction
Trust in a cryptocurrency transaction is not built from a bank or institution, but rather from the code of the specific cryptocurrency. The crypto world uses the term “trust the code” quite often.
As more people use the particular blockchain, and/or more security guarantees are provided or improved encryption is added to the code, the confidence in the code will increase.
Sometimes, the history or length of a blockchain can also be a guarantee that users have trust in it.
It Is Privacy-Focussed
To be able to execute bank transactions, you must provide detailed personal information. You don’t need to give any personal information for cryptocurrency payments. The transactions are anonymous.
From cryptocurrency to cryptocurrency, privacy and anonymity can vary. The privacy-focused crypto coins Monero and Dash, CloakCoin, Verge, and CloakCoin are all well-known.
You can divide over as many cryptocurrencies to your bank accounts as you like
You can have as many accounts numbers and addresses in your crypto wallet as you like.
This is useful if you don’t have enough crypto.
Let’s say you have EUR 1000 worth of Bitcoin. This can be transferred to one bitcoin address. However, if you wish to make a payment with your mobile phone, you can use an app to create a bitcoin address or account number.
You can then spend as much as EUR 100 via your smartphone on Bitcoin.
For e.g. Fixed expenses, groceries, holidays, or for children.
You are your own banker with cryptocurrencies.