Cryptocurrencies have gained a lot of traction in the past couple of years. It doesn’t matter whether cryptocurrency has become popular because of revolutionary blockchain technology or people seeing it as an investment opportunity because the important news is that crypto is starting to get implemented in the day-to-day lives of regular people.
Cryptocurrency found its role in eCommerce a long time ago, but we see it getting implemented on a large scale now. Other than producing many new assets for investors and traders, executing payments is another function that cryptocurrencies provide.
Cryptocurrency in eCommerce has been a sensitive subject, and not only because of the price fluctuations. Cryptocurrencies are exchanged for items in place of money at the current price of the coin. The conversion happens simultaneously with the transaction, so the only difference is what you do with your taxable income. Many people wonder why anyone would want to pay with cryptocurrencies in the first place.
For early adopters, cryptocurrency holds more value than at the time when they invested for the first time. Practically, there are many people for whom transactions cost less than their current worth. It takes minutes to set up a wallet for personal payments, and multiple eCommerce platforms provide different third-party integrations, too.
If you have been thinking about implementing cryptocurrency in your eCommerce business, it’s time to look at the advantages of adopting crypto payments.
The Early Bird Gets the Worm
Adopting crypto earlier enables you to become a digital asset investor on top of making a profit with your eCommerce business. People that support crypto also support companies that implement it, and that is a type of clientele that any business wants. Long-term holders even enjoy better tax rates with cryptocurrencies, improving the outlook for the future of your company.
Growing Crypto Adoption
A lot has changed since cryptocurrency caught the eye of the media with the price surge in 2018. Numerous institutions started to take an interest in investing in cryptocurrency, further driving the price up. Due to the increased interest, many countries decided to change their laws and regulations regarding crypto. Cryptocurrencies are awaiting massive adoption in the following years, resulting in increased benefits for eCommerce merchants and regular digital asset investors alike.
Expanding Your Targeted Market
Many cryptocurrencies have a sizeable and loyal following, so no market integration goes unnoticed. Enabling one more payment option will always bring an increase in your user base. Customers have different preferences regarding payment options, and you should by no means exclude cryptocurrency payments. Many companies are looking to target clients who prefer to pay with crypto, so accepting cryptocurrency payments could expand your targeted market.
There are often occasions when two parties have to resort to an intermediary when concluding a contract. A smart contract is a transaction protocol that can automatically execute actions following appointed terms. The way a vending machine can sell products without a salesperson, performing obligations from a smart contract can take place automatically.
Cryptocurrencies work using a distributed digital ledger system, so the user data and transactions do not use a single server for storage. Many traditional financial institutions and companies have sensitive information about their clients that they must take security precautions to protect, but data leakage accidents still happen. With cryptocurrencies, there is no personally identifying information floating around on a server – making no room for security incidents like identity theft to take place. Users only need their wallet credentials to send and receive money or check the state of their account.
The beauty of the digitalization era and eCommerce is that people can order items from across the world, although different payment processors with their fees is a long-persisting problem. Depending on the network, various types of cryptocurrencies have differing fee structures for sending or exchanging coins. However, the cryptocurrency fees are always transparent, and people won’t have to worry about hidden fees or whether they can check out at all.
Improved User Experience
Providing potential clients with more options is good eCommerce practice, but providing them with more payment options at checkout enables them the flexibility to pay how they want to. Having more options is rarely a bad idea in eCommerce, plus it provides a significantly improved shopping experience that sets a store ahead of the competition. The improved user experience can attract new visitors, increase conversion rates and help retain existing clients by reducing cart abandonment.
Many eCommerce merchants are starting to accept payments through a third-party payment processor or their wallet directly, and so can you. We saw quite a few fads in eCommerce, but cryptocurrencies are a development that is here to stay.
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