The Benefits of Accepting Cryptocurrency in Your Online Store
Blockchain and cryptocurrency have been at the center of the buzz for quite some time now, unless you’ve been living under a rock. With the rise of digital wallets, we now have easier and more convenient payment systems, which disrupt our business models. As cryptocurrency is automatically converted to local currency by a payment processor, accepting cryptocurrency payments can be pretty seamless for retailers. The majority, however, are yet to get on board.
By adding cryptocurrency as a payment method, you can provide more options to your customers at checkout and improve the customer experience. Here are some reasons why your eCommerce business should consider implementing this service.
To begin with, it might be helpful to define cryptocurrency. The term cryptocurrency describes a digital currency that is not controlled by a bank or government, but rather is regulated and generated by encryption techniques.
Each transaction is verified by users on a network, and the records of those transactions are generally public so that the coin cannot be spent more than once by the same individual. To use cryptocurrency effectively, you must understand that all coins are unique, and some offer greater privacy and protection than others.
The use of cryptocurrency in e-commerce
The similarities between eCommerce and cryptocurrency are obvious, as both appeal to the digitally savvy consumer. In the same way you view your business as an eCommerce retailer, you need to view cryptocurrency as well. The service offers an additional payment option for those who are looking for a fast and convenient payment method. In this way, we can see that there is a high demand for digital payments among online consumers.
With cryptocurrency, you never have to go to a bank or withdraw money. Even submitting a credit card number is not required. When digital payments are done correctly, they can serve as a great compliment to the services you already provide. Demand for online retail is driving digital payments today, and if you follow the right steps, you could benefit from these opportunities.
Cryptocurrency’s benefits in eCommerce
The following are some specific advantages of accepting cryptocurrency in your eCommerce store:
A wider market
You will be able to tap into a whole new market of tech-savvy consumers, who have created their own community within the cryptocurrency market when you accept cryptocurrency as a payment method. With the option to pay through a digital Bitcoin wallet or a credit card platform, you can reach broader markets and appeal to consumers worldwide.
Transactions are made quickly
Bitcoins are processed instantly, unlike credit card systems, which take a few days to process, allowing you to access funds much more quickly. A fast transaction can simplify cash flow for your business.
Fees are low
Offering cryptocurrency as a payment method also has the benefit of low transaction fees. Whether you accept cryptocurrency through your personal wallet or through a third-party service, your fees will likely still be low compared to those of services like PayPal or credit card companies.
In the event that a customer completes a transaction with cryptocurrency, reversing it is difficult unless the merchant consents. As a result, retailers are more secure when it comes to eCommerce fraud, since no middle force, such as a bank, can withdraw money from their accounts without their knowledge.
A Guide to Accepting Cryptocurrency Payments
The two methods of accepting cryptocurrency in your eCommerce store are through your personal wallet and through third-party payment processors. We’ll go over both methods.
When accepting cryptocurrency through your personal wallet, you’ll have to step up to a virtual wallet. You can download most wallets to your phone or computer, or you can buy a hardware wallet. A hardware wallet stores cryptocurrency on a hard drive inside a physical safe. You can store a user’s private key only on this secure hardware device.
If you prefer, you can use a third-party payment processor, who will handle the entire payment process, as they do with credit cards. Third-party payment processors are better than personal wallets because they can instantly convert cryptocurrency into fiat, so you aren’t exposed to price volatility. Volatility of price refers to the changes in price that are sometimes rapid and extreme for cryptocurrencies. Having this protection means that you’ll get paid no matter how much the coin’s value changes during the transaction.
It can be challenging to choose the right wallet and provider. It is important to remember that not every wallet and exchange platform is trustworthy, as anyone can create their own cryptocurrency trading platform. Hiring a blockchain developer may be a good option if you are interested in this.