Merchants that have been watching payment trends know that the world of e-Commerce, as they know it, is evolving rapidly. As the popularity of online shopping continues to soar, especially post-pandemic, there is no doubt that customers want a more seamless, digital payment experience.
It was estimated that, in August 2021, there were well over 70 million blockchain wallet holders. It included more than 6,000 types of cryptocurrency. It was also discovered that between the years 2018 and 2020, the number of Bitcoin holders had exploded by almost 200%. And it continues to grow.
Although early adopters of cryptocurrency acceptance included giants such as AT&T, the Miami Dolphins, and Microsoft, small and medium-sized businesses should seriously consider accepting cryptocurrencies. More customers are increasingly turning towards digital currencies to make their everyday purchases.
What’s In It For E-commerce Businesses?
Without question, when e-Commerce businesses strive to offer the most number and variety of payment options, customers are sure to come back. It is one of the most effective means of widening and growing their customer base.
There are yet even more benefits that come with accepting cryptocurrency for e-commerce businesses. Here are just a few:
1. Greater Speed
Let’s face it. Today’s customers want their purchases and they want them now. Purchases need to be made quickly and the delivery, even quicker. By using crypto, “a layer” of the processing time is removed.
Accurate data is available immediately for both the customer and the supply chain. There is also transparency in inventory. All this allows the entire purchase to happen seamlessly.
2. Enhanced Security
As one of the safest technologies to date, cryptocurrencies are based on blockchain technology. The blockchain takes care of the transactional duties that other less-secure systems are required to carry out. This allows the blockchain to sidestep any security risks.
For high-risk merchants, the blockchain takes care of validating the authenticity of the products, giving customers a profound sense of trust.
3. More Loyalty And Trust
Consumer expectations continue to grow. Today, the innovative e-Commerce experience requires merchants to have access to “robust data” about their buyers. This enables them to serve a type of loyalty that truly makes an impact on customers. This also includes providing the exact payment method that they are most comfortable with. To generate lasting loyalty, personalization is key.
4. It Cuts Costs
One of the most important issues at the forefront of any business is how to reduce costs. For e-commerce businesses, it’s no different. Most take credit cards as a form of payment, but they have quickly discovered that there are steep fees for the privilege of processing these payments.
Credit cards and even PayPal charge as much as 3% in fees. If a business sells expensive products or has very narrow margins to work with, these costs will add up fast.
Although the initial setup for accepting cryptocurrencies does require some costs up-front, once in place, the actual costs of managing crypto payments are significantly lower than that of credit card payments.
By accepting crypto, there’s an elimination of the need to accept foreign currencies or have a multi-currency option within the merchant’s website. This translates into lower transaction costs and reduced security risks for international transfers.
Cryptocurrencies Are Changing E-commerce
Although many big-name companies have already jumped on this popular cryptocurrency trend and have started accepting digital currencies, many small to mid-sized businesses have yet to see the benefit.
It may appear daunting to accept a digital currency that may have some controversy surrounding it. However, any forward-thinking e-Commerce business would benefit greatly from doing the research, dispelling any myths, and educating themselves to cater to the growing number of crypto-using customers.
One thing is for certain. Accepting crypto presents businesses with a lucrative opportunity to grow and increase their revenue in ways they’ve never seen before.