Are you using cryptocurrency payment solutions for your eCommerce platform? Ever heard of crypto eCommerce? If not, you’re probably losing out on crypto revenue.
Let’s break it down.
Payment methods have played a crucial role in facilitating seamless transactions for the online consumer base. Financial institutions took note of the growing digital migration, providing various fiat currency transaction options. Here are common payment methods currently in use:
Credit and debit cards have long been the go-to payment option for online shoppers. Their convenience and widespread acceptance have made them a staple in eCommerce. Customers can easily purchase items by entering their card details and completing the transaction within seconds.
Bank transfers are another popular method for eCommerce transactions. Shoppers can transfer funds directly from their bank accounts to the merchant’s account. While this option offers security, it can often be time-consuming, especially for international payments.
E-Wallets have gained considerable traction due to their user-friendly nature and swift payment process. With digital wallets like PayPal, Google Pay and Apple Pay, customers can store their payment information securely and make quick purchases with just a few taps.
While convenient, these solutions have their disadvantages, especially for merchants.
Despite the prevalence of traditional payment methods, they do come with their fair share of limitations hindering a truly frictionless shopping experience.
For merchants, high transaction fees can significantly eat into their profit margins. Additionally, customers may find themselves paying extra for each transaction, reducing the overall value they receive.
International transactions, particularly through bank transfers, can be painfully slow, often taking several business days to complete. This delay can lead to frustrated customers and hinder global business expansion for merchants.
Traditional payment methods are susceptible to security breaches, leading to unauthorized transactions and identity theft. Unscrupulous individuals can exploit buyer protection measures through processes such as fraudulent chargebacks, causing losses for honest merchants.
Innovative solutions are emerging to address these limitations as the world moves towards a more digital and decentralized future. Digital wallets and accepting cryptocurrency are at the forefront of this transformation, providing opportunities to improve eCommerce payments and overcome these challenges.
Through the power of digital assets, lower transaction fees and encrypted wallet addresses, these emerging payment methods promise enhanced security, efficiency and seamless cross-border transactions.
In the following sections, we’ll delve deeper into the influence of cryptocurrencies on eCommerce.
Moving with the times is critical if your business is to remain relevant. Market dynamism requires adaptive thinking from entrepreneurs and innovators as client preferences shift. Consider the recent changes in favor of the eCommerce industry.
From the changes, the market’s preference is eCommerce solutions. Interestingly, Cryptocurrency use amongst businesses also increased in the same period, with mainstream companies such as Tesla accepting cryptocurrency payments for their products.
So, what does all this mean for an eCommerce business owner? Well, crypto eCommerce.
What’s usually the primary objective for a business?
And crypto eCommerce services have proved their worth in aiding enterprises to improve their performance.
Cryptocurrency operations require blockchain technology, allowing crypto payment systems to leverage several advantages unavailable in mainstream transaction solutions.
With the listed benefits, crypto eCommerce platforms have more reasons to succeed.
Let’s delve deeper into these advantages.
Numerous online retailers lack familiarity with crypto payments, limiting their ability to exploit the benefits within their business. Below lie the advantages of employing crypto payment solutions to facilitate cryptocurrency transactions in eCommerce.
In any business endeavor, employing tact to minimize operational costs while augmenting revenue and sustaining profitability remains paramount. Crypto payments are a pivotal instrument in achieving these objectives, as they incur lower transaction fees than a credit card platform, enabling online stores to save substantially on each transaction.
Picture this: an ecommerce store dealing in fast-moving consumer goods (FMCG). The business operations will feature numerous transactions from clients paying for their goods. With high transaction fees, the FMCG store could lose potential profit to operational costs. However, through cryptocurrency payments, the low transaction fees ensure entrepreneurs retain more funds from the revenue
Did you know? Merchants lose an average of $3.75 for every $1 lost to fraudulent chargebacks.
Eliminating ecommerce fraud (such as chargeback fraud, a pervasive issue in credit card transfers) is another critical element in curbing operational expenses. By integrating crypto payment gateways, merchants gain a shield against entities seeking to exploit them.
Astonishing estimates predict a single case of chargeback fraud could reach a staggering $190 in 2023! Thus, embracing a crypto payments gateway emerges as an effective measure to mitigate business losses, robustly supporting cryptocurrency adoption in eCommerce.
The ever-growing adoption of cryptocurrency as a payment method among over 300M individuals presents a vast opportunity for businesses to attract new clients through crypto payment gateways. By tapping into this potential market, enterprises can explore new markets and offer more convenient options for their existing clientele.
Crypto eCommerce proves particularly appealing due to its facilitation of hassle-free cross-border transactions, allowing global customers to access products and services from supporting establishments and receive their crypto equivalents upon completing the trade.
With 20,000 cryptocurrencies, each business tends to have its own preference based on various factors. Ensuring broad support for cryptocurrencies enables merchants to be well-equipped to accept digital currencies while delivering eCommerce services. Such extensive backing helps retain existing traders and serves as a powerful magnet for attracting new business opportunities.
Cryptocurrency, a global phenomenon, faces certain limitations in diverse jurisdictions. With only over 15,000 businesses accepting crypto payments out of a colossal 335 million, there’s immense growth potential. To unlock the digital currency prospect and gain a first-mover advantage in eCommerce services, merchants must embrace crypto payment gateways tailored to their specific industry and jurisdiction.
Here’s what a first-mover advantage means with seamless crypto transactions:
Let’s now focus on the security advantages.
OeksxYEndplo95082e80y9bu398hgb350hn3 – A random alphanumeric sequence representing a cryptocurrency wallet address.
Do you think anyone can guess this if it was your wallet?
Businesses can now bolster their security and safety measures significantly by leveraging the potential of crypto payment gateways. Blockchain technology, the backbone of cryptocurrencies, ensures a robust layer of protection for all transactions and user data, using sophisticated cryptographic methods.
Embracing the immutable nature of the blockchain, all data added to this digital ledger is encrypted and rendered permanent, impervious to tampering or unauthorized access. This unyielding safeguard guarantees the integrity of the data remains uncompromised, reinforcing a sense of trust and confidence among users.
In short, your business data is secure when using cryptocurrency payments.
The beauty of the blockchain lies in its ability to pinpoint and rectify any compromised record. In the unlikely event of a breach, the system enables swift identification of the affected data, allowing quick corrective action. Meanwhile, the rest of the data enjoys the utmost security and inviolability.
So, with all these advantages? Would you consider cryptocurrency payments for your business?
If yes, here’s how to incorporate crypto payments to grow your platform.
By following these meticulous steps, eCommerce businesses can embrace cryptocurrency payments, opening new dimensions of flexibility, growth, and customer satisfaction. The benefits are undeniable, and those who seize this opportunity today will undoubtedly stand at the forefront of tomorrow’s digital economy.
So, could there be any drawbacks to accepting cryptocurrency payments?
Well, yes. And the cryptocurrency market has provided solutions to these challenges.
Finding a cryptocurrency payment processor can be daunting without the necessary information. However, using our list of considerations will help you select a complementary platform for your eCommerce service.
Consider CoinPayments, a trusted cryptocurrency covering all the considerations described. With an industry-low fee starting at 0.5%, CoinPayments extends its support to thousands of merchants since 2013. CoinPayments also facilitates global transactions in over 100 cryptocurrencies..
So, what’s in it for your eCommerce platform?
Create a business account today to get started with crypto eCommerce.
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