It comes to no surprise that ecommerce is growing at a fast pace, with Covid-19 bringing more shoppers online than ever before.
A byproduct of the ecommerce industry growing is the need to keep up with demand. Platforms are making customer experience top priority by removing clunky payment systems and streamlining the checkout process. One of the newest ways to do this is through introducing cryptocurrency. There are currently 5,000 different crypto currencies with the global market set to reach $57 million by 2025. According to a survey by Piplsay Research- 57% of US based consumers say that major brands should start accepting cryptocurrency as a form of payment. Naturally cryptocurrency and ecommerce go hand in hand as both only exist in virtual form and have functions that rely on the transfer of funds.
What is Cryptocurrency?
Cryptocurrencies are systems that allow for secure payments online which are denominated in terms of virtual currency. A defining feature being that they are generally not issued by any central authority, rendering them theoretically immune to government interference.
Benefits of Cryptocurrency in e-commerce:
Market expansion- Businesses that integrate crypto payments into their systems allow worldwide customers to have the accessibility to purchase products using a universal currency. Adding a further advantage as those who are enthused by crypto are more likely to choose you over a competitor.
Its speedy- Regular bank transactions can take a few days to process whereas cryptocurrency transactions take just a few minutes helping to streamline your cash flow.
Its safe- Cryptocurrencies are impossible to counterfeit coins. Anyone can view every single deal carried out on blockchain. Any disputes or misunderstandings can be easily solved, overall reducing the risk of fraud.
Drawbacks of cryptocurrency:
Trust issues- Reputation of cryptocurrencies and the blockchain technology behind them has been tarnished by negative associations in the media.
Alternatives- Cryptocurrencies are constantly changing with thousands of variations, creating a payment method to accommodate these alternatives can be a bit confusing.
Potential Territorial regulations- Cryptocurrencies are entirely digital and for many countries, far away from any sort of proper regulation. Particularly so when cashing in cryptocurrency, creating additional governmental and tax regulatory questions in regards to your business’ income.
If you are looking to pursue crypto currency options for your business despite the cons, its appeal is still undeniable in the online circles. It’s mainly important that you decide whether it’s right for your business’ products, services and demographics before the integration of potential cryptocurrency payment options.