Cryptocurrency in ecommerce — more than just a hype

Fiat money is a means of the mutual financial settlement between the market players. Be it for physical products or services, consumers look for flexibility in payment methods. Digital currencies are no exception, especially in the e-commerce world where
flexibility is a key to creating better user experiences and higher conversions.

From the very first moment crypto and blockchain entered our newsfeeds, analysts predicted its fast decay. The ups and downs of bitcoin and other cryptocurrencies only strengthened the arguments, pointing at market volatility.

Missing legislative regulations is another counterargument the opponents of crypto use. Or should I say, used to use? As of March 9th, 2022 the White House issued

the Executive Order that, in fact, is the first step to legitimizing the cryptocurrency industry.

What’s more, over the past decade, major retail players have become the early adopters of crypto. Here’s a short list of online stores that accept payments in diverse cryptocurrencies:

1. Microsoft

2. Overstock 

3. Shopify

4. Whole Foods Market 

5. Expedia Travel

6. Newegg

7. The Home Depot

Add PayPal, Twitch, Namecheap, Wikipedia, and Sotheby’s to the list. Cryptocurrency isn’t just a buzzword anymore, it’s the new black. And,

according to Gartner, 20% of large companies will adopt digital currencies (including crypto) by 2024.

Why would retailers invest in crypto?

Seeing how fast the world is responding to the adoption of crypto, it is not so hard to imagine why ecommerce merchants want to jump on the bandwagon. Let’s lift the curtain on why top ecommerce companies are choosing cryptocurrencies as one of their payment
methods.

More solvent clients

Crypto adoption by a broader market is in its early stages, as
Visa research states. But even at the moment of growth, it already has 21% of active users. This means they have recently made transfers, bought different goods, or accepted payments in cryptocurrency.

According to the recent
Morning Consult study, typical cryptocurrency owners look as follows:

1. 45% are millennials (born from 1980 to 1996)

2. 55% have at least a bachelor’s or post-grad degree

3. 20% have $50,000 to $100,000 yearly income, while 33% earn more than $100,000 per year

4. 27% are Hispanic, 20% are Black, and 19% are white.

These people are actually ready to
spend twice more compared to regular credit card users. Add the possibility to literally go beyond borders and accept international payments, and you get quite a combo, right?

Reduced transaction fees

The top payment gateways like Stripe or PayPal have a minimum fee of 2.9% + $0.30 for processing transactions. On the other side, crypto processors either don’t charge anything for handling payments or have tiny fees, like 1%. On top of that, the latter
ones don’t allow for chargebacks.

Minimized fraud risks

Thanks to advanced data encryption, crypto payments are safer than traditional ones, especially when we talk about sensitive private data. This enhanced security layer is possible due to the technology behind, the blockchain itself. With full transparency
and distribution of data across a network of computers, it excludes unauthorized access and safeguards transaction details.

Significantly speeded up transactions

Crypto transactions don’t depend on bank working hours. This means one can make payments 24/7, with no need to wait for bank opening and transferring funds as all transactions happen in real time. 

Also, as I’ve already mentioned, cryptocurrency opens up international markets. No matter what time zones the operation takes place in, one will be able to receive payment in a couple of minutes. For online businesses, it can help to facilitate their cash
flow.

Let’s see what other possible perks ecommerce shops can derive from cryptocurrency.

What the future holds for ecommerce and cryptocurrency

Art, luxury, and other industries already accept cryptocurrency transactions. Not to mention NFT marketplaces, where crypto is a default payment method. 

Still, crypto can be good not only for huge companies. Even medium and small brick-and-mortar shops, hotels, beauty salons, and other businesses can seize all the benefits listed above. And here’s more:

1. No chargebacks

2. Streamlined market expansion

3. Upcoming regulations mean broader adoption and standardization

4. More payment options = more convenience for your customers

On top of that, you can integrate crypto payments easily. Below, I will briefly describe what makes it possible.

Don’t miss the party — integrate crypto payment gateways now

To calculate the efficiency of adding crypto payments to your website, you should first analyze your audience and their needs. But if you see that your customers are responsive and even long for a new crypto payment method, you have two options to go for:

Using digital wallet. Pluses? No extra intermediaries between you and your customers. Minuses? Losing private keys to your wallet means losing all your cryptocurrencies.

Integrating with crypto gateways. There are already quite a lot of third-party processors, like Coinbase, BitPay, Coingate, Crypto.com Pay, and others who enable automatic conversion of cryptocurrency to cash. Moreover, major ecommerce platforms
(Shopify, Magento, WooCommerce, etc.) offer built-in integration with popular crypto payment gateways. To get the most out of the new payment method, I’d recommend checking the number of supported currencies, transaction fees, and payout frequency. 

Crypto payments have all the chances to become an industry standard for ecommerce companies quite soon. Don’t lose this capitalization opportunity and bring more transparency and trust into your ecommerce operations with cryptocurrency integration.