Accepting Cryptocurrency in Your eCommerce Store Makes Sense

With cryptocurrency gaining more popularity and adoption by users worldwide, this type of digital payment method is catching the attention of many retailers ready to take their business to the next level.

Despite the hype, however, there are still others that are not quite convinced or get what all the fuss is about. 

Regardless of where you stand on cryptocurrency, it’s worth keeping an eye on how adoption continues to unfold, as it may present opportunities for your business down the road. 

Crypto–What?

Before we go any further, it would be best to define, what exactly, cryptocurrency is. You may have heard these buzzwords across mass media channels: Bitcoin, Blockchain, Ethereum, Litecoin. 

It seems like we have entered a brave new world, a world where digital currency is now an actual possibility. 

The popularity of this “digital gold” lies in the fact that it is a “decentralized” currency. Meaning, it relies on no bank, no government, and no central authority. The control falls completely on those who actually use it. This is ultimately the “essence” of cryptocurrency. 

So How Does Cryptocurrency Work?

The way it works is this: All users of Bitcoin have a ledger. The ledger contains a balance sheet for every user. On that balance sheet, you will find information such as: how much they’ve spent, to whom they have given it to, from whom it was given, and the final balances.

The technology that supports Bitcoin, the blockchain, is such that the ledger can never be tampered with. Since it is decentralized, it is resistant to manipulation. 

Because it’s in everyone’s best interest to keep an accurate ledger, changes cannot be made without the agreement of all users. Since this is their digital gold, everyone wants to maintain its integrity. 

Cryptocurrency can offer more privacy than some traditional methods because transactions are tied to wallet addresses rather than names. However, crypto is not anonymous — transactions are recorded on a public ledger and can be traced, and merchants remain subject to KYC/AML requirements.

Should You Accept Cryptocurrency In Your eCommerce Store?

There is no doubt that cryptocurrency has gained a lot of traction in the last few years and is set to further disrupt the financial services industry. So what’s in it for your eCommerce business, should you decide to accept cryptocurrency? Turns out, quite a lot:

• Fast Transactions 

Blockchain technology can allow for faster, more direct transactions than traditional methods, which may support steadier cash flow. Faster processing can also help orders move to fulfillment sooner. 

• More Security

Because of their complex encryption, cryptocurrencies can be difficult to counterfeit or steal, which may help reduce certain types of fraud. No payment method eliminates fraud entirely.

• Widen Your Target Market

With the growing adoption of cryptocurrency by users worldwide, a new untapped market segment is now available, which means new customers. Also, if you are looking to expand your operations internationally, crypto makes it easier, cheaper, and faster. 

• Reduced Fees

eCommerce merchants are always bogged down with fees to process their credit card transactions and other payment methods. Third-party services for certain cryptocurrencies can charge lower fees, which may help your margins, though fees vary by provider and conditions. 

Should You Get On Board?

If you’re an eCommerce merchant looking to grow your market share while offering customers another modern payment option, cryptocurrency may be worth considering. 

Sure there are the skeptics and then there are issues like volatility. But despite this, crypto is moving in full force through growing adoption and usage. 

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Disclaimer: Bankful provides payment software and orchestration, and in some arrangements acts as the direct payment facilitator (processor of record). Processing eligibility and continued processing are determined at underwriting by the processor of record and its sponsor bank(s) under the applicable terms, which can change.