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, the reality is that merchants really should keep a close eye on how cryptocurrency adoption continues to unfold. As it stands, you could be looking at a very lucrative opportunity for your business in the near future.
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.
Another aspect that makes cryptocurrency unique is its privacy. Since it is based on wallet addresses and not names, transactions remain anonymous. This is a far cry from the lack of privacy found in credit cards and bank accounts, which are directly linked to your name as well as your physical address.
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
The use of blockchain technology allows for faster and more direct transactions than traditional transactions. More direct transactions mean steady business cash flow. Customers win because quick processing times mean products can be shipped instantaneously,
- More Security
Digital transactions are plagued by fraudulent activity, but with crypto, this is a thing of the past. Because of their complex encryption, cryptocurrencies are almost impossible to counterfeit or steal. This greatly mitigates any risk for fraud.
- 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 that allow certain types of crypto charge considerably lower fees. Lower fees mean more money for your bottom line.
Should You Get On Board?
If you are an eCommerce merchant looking at growing their market share, while offering your customers the latest, most streamlined, and frictionless payment method, then cryptocurrency could be your solution.
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.