Cryptocurrency is quickly becoming a popular consumer payment method. Retailers around the world are beginning to adopt this digital currency at a rapid pace, and its impact could no longer be ignored.
Merchants and consumers would do well to learn as much as they can about cryptocurrency as it presents an invaluable opportunity.
Why Accept Cryptocurrency In Your e-Commerce Store?
The use of cryptocurrency as an accepted form of payment for e-Commerce stores provides a host of benefits. Here are just some:
- Transactions Are Quick:
When comes to traditional transactions, can be slow-moving. However, using blockchain technology enables faster, more direct transactions that allow business cash flow to be more efficient. Consumers benefit as well when it comes to faster processing. Faster processing means that they can get their items shipped instantly.
- More Security:
Cryptocurrencies are known for their complex encryption, which means that they are very difficult to steal and forge. This significantly reduces the potential for fraud in digital transactions.
- Widens Your Target Market:
By adopting the acceptance of cryptocurrency as payment, you open up your business to new opportunities to reach and widen your target market. This can also boost your new customer traffic.
- Fees Are Lower:
Credit cards and other payment methods have added transaction charges. However, fees from third-party services are considerably lower for certain cryptocurrencies. Having to pay lower transaction costs means that your business can be more profitable.
- Data Is Cleaner:
Blockchain technology is able to maintain both consumer and transactional data cleaners. This produces more accuracy which greatly benefits marketing efforts. Target marketing will therefore be more effective and prevent any waste in spending.
- Improved UX:
By adding cryptocurrencies as another accepted payment method, you are providing your customers with more choices when it comes to checking out.
When you give your customers the choice to pay how they want, you increase customer satisfaction and improve the overall customer experience.
Are There Any Drawbacks?
In spite of all the buzz surrounding cryptocurrency and its disruption to the payment industry, not every merchant is on board to adopt them as a payment method.
Here are some of the challenges associated with accepting cryptocurrencies for your e-Commerce business.
- A Myriad Of Alternatives:
There are simply too many cryptocurrencies on the market today, not to mention the new coins that make their debut on the market on a regular basis. Just familiarizing yourself with every digital coin out there can be mind-boggling.
- Price Volatility:
Volatility is one of the most critical reasons that many skeptics refuse to use or accept cryptocurrency as a form of payment. This creates a high level of uncertainty for both businesses and consumers. What would you do with returns, where the value of the cryptocurrency has fluctuated since the time of purchase?
- Issues With Trust:
Although the adoption of cryptocurrencies worldwide is gaining significant ground, their reputation is constantly being questioned by media outlets. As a result, much of the general public remains largely distrustful.
- Possible Cash Flow Disruption:
When your incoming revenue is in cryptocurrency, and your outgoing payments are in cash, this could produce a difficult situation.
Cryptocurrency Is A Perfect Alternative To Traditional Payment Processing
If you are an e-Commerce merchant looking to broaden your market base, and you also want to provide your customers with a quick and convenient payment option, accepting cryptocurrency can be the solution.
Although the world remains largely skeptical about the use of cryptocurrency, it is clear that major companies have adopted them successfully. The result has been widening their customer base, as well as seeing a boost in profit.
The key is to remain well-educated by researching and keeping up-to-date on the latest developments in cryptocurrency use.