You have likely heard about the buzz of blockchain and cryptocurrency which have witnessed popularity in recent years. The use of digital wallets is becoming rife and is changing the way we manage business nowadays. The process is becoming quite coherent since the cryptocurrency is automatically converted into local currency. If you are running your own e-commerce business, you can adopt a cryptocurrency payment method. In this regard, the adoption of coinbase e-commerce—a platform that allows cryptocurrency payments—is the safest and effective option for your business.
This approach will augment your customer base by giving numerous options in the checkout phase. This will also allow you to accept digital payments. In the following content, we will outline the reasons why adopting crypto will be a boon for your e-commerce business;
Advantages of Cryptocurrency for E-commerce.
Though cryptocurrency has started making it to the front pages recently, numerous businesses have been accepting cryptocurrency for quite some time now due to its numerous benefits.
Crypto commerce is a much faster and convenient way to pay for services and products. And rightly so, since you do not have to visit a bank to do transactions or enter a credit card number at the online checkout. Whether you should start accepting it or not, decide yourself after going through the benefits;
Less Transaction Fee
Accepting cryptocurrency entails extremely low transaction fees since digital currencies are not being processed by common banks or central processing authorities. It is almost less than 1 percent of the transaction amount.
You can access the whole new world of tech-savvy consumers with this payment method. There is a presence of countless communities in the cryptocurrency market. Accepting payments through cryptocurrency allows you to plug the broader markets and target consumers from all around the world.
Ecommerce fraud can be avoided because of the absence of a middle man, i.e., a bank. This gifts impregnable security to the retailers. Furthermore, without the consent of the merchant, it is immensely difficult to reverse the transaction.
To put it in perspective, around 300,000 new bitcoin wallets are downloaded every month, and the number is steeply rising. This proves that businesses are readily embracing crypto. It is only logical since there are over seven billion potential customers around the globe, and to reach them across boundaries means high costs. This is where digital currency does the trick.
Adopting cryptocurrency for your e-commerce business ensures fast transactions. While traditional methods of payments take days in the process, digital payments are processed immediately. This efficacy will contribute to streamlining the cash flow of your business.
But Consider this…
The price fluctuations of cryptocurrencies are pretty unpredictable. Then there is a high level of volatility which ultimately affects the e-commerce businesses. There is also a possibility of a sudden crash of prices in a matter of seconds. Also, there is a lack of regulation of cryptocurrencies.
Even though governments around the world are striving to set regulatory standards for cryptocurrencies, such measures will take quite some time. There is a sense of urgency in such proceedings since governments would want to rein in decentralized currencies through regulations.
It is quite enticing for small businesses to accept cryptocurrencies, especially if they are striving to expand their reach globally. These business owners should tread with caution since there is massive speculation and volatility. They should be wise enough to adapt to the changes and be mindful of the associated risks. Once they are sure of it, they can jump on the bandwagon.