At this point, everyone has heard something about cryptocurrency and blockchain. The payments industry especially has been buzzing about it for some time. What you might not be as familiar with is what it has to offer your business and customers.
The rise of digital wallets has made it possible to offer more convenient and instant payment systems. In truth, it has forever changed the way businesses and customers think about the payment process. For ecommerce merchants it’s a way to enhance the customer experience and expand your loyal customer base.
Here’s a complete breakdown of cryptocurrency and reasons why you should jump on board with accepting it.
What is Cryptocurrency? And How Does It Work?
Before diving into why you should add it to your list of options, it helps to look closer at cryptocurrency itself. In short, cryptocurrency is a digital currency that is not controlled by any government or bank. Instead, it uses a decentralized system and encryption technology to record transactions and issue new units. It’s important to note that each coin is unique, and some coins offer more security and privacy than others – so choose carefully.
Benefits of Offering Cryptocurrency in eCommerce
There are many benefits to adding cryptocurrency to your list of payment processing options on your ecommerce site:
- Reach a broader market. Accepting cryptocurrency will open your business up to a whole new market of tech-savvy consumers. You’ll have new opportunities, including appealing to and creating loyal customers around the globe.
- Offer faster transactions. Credit card systems can take days to process. Cryptocurrency, on the other hand, is processed immediately. You not only gain quicker access to funds, but you can also streamline cash flow.
- Increase the level of security. Once a transaction is made, crypto is very difficult to reverse. You have to have the consent of the merchant. This gives you more control over and security against ecommerce fraud.
- Enjoy lower fees overall. Another huge benefit of adding cryptocurrency to your shop is that the fees associated with each transaction are very low. While the fees can vary, they will be significantly less than other providers like PayPal.
All in all, if you’re going to accept cryptocurrency, reach out to some providers that specialize in working with ecommerce merchants. It’s important that they understand both ecommerce and cryptocurrency. To ensure you make the best decision for your business, take the time to compare providers (e.g. support, contracts, fees, services, etc.).
Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.