The Most Important Reasons Why Cryptocurrency Is Affecting E-Commerce
Government lockdowns have ramped up the shift to online shopping. According to ROI Revolution, e-commerce sales are expected to hit a record high of over $843 billion this year in the U.S. alone. Some of the factors pushing e-commerce growth include flexible buying hours, mobile internet penetration, data protection, and the ability to shop at home.
Newly released data from Adobe projects that e-commerce sales will top $1 trillion in 2022. Alongside deploying techniques from online sales negotiation classes, integrating cryptocurrencies into your e-commerce business could boost your sales. Leverage crypto and you slash the transactional cost and provide your customers with more options at the checkout.
Why Is Cryptocurrency Important?
Cryptocurrency, in simple terms, is an online currency that’s use is not controlled or negotiated by any central authority, bank, government, or state. There are more than 5,000 different digital currencies being used in sales transactions today.
The most popular cryptocurrencies include:
- Bitcoin
- Ethereum
- Dogecoin
- Binance Coin
- XRP (Ripple)
- Cardano
- Litecoin
- NEO
- Tether
Crypto is based on blockchain technology and uses complex encryption techniques that negotiate their use and generate their release. Through cryptographic proof, transactions are verified and recorded in encrypted databases called blockchains. To prevent fraud, each online sale is verified using either proof of work or proof of stake validation techniques.
Cryptocurrency is attracting the attention of many e-commerce retailers. One key reason is that it can be automatically converted into local currency. Some of the major companies accepting crypto payments include PayPal, Tesla, Microsoft, Overstock, and Starbucks.
PayPal is currently allowing its U.S. customers to buy, sell, and hold cryptos in their PayPal accounts. The payments giant is also planning to allow its customers to use cryptocurrencies to pay at 26 million different merchants globally.
Benefits of Using Cryptocurrency in E-commerce
Cryptocurrencies are not only gaining traction as e-commerce payment options but are also making it easier for customers to buy, sell, store, and even negotiate trading assets online. Crypto is practically everywhere and continues to gain steam.
By incorporating cryptocurrency payment options into your e-commerce platform, you can take your business to the next level.
Here are five key benefits of integrating cryptocurrency into e-commerce:
Faster payments: Cryptocurrency gives you instant access to funds. Crypto transactions can help streamline your business cash flow because they’re direct and fast.
More secure: To reduce e-commerce fraud, digital currencies use escrow services. The cryptocurrency escrow account holds the money until both the sender and receiver are satisfied and have fulfilled the escrow agreement. Once crypto sales are complete, they cannot be canceled or reversed.
Greater transparency: Blockchain technology guarantees trust and transparency. Through the system of distributed ledgers, each transaction is verified by a user. It then becomes a public record.
Eliminates the middleman: Cryptocurrency removes the need to negotiate with middlemen in many of its processes and transactions.
Broader market: The convenience of digital currencies appeals to customers across the globe, enabling e-commerce retailers to tap into broader online markets.
How Cryptocurrencies Influence E-commerce
Have you been wondering if cryptocurrency payments work for e-commerce? The truth is that both are centered around tech and complement each other well. Cryptocurrency has become part of the e-commerce process and is the alternative to cash and credit cards.
An e-commerce platform allows your customers to search for products online and purchase them from the comfort of their homes with just a single click. Accepting cryptocurrencies in your online business can give your brand a competitive edge.
The Bottom Line
Digital currencies have the potential to breach the barriers and negotiate entry into the wider e-commerce industry. With cryptocurrency, customers don’t have to use their credit cards, go to a bank, or withdraw money when paying at checkout.
Accepting crypto could serve as a great complement to your e-commerce business as well as give you a new customer base.
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