The Future of Cryptocurrency in eCommerce
It’s been more than a decade since the launch of the first Bitcoin in 2009 and the future seems to hold a lot more prospects for the cryptos. In 2019, JPMorgan starts its own JPM Coin that seeks to exploit the crypto’s instantaneous nature for faster transactions. Soon afterwards, 100 and more banks globally have tested payments via Ripple. So, cryptos are fast moving into mainstream and they are not going to disappear anywhere anytime soon. Crypto trading has been growing rapidly over the past few years, and the trend shows no signs of slowing down. Also, there are trading bots like Robbo AI that promise traders to maximize their profits. According to Robbo AI Erfahrung, it has strong security measures and customizable settings, allowing traders to adjust the bot’s strategies.
How can cryptos impact the future of ecommerce?
The reason why cryptos have become such a formidable force to reckon with is because they are completely decentralized and free from bank or governmental controls. Cryptos use encryption technology for their validation and all transactions are verified by a network of miners spread all over the world. No matter which industry you look at, cryptos are making their presence felt strongly. Bitcoin prices have been steadily escalating, reaching a record high of $66,000 recently. And Bitcoin is not the only notable crypto; this just goes to show you how impactful cryptos can be.
- As far as ecommerce goes, cryptocurrencies can assure far lower transaction costs. When businesses use payment processors like Square or Stripe for processing consumer payments, they need to pay up almost 3%-5% per transaction. But, if they were to use cryptos instead, the fees would be zero or negligible. This difference can be huge for a brand making a million sales through its website.
- Consumers are often not keen to make online purchases using bank accounts and credit cards. If an ecommerce store owner can offer them the option to pay using Bitcoins, he just might be able to entice them enough. With cryptos gaining more adoption, his customer base will grow further.
- Using cryptos for online purchases is less risky. The blockchain ensures that transactions once verified and added to it cannot be tampered with. This prevents the occurrence of frauds or hacks. Any incident of forgery/ fraud will tarnish a brand’s reputation; so, incorporating crypto payment services can help to promote your credibility.
- Blockchains not only facilitate transactions but also offer useful data that buyers can access. Online retailers can use this groundbreaking technology to track their inventory, make personalized offers to customers, provide redeemable points to repeat customers, etc. Loyalty programs and targeted promotional offers can go a long way in expanding a company’s reach.
While the crypto offers many upsides to ecommerce, there are some inherent risks. The crypto market is volatile by nature and prices will fluctuate erratically. This could be troublesome for consumers and vendors alike, especially where returns are involved. Another roadblock in its journey towards mainstream adoption has been a lack of trust. The media has attacked it often and average consumers have misunderstood it. This uncertainty, fed by fears of illegality, makes it hard for businesses to decide whether it would be the right decision to offer crypto payment options.
But, the truth is cryptos are here to stay and traditional banks have failed to dismiss them as just a passing craze. The crypto market is more than $1 billion and ecommerce stores would make a huge blunder if they were to disregard its value. As an online retailer, you need to consider your client base and competitors to see whether you stand to gain from cryptos. Every business is unique and you must weigh the pros and cons to determine what the right thing to do is. Doing this on your own can be confusing; so, reach out to researchers, experts, and reviewers to get better insights.