Cryptocurrency revolutionized payment systems and gateways in a way that customers send or receive coins fast and easily.
This type of transactional exchange has been considered financial freedom for regular people, as it provides services and products without third parties interfering. Therefore, fewer fees are included in the final transaction.
E-commerce is one of the industries that can be improved with cryptocurrency. That’s because the sector is known for being slow and sometimes unresponsive to people’s requests since customer service is overwhelmed.
If e-commerce operated more with cryptocurrencies, users would only have to buy Bitcoin from Binance and connect their digital wallet to the shop or provider. This takes about a few seconds, and people don’t have to include all their personal information for the transaction to be processed successfully. At the same time, offering the choice to pay with crypto would help businesses broaden their customer target to international audiences.
How Can Crypto Improve Ecommerce?
E-commerce is a complex industry, with numerous legal aspects included within operating businesses. While companies sometimes get through with different strategies, selling or buying products and services from anywhere is difficult. Local markets are unprepared to expand their views and focus on developing their current positions.
However, as globalization evolved, these local shops provide precisely what people or other organizations from different areas need. Looking at the rise of Asian products and foods in worldwide exports, we can see how accurate this depiction is.
There are a few advantages of introducing crypto within E-commerce, such as the following:
- It grants the possibility of entering a whole new market that consists of tech-savvy customers;
- Provides lower transaction fees compared to credit card companies and payments apps;
- Ensures anonymity through encrypted wallet addresses so anyone can shop without giving away personal data;
- Reduces chances of fraud and chargeback with the help of blockchain technology;
- Secures the transaction between both parties and eliminates the possibility of unauthorized withdrawn funds;
Cryptocurrency In Ecommerce Can Be Challenging To Tackle
At least for now, introducing cryptocurrency into E-commerce entirely is not feasible. That’s because of volatility issues that also hinder Bitcoin worldwide adoption. Almost all digital assets aren’t tied to any official currency, which doesn’t ensure enough safety for the long term.
There’s also the sustainability matter. E-commerce is known as being one of the most wasteful industries, but crypto is not far. Mining only one Bitcoin is the equivalent of an average US household energy bill for one year. The emissions are considerably contributing to the increase of greenhouse gas, which may worsen climate change in a few years.
Finally, there’s a considerable disadvantage of not having third parties involved in transactions because there’s no one to come up to for support or guidance in returning the coins in case of fraud or other unpleasant situations. Although the industry mitigates crypto decarbonization and
Ethereum has already minimized almost all its carbon emissions, there’s a long way for crypto to become sustainable.
Best Cryptocurrencies For Ecommerce
The E-commerce sector should first adopt a few trusted cryptocurrencies, such as Bitcoin or Ethereum. Bitcoin is the first cryptocurrency ever released on the market and has proven to be an effective store of value since 2009. Since then, it has been introduced to almost any world economy, and almost anyone can pay with Bitcoin for certain digital services.
Ethereum, on the other hand, might not have the same financial value as Bitcoin, but it has been the second most popular altcoin for a while, making it quite reliable. Ethereum offers more value through its blockchain, leveraging smart contracts, dApps, DAOs and other ecosystems that would revolutionize E-commerce.
But these two coins might be pricier to get from crypto beginners, so there are a few options that are more approachable by both individuals and companies. For example, Cardano is a cheaper and more scalable version of Ethereum and operates with the help of engineers and cryptography experts.
There’s also an alternative to Bitcoin which is called Litecoin. This digital asset generates faster than Bitcoin and provides a speedier transaction speed. However, its value is considerably smaller compared to the first coin.
Why Choose Cryptocurrency Now As An Ecommerce Business
There isn’t a better or worse time to use cryptocurrencies for companies. Of course, Bitcoin’s value and price increase, and this rule applies to most digital assets, meaning that in the future, they’ll be less approachable even by companies.
This is called competitive advantage, and it provides the perfect opportunity for a company to distinguish itself from similar organizations. Such a strategy helps accumulate more profit considering that crypto enthusiasts are always looking for companies that can help facilitate regular transactions or offer products or services related to their passion.
At the same time, cryptocurrency might not be here for a while, as no one knows how it will develop and if these assets will keep their value for more than two decades. Considering volatility concerns, the crypto sector lacks confidence for the future, which can scare customers.
Will Ecommerce Fit Crypto?
This blend between the industries also requires the E-commerce sector to be prepared to withstand such a major change. This means it should start changing its technology and be open to developments as a way to keep up with customer behavior. Therefore, E-commerce needs tech-savvy people who are willing to try different practices and strategies to appeal to as many other customer targets as possible. This can only be done through creativity, openness and initiative. Of course, preparing for crypto means developing platforms that are scalable and knowledgeable for customers. But this is not enough because the world changes continuously, so the market needs to adapt on the go.
Bottom Line
E-commerce is one of the biggest and most important industries in the world. Considering its size, it seems like cryptocurrency is slowly infiltrating their sector as it provides faster, easier and safer transactions. At the same time, it eliminates intermediaries and facilitates the industry by absorbing technology and innovation.
