We’ve all heard the buzz about blockchain and cryptocurrency in recent years. The rise of digital wallets is making way for more convenient and instant payment systems, and as a result, disrupting the way we conduct business. Given cryptocurrency is automatically converted into local currency for merchants when using a payment processor, accepting this form of payment can be pretty seamless for retailers. Despite this, most businesses are reluctant to jump on the crypto train.
If you’re an eCommerce retailer selling online, adopting cryptocurrency as a payment method can enhance your customers’ journey and expand your consumer base by offering more choices at the checkout.
Cryptocurrency is a digital currency that is not controlled by any bank or government but instead uses encryption techniques to regulate its use and generate its release. Every transaction that occurs is verified by users on a network, and generally those transactions become public record to prevent the coin being spent multiple times by the same user. The key to using cryptocurrency is understanding that each coin is different and some coins offer more protection and privacy than others.
eCommerce and cryptocurrency complement each other quite nicely and both appeal to a niche consumer base. As an eCommerce retailer you should view cryptocurrency the same way you view your business. It’s an additional option for those looking for a fast and more convenient way to pay for goods and services. This will help with the increase in high demand for digitally-based payments among an online consumer base.
With cryptocurrency there is no need to go to a bank, withdraw money or even enter a credit card number before submitting a payment at checkout. The same demand that has propelled the online retail world is driving digital payments and, if done so the right way, this could serve as a great compliment to your existing services.
There are some specific advantages to accepting cryptocurrency and one of them is it will enable expeditated transactions. Unlike credit card systems that take a few days to batch out and process, cryptocurrency is processed immediately, giving you much quicker access to funds. Fast transactions can help streamline your business’s cash flow.
Another benefit of offering cryptocurrency as a payment method are the low fees associated with each transaction. The fees can vary depending on whether you accept cryptocurrency to your personal wallet or through a third-party provider like Coinbase, but you will likely still find them significantly less than the fees of services like PayPal or credit card providers.
After a customer completes a transaction with cryptocurrency it becomes difficult to reverse, unless you have the consent of the merchant. This offers retailers more security when it comes to eCommerce fraud, since there is no middle force, such as a bank, that is able to withdraw the funds from your account without your consent.
There are two ways to accept cryptocurrency in your eCommerce store: through your personal wallet or through a third-party payment processor.
If you’re going to accept cryptocurrency through your personal wallet, you’ll need to step up a virtual wallet. Most wallets can be quickly downloaded to your phone or computer, or you can get a hardware wallet. A hardware wallet is a physical safe that stores the cryptocurrency in the device on a special hard drive. It’s really the only secure hardware device that lets you store a user’s private key.
Otherwise, you can use a third-party payment processor, such as Coinbase or BitPay, and they will handle the entire payment process, just as credit card payment processors do.
With BitPay, you can offer customers a smooth checkout experience accepting several types of cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, and more. You can also accept cryptocurrency payments in person, if your business makes any sales face to face.
If you want to keep your business on the cutting edge, it’s definitely worth it to accept cryptocurrency in your online store. Especially since crypto processors like BitPay can protect your business from price fluctuations, so your business won’t risk losing money due to changes in coin value. You can appeal to crypto-enthusiast customers, and boost your brand visibility, with minimal risk.