Cryptocurrency, also known as “virtual currency” is drastically making its way into the market. There are lots of investments taking place every day showing people’s interest in cryptocurrency worldwide. According to a report, the worldwide cryptocurrency industry is expected to increase at a CAGR of 12.8 percent, from $1.49 billion in 2020 to $4.94 billion in 2030.
“The Blockchain Technology could change our world more than people imagine”
– Jack Ma, Co-founder of Alibaba
With all of the hoopla around cryptocurrencies and blockchain, it has become essential to understand what cryptocurrencies are and how they can be utilised for online transactions.
Cryptocurrency is a digital currency that works by encrypting data. It is not regulated by the government or any bank, instead, it employs a decentralized system to log and verify transactions. You can also say that all the transactions are handled peer-to-peer.
Every transaction is validated by network users, and in most cases, such transactions become public records to prevent the same user from spending the currency several times. Understanding that each coin is unique and that certain currencies offer greater safety and privacy than others is crucial to adopting cryptocurrency.
Bitcoin is the original cryptocurrency developed by Satoshi Nakamoto. Through a digital transaction system, Nakamoto sought to decentralise the financial industry and return authority to the people.
“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.”
– Leon Luow
Ethereum is a currency that was established as a result of the development of bitcoin, however, it is more energy-efficient. Vitalik Buterin, the project’s inventor, intended to create a platform that would completely revolutionise the internet.
Dogecoin was started as a joke, a Doge meme by software programmers Billy Markus and Jackson Palmer. However, with time it has grown from a humorous take on cryptocurrency to a viable investment option, beyond its creators’ expectations.
XRP, commonly known as Ripple, was created to let users transmit money digitally without the high transaction costs and conversion periods associated with bitcoin. It is a decentralized digital asset that is operated by a network of peer-to-peer computers.
E-commerce and cryptocurrencies complement each other well, according to the technologically informed customer. With the growing demand for digital payments among internet customers, it is an alternative method for individuals searching for a quick and easy method to pay for products and services.
There is no need to travel to a bank, withdraw money, or even input credit card information before completing payment at checkout when using bitcoin. Digital payments are being driven by the same need that has fueled online shopping, and if done correctly, might be a terrific complement to your present offerings.
The number of people who own and utilise cryptocurrencies is steadily increasing throughout the world. Allowing consumers to pay using their crypto wallet on your site might broaden your target demographic and attract new client traffic. Early acceptance of crypto payments may provide you with an advantage over your competition and allow you to win the loyalty of this customer base before your competitors.
Unlike credit card systems, which take a few days to batch out and process, Bitcoin is handled instantly, allowing you to access payments much faster. Fast transactions can help your company’s cash flow run more smoothly.
Blockchain transactions are significantly less expensive than regular e-commerce transactions. When brands use Razorpay or Paypal to handle transactions, they pay an average of 3-5 percent per transaction, compared to roughly 1% for bitcoin transactions. The costs will vary depending on whether you accept cryptocurrencies into your personal wallet or through a third-party source like Coinbase, but they will almost certainly be cheaper than those charged by PayPal or credit card companies.
By employing encrypted wallet addresses, cryptocurrency enables anonymous purchases – it’s essentially the same as using unmarked cash. This lets your consumers purchase things without revealing their personal information, and it allows you to conduct business without fear of violating any privacy laws.
Unless you have the merchant’s permission, it’s tough to reverse a bitcoin transaction once it’s been completed. This gives shops additional protection against E-commerce fraud since there is no middleman, such as a bank, who may remove cash from your account without your permission.
A number of well-known companies, markets, and payment processors have already begun to accept Cryptocurrency as payment.
eGifter- eGifter, a prominent participant in the field of gift card exchanges, was one of the first to take bitcoin in 2014. The company’s leadership has long believed in bitcoin’s ability to revolutionise payments. It is expanding its digital currency payment options by adding dogecoin and litecoin to the mix.
Overstock- Overstock was the first big online retailer to adopt bitcoin in early 2014 by taking crypto payments in the United States.
PayPal- In March 2021, PayPal introduced “Checkout with Crypto,” a tool that lets PayPal’s US clients pay online businesses with their cryptocurrency. All cryptocurrencies may be held in the PayPal digital wallet and converted to fiat cash with no additional transaction fees at checkout.
Expedia- Expedia has begun accepting payments for over 700,000 hotels and lodgings using (more than 30) cryptocurrencies, thanks to a collaboration with crypto-friendly travel booking site Travala.
eBay- eBay revealed earlier this year that they are considering adopting cryptocurrencies as a means of payment in the future.
Many E-commerce stores have also started accepting Cryptocurriencies as payments such as Shopify, WooCommerce, BigCommerce and Magento.
Accepting cryptocurrencies in your eCommerce business can be done in two ways:
Personal wallet- You’ll need a virtual wallet if you want to accept cryptocurrencies through your personal wallet. You can purchase a hardware wallet or download most wallets fast to your phone or PC. A hardware wallet is a physical safe that keeps bitcoin on a specific hard drive within the device. It’s actually the only safe hardware device for storing a user’s private key.
Third-party payment processor- Third-party payment processors like Coinbase or BitPay, manage the full payment process, much like credit card payment processors.
One advantage of using a third-party payment processor rather than a personal wallet is that they may convert cryptocurrencies into cash instantaneously, avoiding price fluctuations.
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