You’ve probably heard a lot about cryptocurrency ecommerce in the past year. It’s been a hot topic, and for a good reason. Crypto payments are the future of online payments, and if you’re not already using them on your website, you’re missing out on a lot.
Crypto eCommerce is still new, but it’s growing in popularity because it offers many advantages over traditional payment methods.
If you’re unfamiliar with crypto eCommerce or want to learn more about how it works, this post is for you.
In this article, we’ll explain everything you need to know, including how cryptocurrency e-commerce works, how to accept payments in cryptocurrency, the benefits this can bring to your brand, and tips on setting up crypto payments on your website.
We’ll also look at the current state of cryptocurrency and how it’s likely to impact the eCommerce industry in the future. So, keep reading if you’re ready to learn more about this exciting part of innovative technology.
What is cryptocurrency?
You’ve heard about Bitcoin – the first cryptocurrency ever created, but there’s a whole range of cryptocurrencies out there. Cryptocurrency is (mostly) decentralised digital money that uses cryptography to secure its transactions and control the creation of new units.
Cryptocurrency is proving resilient and destined to dominate the eCommerce market. According to economists, by 2025 the global market for cryptocurrencies is expected to reach $57 million.
As of 2022, global crypto ownership rates are estimated at an average of 4.2%, with over 320 million crypto users worldwide. Over 18,000 businesses accept it as payment worldwide, including major corporations like Microsoft, Starbucks, Coca-Cola, Tesla, Whole Foods, Home Depot, etc.
It’s been around for a while now, and more and more people are starting to use it as a payment method. So, if you’re considering implementing crypto payments on your website, here’s what you need to know.
What is cryptocurrency eCommerce?
Crypto eCommerce is a way to use cryptocurrency to pay for goods and services online. This makes it a secure way to pay since a blockchain verifies the payment.
Adding crypto payments to your website is a great way to offer your customers more payment options, attract new customers who are comfortable using cryptocurrency, and make buying your products or services more accessible.
How does cryptocurrency eCommerce work?
When a customer checks out, they have the option to pay with crypto. The payment is processed through a secure system, and the customer’s crypto is converted into dollars or euros, depending on your currency settings.
If you’re wondering if your website can accept crypto payments, the answer is yes. You will need a crypto wallet and an API from a payment processor like BitPay.
How can cryptocurrency benefit eCommerce brands?
Here are a few ways how cryptocurrency can benefit eCommerce brands:
1. Increased security and reduced fraud: Cryptocurrency is secure, and transactions are irreversible. This can help reduce the amount of fraudulent activity taking place on eCommerce websites.
2. Reduced processing fees: Crypto transactions are processed quickly and at a lower cost than traditional payment methods. This can save eCommerce businesses money on processing fees.
3. Increased global reach: Cryptocurrency is accepted in more countries than traditional payment methods. This can help eCommerce businesses expand their reach to new markets.
4. Increased customer loyalty: Cryptocurrency transactions are fast and easy, making it easier for customers to purchase on your website. This can lead to increased customer loyalty and revenue growth.
What do you need to know about crypto payments on your website?
When it comes to crypto payments, there are a few things you need to know to make the process as smooth as possible for your customers.
- Use a crypto eCommerce platform optimized for mobile devices. More and more people are shopping online nowadays, using their phones, and you want to ensure that your site is compatible with their devices.
- Ensure that you’re accepting the correct currencies. Not all crypto eCommerce platforms accept all cryptocurrencies, so it’s essential to do your research and find one that accepts specific currencies.
- Keep your customers’ data safe and secure. Regarding crypto payments, security is of the utmost importance, so you must ensure that your platform has robust security features.
How to use and implement cryptocurrency on your website
Now that you understand more about cryptocurrencies, let’s discuss how you can start accepting them on your website.
Before accepting crypto payments, you need to set up a crypto eCommerce system. This system will allow you to accept payments in cryptocurrencies like Bitcoin, Ethereum, XRP, Cardano, etc., and then convert them into USD to withdraw the funds into your bank account.
The good news is that setting up a crypto eCommerce system is easy. Many companies offer these services, and most have simple-to-use interfaces that will walk you through the process step-by-step.
The first thing you need to do is find a cryptocurrency payment processor. This company’s software will handle all the transactions for you. They will convert cryptocurrency into regular currency, so you don’t have to worry about technical details.
Once you’ve found a payment processor, you must create a checkout page. This is where your customers will enter their payment information. The payment processor will provide the code you need to embed on your page.
Note: You must ensure that your payment processor can accept cryptocurrency. Not all processors have this capability yet. So be sure to check which ones are available before you start accepting payments.
So if you’re looking to expand your payment options and make it easier for your customers to buy from you, adding a crypto payment method to your website is a great way to do it.
How to choose the right cryptocurrency for your eCommerce business
Choosing the right cryptocurrency for your business can be tricky, but it’s essential to do your research and find the option that’s best for you. Here are a few things to keep in mind:
- Consider what currency you want to use. Bitcoin is the most popular option, but others are out there, like Ethereum and Cardano, Tether, USD Coin, etc.
- Make sure the cryptocurrency is secure. This means looking for coins with a good track record backed by a strong team.
- The currency has to be easy to use. Make sure the wallets and exchanges are user-friendly and easy to navigate.
What is the impact of cryptocurrency on eCommerce?
Since it’s still in its early days, it’s hard to say what the impact of cryptocurrency on eCommerce is. But there are good reasons to start accepting crypto payments on your website.
For one thing, as more and more people start using cryptocurrencies, they will only become more popular. So by being an early adopter, you could get a head start on your competitors.
Another reason is that crypto payments are fast and convenient for customers. They can scan a QR code to pay without entering any card details or going through a lengthy checkout process.
Plus, crypto payments are secure and transparent. Transactions are recorded on the blockchain, so there’s no risk of fraud or chargebacks. This could be a significant advantage for eCommerce brands that want to build customer trust.
Opportunities of using crypto eCommerce on your website
When deciding whether to accept cryptocurrency, weighing the risks and benefits is essential. Here are a few things to consider:
- Security: One of the most significant advantages of using crypto payments is its security. Transactions are encrypted, so they’re much more challenging for hackers to infiltrate.
- Speed: Another advantage is that transactions are processed very quickly. This is because they’re verified by the blockchain, a public ledger that keeps track of all cryptocurrency transactions.
- Low Fees: Crypto payments also come with low fees, saving you a lot of money in the long run.
- Convenience: Crypto payments are convenient and easy to set up. Installing a simple plugin can start accepting them on your website in just a few minutes.
What are the challenges of accepting cryptocurrency?
There are a few risks/challenges to using crypto eCommerce on your website. Let’s take a look at each one:
- Lack of customer trust: One of the main reasons why people are hesitant to use crypto payments is that they don’t trust them. They’re worried their information will be stolen or the currency will lose its value.
- Lack of understanding: Many people don’t understand how crypto eCommerce works, which makes them reluctant to use it. They’re afraid that they’ll make a mistake and lose their money. Not everyone is familiar with it yet, so you may want to start small and test the waters before making a big commitment.
- Volatility: The value of cryptocurrencies is incredibly volatile, which means you could lose money if you’re not careful. The value of Bitcoin, for example, can change drastically in just a few hours. So if you’re accepting Bitcoin, you must be prepared to either hang on to it until the value increases or risk losing money if it drops.
- Complicated process: Making a crypto payment can be complex, so some people might not be willing to go through the hassle.
Cryptocurrency is perfect for eCommerce because it’s fast, secure, and global. Accepting cryptocurrency as a payment option will give you a competitive advantage in your niche. Ready to start accepting cryptocurrency on your website? Contact us today!