Whether you are a crypto king or are still in the learning phase, you may have thought of accepting BTC as payment for your online store at one point or another. With the all buzz around digital currency, NFT, and blockchain, all the store owners of e-commerce should at least accustom themselves to the trend of crypto adoption by ecommerce 2022.
Despite the latest fluctuations in digital currency values, large e-commerce channels such as WooCommerce, BigCommerce, and also Shopify already support digital currency payments using digital currency payments such as BitPay, Coinbase, CoinPayment, and GoCoin.
In this article, we will briefly talk about the crypto adoption by ecommerce and also talk about the advantages and disadvantages that it brings with it.
E-commerce stands for electronic commerce. It is the purchasing and selling of merchandise over the web network. It also includes the transfer of funds and also the keeping of records to verify the transactions that have been made.
E-commerce is primarily of three types: B2C (business to consumer), B2B (business to business), and also B2G (business to government). The primary reason for using digital currencies in e-commerce is to get rid of the third parties that handle the transactions. This relation and the crypto adoption by ecommerce make online shopping much more convenient and safer as blockchain technology is safe from any type of cyber attacks.
Crypto Adoption By Ecommerce: The Hype
The latest “legitimization” of digital currencies has led to its acceptance amongst some of the largest enterprises across the globe. Mastercard recently declared that it will include digital currencies into its network and has also bet big on non fungible tokens and other virtual payments, currencies, and assets.
Tesla also recently toyed with the notion of accepting BTC payments, before taking a step back because of the environmental issues across the mining of the currency. This attention, coupled with the democratization of currency acquisition puts the latest ‘digital economy’ top of mind for the public.
The aim of digital currencies on security looks to be a tailor made compliment for e-commerce, which has surpassed the issues of the purchaser that prevailed in its inception but is also constantly searching for ways to make its procedure more secure and instant. So if you wondered why is cryptocurrency valuable, we hope you got your answer by now.
This natural partnership has already commoditized some of the trendsetting digital stores, and even brick-and-mortar stores, which enable digital currency payments. This usually leads to users asking how it operates out of sheer curiosity, states Jad Mubaslat who is the founder of BitQuick.co.
Crypto Adoption By Ecommerce: The Good Influence
Many e-commerce entities such as Amazon, Overstock, Tiger Direct, and New Egg have begun to use BTC and other cryptos as a form of payment. Despite the prevailing risk included with the volatility of values of digital currencies, these entities understand the benefit this union could bring. These benefits include:
Digital currencies function 24 hours a day across the year since the user can automate them. Also, their transaction times are almost instant. Using this technology in e-commerce will hence cut the time it requires for preparing goods for delivery.
Alternatively, this will also be beneficial to the seller as they deliver more goods to their users each day.
Blockchain technology prevails to disrupt many sections of our lives. It offers a platform for creating solutions to the challenges that we face presently. Take the example of crypto wallet hacks. Programmers who are quite a tech savvy can avail crypto wallets and clean them out. Having said that, blockchain technology allows the development of innovation that helps to restrain such challenges.
It has done so via the sale of NFT (non fungible tokens) and elements using the blockchain technology. In Hollywood, movie studios are utilizing smart contracts to manage the distribution of movies. Musicians are also employing Smart contracts to restrain copyright problems in their pieces of art.
Streamlining Online Shopping
International transactions are costly and bulky, and it takes too long to fulfill as well. But digital currencies can alter that. They are open to the use of all and transcend the geographical boundaries of the transacting users. International payments also help in opening up the latest markets in developing nations for e-commerce businesses.
The use of digital currencies for international trade will discard the requirement for costly currency conversions. Cryptos have a uniform valuation in all nations. They are the alterations that global businesses require to adapt to enhance the quality of their services and hike productivity.
Cutting Transaction Costs
This is another benefit of crypto adoption by ecommerce. International financial system transfers attract high charges. The banks levy high charges that discourage users. This situation offers one of the largest challenges that online businesses encounter. Since users have varied buying power, extra taxes or fees might scare some away.
The interchangeable fees and discounts are a nightmare for both the buyer and seller. The seller might also receive interchangeable charges from the bank that issues it. This occurs when the user is looking for foreign money to purchase their stocks overseas.
Transactions of credit cards are also not very friendly since they issue charges such as payment gateways and credit card network charges. But since digital currencies have much lower gas charges, they will make international transactions more pocket friendly.
Crypto Adoption By Ecommerce: The Bad Influence
Despite the appeal of digital currency, it has its disadvantages, which could create obstacles to the crypto adoption by ecommerce. So here are the disadvantages of crypto adoption by ecommerce.
While the value of fiat currencies such as the U.S. dollar fluctuates only slightly, digital currencies are highly volatile. We have recently witnessed massive upward swings, but a prominent drop could pose a big risk for e-commerce retailers who require the cash flow for inventory replacement and other day-to-day functions.
No Buyer Protection
When it is about the fraudulent chargebacks and buys, users have enjoyed security from credit card entities in the scenario of unauthorized expenditures. Crypto payments have no security or recourse; like a wire transfer, when it is gone, it is gone. Hence, users may need more trust in the retailer or brand prior to using digital currency as a payment.
BTC mining, crucially what boosts the digital currency system, consumes more electricity each year in comparison to the country of Argentina and has a carbon footprint as big as the country of New Zealand. Lately, Elon Musk created the value of BTC to plummet after declaring that Tesla will no longer accept Bitcoin because of environmental issues.
Digital Currency Taxes
Even though BTC is not subject to regulations, the government needs you to report your BTC transactions and the revenue or loss from holding the “property” – as announced by the IRS.
As per the IRS,
“A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received.”
Crypto Adoption By Ecommerce Made Easy: How To Accept BTC On Your Business
To begin to start accepting BTC on your ecommerce website, simply incorporate a BTC payment processor into your store. Big e-commerce that accepts Bitcoin includes Shopify, Overstock.com, WooCommerce, and many more. Most of the ecommerce channels have existing integrations, so ensure to look for that in their app store. Be sure to evaluate varied Bitcoin payment gateway solutions. There are various cryptocurrency ecommerce plugins free 2022 that you can look at. Take into account the following:
- Supported countries,
- Transaction fees,
- Payout frequency,
- And customer support
- Supported currencies,
Once you accept Bitcoin as a payment option, ensure to market your progressiveness and also your tech-savviness to your user base. You can portray signs on your website that says “Bitcoin accepted here”. The best cryptocurrency for ecommerce is always Bitcoin as its rate of adoption among the masses is huge. If you are unable to integrate directly to your store, then consider alternative avenues like the following:
- Payment Buttons: Add a payment button to your online business, consider using the Coinbase API for creating your Bitcoin button.
- Custom Integration: Construct an API Bitcoin solution that integrates directly along with your shopping cart.
- Invoices: Invoice your users instead of shopping carts. Coinbase offers an invoice generator tool as well.
So is crypto the future of ecommerce? Digital currencies are the tool of change that is required by the investors to embrace in a shift to enhance their business results. Do not ignore the benefit of incorporating digital currencies into your e-commerce business. When applied well, digital currencies can evolve your business in prominent ways. Since the crypto adoption by ecommerce has increased, now is the ideal time for all local and international business owners to start adopting blockchain technology.
We conclude that blockchain technology and digital currencies are indeed the future of online businesses. Deciding whether to adopt this technology or not is a personal choice. One tithing, in this case, is evident though, that adopting this will increase your profits.
Frequently Asked Questions On Crypto Adoption By Ecommerce
1. Can crypto be used on ecommerce?
The latest “legitimization” of digital currencies has led to its acceptance amongst some of the largest enterprises across the globe. Since it is completely decentralized, the security concerns, in this case, can be looked down at.
2. How is crypto changing ecommerce?
The aim of digital currencies on security looks to be a tailor made compliment for e-commerce, which has surpassed the issues of the purchaser that prevailed in its inception but is also constantly searching for ways to make its procedure more secure and instant.
3. What companies are adopting crypto?
The adoption of cryptocurrency in ecommerce 2022 has already increased. The various ecommerce accepting cryptocurrency include WooCommerce, BigCommerce, and also Shopify.