Table of Contents
- 1 Look forward to a brighter future for your online store
- 2 Attract tech-savvy millennial
- 3 Get faster access to your funds
- 4 Benefit from lower transaction fees
- 5 Enjoy a broader customer base
- 6 Join other companies that are already doing so
- 7 Have full control of your money
- 8 Keep away from chargeback and fraud
Do you own an online store or an e-commerce website? Have you heard about cryptocurrencies as alternative payment methods? If you haven’t, we discuss here 8 reasons to accept cryptocurrency payments on your e-commerce store.
But first, taking into consideration that you are new to cryptocurrencies, let us first give you a short background for you to understand it. Cryptocurrencies, according to Investopedia, are virtual currencies that correspond to ledger entries that are inside a secure payment system. It comes from the word “crypto” which refers to cryptographic techniques and encryption algorithms that make it possible for these entries to be safe. Aside from the most popular Bitcoin (BTC), other important cryptocurrencies include Bitcoin Cash (BCH), Ethereum (ETH), Stellar (XLM), Cardano (ADA), Binance Coin (BNB), Tether (USDT), Monero (XMR), and Chainlink (LINK).
Why use these as alternative payment systems? Here are the 8 reasons to accept cryptocurrency payments on your e-commerce store:
Look forward to a brighter future for your online store
As an e-commerce vendor, you must be able to continuously adapt to the digital marketplace as it is changing—and growing—every time. You must be able to stay updated—or get ahead—to ensure a good future for your company. As the majority of customers now opt to make their purchases using their mobile phones or tablets, you must always be ready to process payments in ways that consumers prefer. Therefore, as new technologies now make way for cryptocurrencies, your e-store must have the capability to accept cryptocurrency payments. This way, you are opening—and securing—growth for your business.
Attract tech-savvy millennial
If your online store is already accepting payment options like Apple Pay and Google Pay, consumers already find your store going with the trend. So, what if you allow cryptocurrencies as payment methods as well? Then, your store will look more attractive and cooler in the eyes of every tech-savvy millennial!
Get faster access to your funds
As a vendor, e-commerce or not, you prefer to have access to your funds as quickly as possible so you can manage them easily. Unfortunately with credit card systems, this is not the case. You may have to wait for a few days before the payment is processed. This is not the case with cryptocurrencies because it promises faster transactions. Therefore, they make it easier for you not only to have access to your money but to take charge of your business’s cash flow. You can readily make a withdrawal of funds, eliminating the need to wait.
Benefit from lower transaction fees
Investopedia writes that for every credit card transaction, you, as a merchant, bear the transaction fee or the so-called swipe fee. When purchases are made in-store, Visa, Discover, and Mastercard deduct an average of 1.95% to 2%. For online purchases, however, the rates are higher at about 2.3% to 2.5%. If you are a business with low margins, it’s sufficient to say that this transaction takes the most of your profit. With Bitcoin, the transaction fee is generally lower at below 1%. One reason for this is there is no intermediary institution or government involved during the transaction. You also have to take into account that these low fees also include the conversion of the cryptocurrency into local currency. So, if you retain this payment into Bitcoin, you will not incur fees for the conversion.
Furthermore, with lower transaction fees, you can start accepting international payments from consumers all around the globe. You no longer have to worry about cross-border fees as you used to if you will accept cryptocurrencies as payment methods.
Enjoy a broader customer base
With tech-savvy consumers preferring to pay for their online purchases using their digital wallet and you, as a seller accepting cryptocurrency payments, you are, therefore, expanding your customer base. Not only are you able to accept credit card users, you are also able to welcome those that are ready to make a purchase and pay using their cryptocurrencies through their digital wallets. Remember, those who have cryptocurrencies in their digital wallets will want to spend them. Basically, they will choose to buy in stores that accept them as payment options.
Join other companies that are already doing so
Regardless if your company is small or big, hundreds of thousands of enterprises are already accepting cryptocurrencies. In the US, at least one-third of small- and medium-sized businesses are doing so. The 99Bitcoins website offered a list of major companies that accept Bitcoin as payment that included Wikipedia, Microsoft, Burger King, AT&T, Overstock, KFC, and Subway. So, why can’t you when it will work to benefit your e-commerce store? This is already a vital reason for you to grab this new opportunity to grow.
Have full control of your money
Conventional currencies carry multiple restrictions and risks. For instance, when your bank crashes, you may be able to recover your money but only up to its coverage limits. Therefore, you are not in full control of your money. This is unlike cryptocurrencies like Bitcoin as they promise user autonomy. Why? It has no connection to any government policies.
Keep away from chargeback and fraud
Chargebacks and frauds are issues businesses do not want to deal with but can’t avoid. With cryptocurrencies as alternative payments, these will be a thing of the past. Each transaction is made on a blockchain as a block, which then undergoes verification and is secured. Therefore, it is not possible for a cryptocurrency user to buy your products without money to pay for them.
With these 8 reasons to accept cryptocurrency payments on your e-commerce store, you may already feel the excitement to start your way through it. But before you do, Timothy Zeilman, in a survey conducted by HSB, where he is the vice president, cautioned small business owners before accepting cryptocurrency. They must understand the technology first and ensure data security and insurance as protection against financial loss and cyber fraud.