7 Benefits of Accepting Cryptocurrency for E-Commerce Businesses
There’s no doubt that cryptocurrency has grown exponentially over the past decade. Far from being a niche digital currency, crypto coins are now being used not only to trade with fellow cryptocurrency users but also to make purchases for goods and services. Data gathering platform Statista even projected that the number of cryptocurrency users worldwide will reach up to 861 million by 2025, further proof of the crypto market’s continued growth.
With the number of cryptocurrency users increasing rapidly, it is high time that more e-commerce businesses start accepting crypto coins as part of their payment options to maximize the benefits that this digital currency has to offer. If you’re an online business owner still on the fence about whether or not to accept crypto payments, then here are some benefits that might help convince you.
1. Access to a Global Customer Base
Cryptocurrencies are decentralized and operate on a blockchain, meaning they aren’t tied to just one country or banking system. Thus, by accepting crypto payments, you’re able to expand your e-commerce business’s reach to a wider customer base. In particular, customers from countries where traditional payment methods are limited or come with expensive fees can instead use their crypto assets to transact with you.
The universal nature of cryptocurrency also eliminates regional restrictions. For instance, despite how popular PayPal is as a payment platform, it’s not available in several countries. Meanwhile, cryptocurrency users can use their funds to transact with your store whether they’re using a Bitcoin, Ethereum, or XMR wallet so long as they have internet access.
2. Reduced Transaction Fees
Traditional payment processors can take a hefty cut from your transactions, with some charging transaction fees of up to 5%. International transactions can even incur additional fees.
In contrast, cryptocurrency fees are significantly cheaper than traditional payment methods. This allows you to keep more of what you’ve earned, thus improving your business’s profitability. The lower transaction fees can also be a huge plus for customers, seeing as it can help you offer your products and services at more competitive prices.
3. Faster Payment Processing
Some traditional payment methods, particularly international transfers, may take several business days to reflect due to bank clearance policies. This leads to unnecessary delays in transactions that can impede your business’s cashflow. Cryptocurrencies can offer your business faster payment processing, with transaction times ranging from an instantaneous transfer to a few minutes depending on the crypto network used.
For e-commerce businesses that often deal with fast-paced transactions, faster payment processing is a must to improve turnaround times. It also helps you access funds quicker and thus allow you to better manage your inventory and operational costs.
4. Enhanced Security and Fraud Prevention
Security is always a top concern among users who frequently transact on e-commerce platforms. It’s also the reason why many people opt to use cryptocurrency for their online transactions, as their crypto assets are inherently secure due to the cryptographic processes used in blockchain technology. Hence, by accepting crypto payments in your online business, you’re able to attract security-conscious buyers by offering them a payment option they feel safe to use.
Crypto payments are also irreversible, meaning that once a transaction is confirmed and recorded in the blockchain then it cannot be altered. Seeing how chargeback fraud is a common issue among e-commerce businesses, accepting crypto payments can lessen the risk of your business being at the receiving end of chargebacks.
5. Attracting Tech-Savvy and Privacy-Conscious Customers
Many cryptocurrency users are individuals who value alternative financial solutions as well as privacy over their personal transactions. Accepting cryptocurrency payments can help make your e-commerce business an appealing option to both demographics. For one, it can show tech-savvy customers that your business is modern, innovative, and responsive to digital trends. Meanwhile, privacy-conscious customers will certainly appreciate that they can transact with your business with little to no disclosure of personal information through their crypto funds.
6. Capitalizing on Marketing Opportunities
Not all businesses are open to accepting crypto payments just yet, so adopting this payment option can give your business a unique marketing advantage. By highlighting that your e-commerce store accepts cryptocurrency, you can generate positive buzz around your business and position yourself as a forward thinker. In turn, this can attract cryptocurrency users who wish to support businesses that are adapting crypto in particular, giving you an instant edge against competitors.
7. Future-Proofing Your Business
The rapidly growing crypto market can indicate a shift to broader adoption in the future. By making the necessary adjustments to accept crypto payments as early as now, you’re essentially futureproofing your business and helping it stay relevant as more customers potentially start shifting toward crypto as their preferred payment method. In addition, early adoption also helps you avoid the potential costs and disruptions associated with rushed integration later.
Accepting cryptocurrency as a payment option provides your e-commerce business with a unique opportunity to grow your customer base, reduce costs, tap into new demographics, and offer more value to your customers. By adopting cryptocurrency payments, your business can enjoy the benefits highlighted in this article while thriving in today’s rapidly evolving digital economy as well.
