Why you should accept bitcoin payments on your e-commerce? Know reasons to accept Crypto payment. There is no doubt or buzz around blockchain and security; the rise of digital is paving the way for more immediate and immediate payment; and, as a satisfying result, managing the way we run the systems.
Since cryptocurrency is automatically converted into local currency for merchants using a payment processor; accepting this form of payment can be pretty simple for investors. Despite this, most have not yet been able to board.
Why You Should Accept Bitcoin Payments on Your Ecommerce? Reasons To Accept Crypto Payment
If you are on an e-commerce journey selling online. Adopting cryptocurrency as a form of payment can improve your customer base and expand your customer base. By giving you more options at checkout. Here are some reasons to implement this service in your e-commerce business.
What is cryptocurrency?
For starters, it can help define cryptocurrency. No bank controls a Blockchain digital currency or government. But it uses encryption techniques regularly and does not generate its release.
So, users on a network verify every transaction that even takes place. Typically, transactions became public records to prevent users from spending multiple times. The key to using cryptocurrency is that each currency is unique. Moreover, some may offer more protection and privacy than others.
How to use Bitcoin payments in e-commerce
E-commerce complements each other as Bitcoin payments are the same home and user with digital experience. As an e-commerce reseller, you should view cryptocurrencies the same way you view your business. It is an additional option for anyone looking for a faster and more convenient way to pay for goods and services. This shows a high demand for digital payments.
With a cryptocurrency, there is no need to go to a bank. Withdraw money or even enter a credit card number before submitting payment at checkout. The same demand that drove the world of online retail is driving digital. So, if done right, this can serve as a great complement to your existing ones.
Benefits of accepting Bitcoin payments in e-commerce
Let’s see the benefits of accepting Bitcoin payments in e-commerce:
1 – Accepting Bitcoin payments opens up your market
It is still relatively early days to accept cryptocurrencies in e-commerce stores. Which could attract new demographics that want to be at the forefront. And by the looks of some of the surveys that reports, these groups are here to spend.
According to a 2020 Forrester survey, accepting Crypto will attract new customers. Increase average order value, and double purchases from credit card purchases. And in 2021, the Cryptocurrency Payments Report found that 31% of cryptocurrency holders. So, make purchases ranging from $ 100 to $ 1,000, and 19% make purchases in excess of $ 1,000.
Adding a payment option – especially such a new one – is not a decision to be taken lightly. Cryptocurrencies face all kinds of criticism, including their use in illegal activities. Volatility in exchange rates, and the vulnerability of their underlying infrastructure.
Also, there is no central database to store it because it is virtual. This means that if the stored hard drives are lost or destroyed, they can be lost. What makes cryptocurrencies attractive as a payment method for e-commerce is the ease with which funds can transfer from one location to another without the need for a third-party financial institution.
It’s unclear if cryptocurrencies are really the future of traditional commerce, but like most new technologies, change happens slowly and at once. So it’s better to prepare than to leave it behind. Bitcoin is becoming more popular day by day, and now there’s even a site dedicated specifically for all things bitcoin! Bitcoin Prime provides visitors with information on how they can get started using this cryptocurrencies or just learn about its history.
2 – Fast transactions
And unlike credit card systems offering a few days to deliver and process, a cryptocurrency process immediately and faster access to funds. As a result, transactions can optimize your company’s fast cash flow.
3 – Low rates
Another benefit of offering cryptocurrency payment methods is the fees associated with each transaction. Providers may vary services to accept cryptocurrencies in your person or through a third-party credit provider like a wallet service. But likely still as transfer fees significantly like PayPal or credit card providers.
4 – By accepting Bitcoin payments you have more security
Once a customer completes a cryptocurrency purchase, it isn’t easy to reverse unless you have the merchant’s consent. This gives merchants more when it comes to fraud as there is no electronic security, such as a bank that can withdraw funds from your account without your consent.
Risks of accepting cryptocurrency
Cryptocurrency has its downsides. And here are some of the risks of accepting Bitcoin payments in e-commerce.
Technical barriers
You need to set up a digital wallet on your digital exchange to accept cryptocurrencies. However, this may be technically prohibitive for small business owners new to technology. In addition, cryptocurrencies are dense information fields with relatively steep learning curves; which can be a significant hurdle if you are trying to run a business.
So, as it stands now, small businesses, in particular, would find it challenging to accept cryptocurrencies; and even without the technical hurdles, the volatility of cryptocurrency values still creates a disincentive for entrepreneurs to hold digital currencies.
Cryptocurrency volatility
The most significant risk of digital currency is price volatility, which makes its value extremely unpredictable. For example, Bitcoin was first valued at cents in 2009 but rose to over $65,000 per coin in February 2021.
Trading service companies such as BitPay and Coinbase can help protect small businesses from this fluctuation by instantly converting digital currencies into cash values. Cryptocurrency payments in real-time concerning the currency’s current value through these services.
The only reason a company would hold onto cryptocurrency would be as a speculative investment, Wolanow said, but that essentially amounts to playing with its revenue stream.
Regulatory uncertainty
Another problem with accepting cryptocurrencies is that the regulatory landscape will likely change shortly. Lawmakers are currently drafting regulations to govern it. So, once regulations are in place, they are likely to evolve further, which means business owners will have to adapt.
As cryptocurrencies are relatively new, there is a lot of uncertainty about how the government will solve problems in their regulation. In fact, and could pass new regulations by reading this. In addition, and will not universally accept cryptocurrency until companies are sure they know how to report earnings; and pay proper taxes on cryptocurrency transactions.
Changes in cryptocurrency regulation are likely to continue as cryptocurrency adoption expands and new problems and difficulties arise.
How to accept cryptocurrency
And so, if you decide to go ahead and start accepting cryptocurrencies, there are a few steps you will need to take. Overall, the process is similar to that of a credit card processing company.
So, firstly you’ll need to decide if you want to use a processor to accept payments; or if you want to take them manually. Using a processor will simplify the process; you will need to register with a company like BitPay or PayPal to start accepting payments.
Alternatively, you can accept cryptocurrency payments for your small business manually, but the process is a little more complicated. So, first, you will need to create an account with a cryptocurrency exchange (like Coinbase). So that customers have a place to send their payments, you can then add functionality to your website (like a QR code) so that customers can send cryptocurrencies to your exchange account.
Finally, you need to take steps to withdraw cryptocurrencies from your exchange account by moving them to your digital wallet; or converting them to dollars and transferring the funds to your business bank account.
Top cryptocurrencies to know
So, to accept Bitcoin payments in e-commerce, you need to know the top cryptocurrencies; digital currencies are an ever-changing realm, with new coins being released weekly; and current currencies constantly losing and gaining in value. However, according to the latest cryptocurrency economics news, the following coins are the top ones based on market capitalization:
Bitcoin
Bitcoin is the currency that started it all. Before it happened, its creator, Satoshi Nakamoto; elaborated on the idea in an article titled “A PeertoPeer Electronic Cash System” in 2008. Nakamoto wanted to create a system that would decentralize the financial sector and give back to people. Transaction system.
Ethereum
Ethereum was a currency created based on the invention of Bitcoin. Its creator, Vitalik Buterin, wanted to develop a platform that would completely transform the Internet.
He envisioned Ethereum as a platform used beyond the financial transactions allowed by Bitcoin. The Ethereum platform has become a place for developers to build decentralized applications such as contracts and code without using a third-party platform.
Dogecoin
Beginning as a prank by software developers Billy Marcus and Jackson Palmer, Dogecoin has grown into a currency in its own right. Based on Dogecoin’s meme, Dogecoin has evolved from a satirical commentary on cryptocurrencies to a legitimate investment opportunity becoming more popular than the creators expected. Of course, some people still yell, but with the support of Elon Musk, Dogecoin is taken seriously.
XRP (Rip)
So, XRP, also known as Ripple, is an independent digital asset stored in an XRP distributed cryptographic ledger powered by a peer-to-peer server network. XRP is designed to allow users to send money digitally and is not affected by the high transaction costs and conversion times of Bitcoin.
And XRP is a currency that can be bought and sold publicly and allows people to send money quickly; and safely worldwide. Unfortunately, XRP is often confused with its creator, Ripple Labs; and you need to know that the coin is entirely independent.
Bitcoin Cash
Bitcoin Cash is very similar to Bitcoin, but there are significant differences between them. For example, Bitcoin Cash can handle more transactions by increasing the size of the block. So, by increasing the number of transactions, Bitcoin Cash wants to compete with industry giants like Visa and PayPal.
Bitcoin payments: Conclusion
So, accepting Bitcoin payments in your e-commerce is worth it to keep your business ahead of the curve. Mainly since a cryptoprocessor like BitPay protects your business from price fluctuations, your business is not at risk of losing money due to changes in the value of your currency. In addition, you can attract passionate cryptocurrency customers and increase your brand awareness with minimal risk.
And so, if you want to know more about accepting payments on our website; download the following digital wallet and free ebooks on alternative payments.
