The world now is becoming more digitalized, in the sense that everything is going more online, and with this, life is becoming easier and better than ever before. Cryptocurrencies and e-commerce are two integral components of the digital economy that are beginning to see more adoption than ever before.
We are now in a world where you can be in your room and order all you want in a blink of an eye online. That would save you a lot of money and stress of going out to look for goods to buy, which is the basis of E-commerce.
E-commerce is simply the process of buying and selling goods and services online. This means every transaction like shopping, pricing, paying, etc., would be carried out online. As both e-Commerce and crypto exist online, they are capable of complementing each other.
Crypto and its purpose
Cryptocurrency, also known as digital or virtual currency, has provided a much more decentralized means of payment, i.e., they are not under the control of any central authority like bank or government but rather use encryption techniques to regulate how users of a network make payments.
It works much like digitized money where you store coins in an online wallet, and each of the transactions is stored in blocks called blockchain, which can be seen by all in the network.
The main purpose of Crypto is for people to be able to engage in trade without the oversight of the government. This technology seeks to resolve the issue of absolute power by distributing power among many people or, even better, among all network members. This is the basic idea behind blockchain technology.
Cryptocurrency and its impact on eCommerce
The emergence of cryptocurrency has brought a drastic change for the better in the world of e-commerce by creating room for a faster and more convenient way to pay for goods and services.
This led various big companies in the world to add cryptocurrency as one of their payment options. Here are the ways cryptocurrencies have impacted the world of E-commerce:
There is one thing about this world today, which is, everybody wants everything as fast as possible, and this applies to e-commerce as well because buyers with their money want to get the goods faster than you can imagine. If the money doesn’t get to the seller fast, the goods wouldn’t be processed down. So, this had been an issue with the use of a Credit card or money transfer.
Traditional payments can take hours or days (for cross-border transactions) for the money to get down to the seller using that channel, which would affect the processing of the goods down to the buyer.
Delay in payments, which delays purchases, can discourage customers from patronizing the trader. Thus, limiting the growth of the business. With the use of crypto, the processing is almost instantaneous, allowing e-commerce vendors to receive payments as fast as possible. This would aid the processing of the goods down to the buyer fast.
Lessening transaction fees
Low transaction fees are another benefit of e-commerce vendors that accept cryptocurrency as a payment method. The fees depend on whether you accept cryptocurrency to your personal wallet or through a third-party payment gateways provider like NOWPayments.
Still, no matter how you accept cryptocurrency, you’ll find the fees low. This also goes around to the buyer. They also have low fees for their transactions compared to the use of credit cards and other channels.
Once a customer has completed a cryptocurrency transaction, it is difficult to reverse unless you have the merchant’s consent. This provides retailers with more security for eCommerce fraud because there is no middle man, such as a bank.
Accepting cryptocurrency as a payment method by some businesses has given them access to an entirely new market of tech-savvy consumers engaged within the cryptocurrency community.
It also allows them to accept payments from any part of the world, allowing your customers from other countries not to worry about the exchange rate because it doesn’t apply in crypto. By integrating payment solutions like NOWPayments e-commerce merchants can accept up to 100 different cryptocurrencies.
While e-commerce has been in existence as far back as 1969, there have been lingering issues of transaction speed and security. And, one of the main aims of e-commerce is to be able to get goods and services quickly and faster, but the invention of crypto contributed to solving this issue. Cryptocurrencies now provide faster, cross-border transactions, with negligible fees for e-Commerce platforms. You can implement a crypto payment gateway thanks to NOWPayments.