Interest in Cryptocurrency is growing fast. With some of the major brands and marketplaces adopting Crypto, this digital payment method is all set to take on retailers across the globe.
While the world might think it is not ready to accept Cryptocurrency, the trend says otherwise. In the last couple of years, Cryptocurrency has played a major role in the global economy. The impact of Cryptocurrency can be seen by the fact that people are thinking of using it in the eCommerce industry.
Whether you are from the eCommerce industry or just dipping your toes in Cryptocurrency, you are already sold on the idea of making transactions more effective with Crypto transactions.
If you are really interested in Cryptocurrency making its way into the eCommerce business, it is important to be aware of what is happening in the Cryptocurrency industry. That being said, Bitcoin Motion can be the perfect place for you to access all the recent happenings in the industry.
The Rising Popularity Of Cryptocurrency In eCommerce
As more and more industries are looking into the potential of Cryptocurrency as a payment method, we can say that Cryptocurrency certainly holds the power to become a major player in the eCommerce industry.
Economic experts predict that the Cryptocurrency market will go beyond $700 billion dollars by the end of 2025. Today, only 4% of the total consumers hold Cryptocurrencies, and only 18000 global businesses accept Cryptocurrencies as payment.
While these numbers might be small, it is expected to increase exponentially in the coming years as more and more businesses start accepting Cryptocurrencies.
What Is The Impact Of Cryptocurrencies On eCommerce
Cryptocurrency makes all your online transactions easier, more effective, and more secure. However, the benefits of Cryptocurrencies in eCommerce business doesn’t limit to this. Besides, it also offers the following advantages.
Transaction Are Recorded
The Blockchain is a secure online ledger that records every transaction made on the network. What;’s more, the Blockchain technology ensures that all the transactions made and data shared are secured.
Because of the public distributed ledger, whenever a transaction is made, it is recorded on the ledger and published on the network for everyone to see.
Transactions Are Quick
Even if you are making online transactions from the bank accounts, the transaction takes time. This is because the process is taken care of by the banks, and transactions are made only after validating the sender and receiver bank accounts.
However, this is not in the case with Cryptocurrency transactions. Blockchain technology helps the user transfer money within seconds with just one click.
Late To No Transaction Fees
Cryptocurrencies are decentralized currencies. This means there is no central party controlling the network. With the decentralized nature of the network, there are no intermediaries to validate the transaction. The Proof-Of-Work consensus automatically validates the transaction. This eliminates the middle man holding any funds and hence, omits any processing fees.
Payment Are Chargeback-Proof
One of the major factors that hurt the revenue of any business is the chargeback. However, with Cryptocurrency transactions, businesses can avoid any charges made by the customers.
Cryptocurrencies are used as virtual currencies, and one can send and receive digital currency when both parties confirm the transactions. Once the transaction is finalized and recorded in the Blockchain, it can’t be reversed.
Because Cryptocurrencies transactions are simple and you don’t need any bank accounts to make any transaction, it offers an attractive feature for users and businesses. Because of these features, Cryptocurrencies can be used in any part of the world as a common currency unit, streamlining international growth for companies and increasing sales value.
Despite the popularity and the benefits, Cryptocurrency has to offer. There is some hesitancy within the eCommerce industry about its acceptance. Perhaps this is because of how volatile Cryptocurrencies can be. The volatility of this digital currency cal results in constant fluctuation of the product’s value.
Another pitfall of Cryptocurrencies in the eCommerce industry is the lack of trust among the people. As we have already said, only 4% of global consumers use Cryptocurrencies. If the consumer number is this low, the eCommerce industry will not be able to take advantage of it.