What will cryptocurrency mean for e-commerce in the future?
As the global adoption of cryptocurrency takes huge strides forward, cybermoney is attracting increasing interest and also offers enormous potential for e-commerce. Read on to find out what online retailers need to know about it.
Cryptocurrency is breaking into the mainstream on a global level.
Although cybercurrencies will be more tightly regulated in future in Europe, the anticipated death blow will no longer fall – the EU-wide ban that has long been feared by observers and cryptocurrency users is off the table. The U.S. state of Virginia has passed a new bill allowing banks to offer crypto services, and payment provider Visa is starting to test the water in Latin America when it comes to spending and purchasing cryptocurrencies with a card. A major study conducted by U.S. crypto exchange Gemini has indicated that more and more people around the world either hold bitcoin and other cryptocurrencies or are extremely interested in purchasing them.
All of these developments show that crypto is increasingly being accepted and adopted in the mainstream.
The value fluctuations that have been the subject of much recent discussion have also done nothing to diminish this euphoria. Rather than being a disadvantage of virtual payment methods, the fluctuations in cryptocurrency exchange rates are a natural process that is driven by general economic developments and that also affects other assets.
Advantages of cybercurrencies in online retai
There’s no doubt that the blockchain technology underpinning virtual currencies offers a host of advantages. E-commerce providers who have already integrated digital currencies as a payment method in their business model are benefiting from the following positive effects:
- Records and fees: The process of recording payments that are received in cryptocurrency is faster for retailers. One reason for this is more streamlined transfer processes thanks to what are referred to as ‘smart contracts’ – digital contracts between buyers and sellers that are stored on blockchain. This means that automated transactions are handled immediately, so an intermediate step to trigger payments is no longer required – eliminating the related costs.
- Security: Blockchain technology also ensures that all transactions can be tracked and are fully traceable. Copies of the relevant data are stored in real time on several computers, creating a secure record that ensures the data cannot be manipulated.
- International payments: Cryptocurrency simplifies processes involved in international payments, meaning higher sales and more customers for online retailers who sell abroad.
- New customer segments: The acceptance of digital payment methods also opens up completely new target groups, enabling online retailers to acquire new customers. The Gemini study indicated that interest in cybercurrencies for online purchases is particularly high among the 18 to 35 age group. Another benefit is that younger customers who pay with digital money tend to order more than customers using other payment methods.
Given the facts outlined above, it’s no wonder that financial experts are now talking about when cryptocurrency will become an everyday payment method rather than about if it will.
Amazon is leading the way – will YOU follow?!
There are a few e-commerce providers with a modern setup who have already recognized the huge potential of cryptocurrency for their businesses – and e-commerce giant Amazon is one of them. It announced in June 2022 that it also intends to accept virtual currencies as a payment method in the future, and this announcement was received enthusiastically by cryptocurrency users.
One member of the Twitter community stated: “This is the start of a new era for the wonderful world of cryptocurrency. Bitcoin will replace the Dollar within the next 12 months.”
If cryptocurrency as a mass payment method reaches the global capital market, that will revolutionize all existing payment structures. If you want to be part of this revolution, then you need to engage with the various usage scenarios as quickly as possible, so you’re ready for the future of e-commerce.