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Everyone is aware of crypto these days. Once obscure, these digital assets are quickly being integrated into the mainstream, especially in the e-commerce space. The industry is predicted to grow from its previous perception as a niche investment for technology enthusiasts to $2.9 billion by 2030.
The increasing digitalization of various aspects of life requires the recognition of virtual currency as an authentic asset, and not just a passing fad. This article explores why the e-commerce industry is open to accepting crypto as a viable payment solution, and the benefits it offers.
Potential of Crypto Payments
The unpredictable adoption rate of cryptocurrencies makes it difficult to estimate the size of the market. The Global Crypto Adoption Index indicated that adoption peaked in the second quarter of 2021. However, driven by economic concerns and market instability, cryptocurrency ownership showed significant fluctuations.
According to statistics, the percentage of crypto ownership among adults in the United States has fallen slightly from 33% in 2022 to 30% in 2023. However, with 60% of respondents saying they are familiar with the idea, it seems likely that its use of digital currency will increase as the technology becomes more widely available.
However, cryptocurrency usage is still quite low. According to the same study, 38% of cryptocurrency users were lured to the technology, while only 13% of users purchased crypto for use in online transactions.
Ecommerce aims to overcome the disadvantages of conventional payment methods to improve consumer experience. As online trading needs change, cryptocurrencies provide a viable way to execute transactions faster. This and declining trust in conventional institutions suggest that future perceptions and use of cryptocurrencies may change.
Benefits of cryptocurrency in e-commerce
Using cryptocurrency for payments gives e-commerce companies a number of advantages over competitors:
Enhanced global reach
E-commerce sites can reach a wider audience worldwide with cryptocurrencies. Conventional payment options are not always accessible everywhere and may have regional restrictions. Companies that want to do business cross-border Businesses often choose to use cryptocurrencies due to their ease of use and lack of global regulations.
Lower costs
Businesses can avoid the high fees associated with using credit cards by accepting cryptocurrencies. Customers and businesses can save money due to the generally lower costs associated with digital asset transactions, which would lower the price of goods and services.
Greater safety
Transactions using cryptocurrencies are very secure because they are decentralized. Because a transaction can hardly be undone after completion, the risk of fraud is significantly reduced. Adopting blockchain technology provides an extra layer of protection against chargebacks and fraudulent actions, protecting sellers and customers in the online marketplace.
Cryptocurrency applications in e-commerce
Cryptocurrency enables a wide range of e-commerce applications:
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Loyalty Programs: The innovative and secure benefits that customers can now enjoy as a result of blockchain technology are increasing the appeal of loyalty programs. Benefits like loyalty tokens are guaranteed fair and secure thanks to the immutability of blockchain technology, which increases engagement and trust.
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Web3.0 and Metaverse: With its immersive purchasing experience, cryptocurrency is an important part of both Web 3.0 and the metaverse. It increases user engagement by facilitating transactions for virtual money and collectibles.
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Supply chain transparency: The integrity of the supply chain and production of products can be verified transparently by using blockchain for tracking. This highlights a brand’s commitment to integrity in the fight against counterfeit goods and unscrupulous business practices.
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Specialized Marketplaces: With the rise of virtual assets, specialized peer-to-peer network marketplaces have emerged. These platforms provide new opportunities for sellers to reach a larger audience and increase their market presence by offering more secure transactions and lower operating costs.
Final comments
Companies that accept crypto as a means of payment have a unique opportunity to gain big from this technology and other innovations in the industry. In addition to the aforementioned benefits, using cryptocurrency for payments has enormous potential to grow the e-commerce sector.
Image source: Shutterstock
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