Cryptocurrencies are booming in popularity and consumers are more tech savvy than ever, so now is the best time for e-commerce and online stores to start accepting payments in crypto.
E-Commerce is booming
E-commerce sales in the US are booming, seeing double digit growth of 13.3% year-over-year (YoY) from Q2 2018 to Q2 2019. Estimates place retail e-commerce sales in the US at $146.20 billion as of the time of writing, and this accounts for 10.7% of total retail sales across the country.
More and more consumers are getting used to doing their shopping online. As consumers get more comfortable, they are more likely to purchase higher cost items more frequently over the internet.
Digital Savvy Consumers
Consumers who already do the majority of their shopping online are not only familiar with making online purchases, but they prefer it to brick and mortar shops. Many also hold cryptocurrencies, and are always looking for new environments to use them.
Many companies have already integrated crypto payment systems for consumers because of the rise in demand. By doing so, they have attracted even more consumers who otherwise would have gone elsewhere.
More and More Online Marketplaces are Accepting Crypto
The list of traditional companies accepting crypto payments continues to grow, from Expedia, to Twitch, Overstock, WordPress, and Shopify. Some marketplaces like Purse even focus solely on accepting crypto payments and appeals to crypto communities who are actively seeking merchants willing to accept their digital currencies.
The future of e-commerce could lie with these early adopters and developers of crypto payment systems. As well, the integration of crypto payment systems could very well put businesses ahead of the curve. Consequently, it will also bring more money into the e-commerce marketplace.
Consumers Want to Spend Their Crypto
All signs show that the trend towards crypto e-commerce is accelerating. Interest in decentralized payment networks is on the rise. There are now even cryptocurrency-enabled advertising platforms. It is evident that more online marketplaces are incorporating crypto payments into their business models.
These marketplaces appeal to digital savvy consumers looking to spend their cryptocurrency. The popularity of bitcoin and major altcoins has boomed in recent years in large part because of innovations such as Bitcoin ATMs, crypto payment cards, payment portals various online stores. All of these new ways to use crypto have led to even more consumers entering this area.
Benefits of Accepting Crypto Payments
The benefits to accepting cryptocurrency in an online marketplace are many.
Access a broader market.
There are entire online communities devoted to crypto technology, and word-of-mouth spreads quickly in these circles. Give these tech-savvy communities the option to spend their crypto and appeal to consumers on a global scale.
Make quicker transactions.
Blockchain enables nearly instant, transactions, as opposed to credit card payments which sometimes take several days to process. Faster transactions not only provide businesses with immediate access to their cash flow but also streamline the process.
Reduce transaction fees.
With most cryptocurrencies, there are very low fees associated with each transaction. This can vary depending on the type of crypto used in the transaction. Also, on the receiving wallet and whether or not it is personally controlled or operated by a third-party provider. Nonetheless, these fees will often be much less, comparatively, to other payment services (credit cards or PayPal).
Eliminate intermediaries for extra security.
Any transaction made on the blockchain is impossible to reverse. There are no intermediaries between the marketplace and the consumer, and payment is made directly from one to the other. This means that e-commerce retailers are protected more against fraud, as there is no middle-person, like a bank, who can reverse a payment without the consent of the retailer.
Connected through Global Crypto Payments
For these reasons, many businesses are turning to accepting digital currency payments. Sidekick, for example, is developing a platform that integrates payments, messaging, and its own native marketplace.
By allowing cryptocurrency payments on local POS devices and in global payments, Sidekick is addressing this emerging need for a messaging application that can also be used for transactions in crypto and online purchases. Do not let this opportunity pass your business by. This is, undoubtedly, the best time for e-commerce stores to start accepting crypto payments!