Cryptocurrency, or crypto, is quickly becoming a part of mainstream e-commerce and its popularity has grown significantly since its conception in 2009. If you haven’t been paying attention to the rise of cryptocurrency, no worries! Simply put, it is a digital currency that uses encryption to manage secure transactions. As a decentralized system, crypto does not require a bank or government to regulate the transactions and users can spend money anonymously. Cryptocurrency must be stored in a digital wallet, which can be accessed by either secure software or online exchanges, and purchases may be made by transferring virtual funds between a virtual wallet and the vendor.
Crypto and E-Commerce
As alternative payments continue to become options for consumers, cryptocurrency is an avenue many are turning to. Digital wallets and instant payment systems are all changing the way people look at e-commerce. With more than 18,000 companies, including many large e-commerce marketplaces, choosing to accept cryptocurrency as payment for their products or services, what are the benefits for online sellers?
Increased Security and Trust
With crypto, retailers and consumers can have greater confidence in each other. Through the use of encrypted wallet addresses, cryptocurrency can be used anonymously, enabling your customers to make purchases without revealing their personal information and putting them in control of their privacy.
As mentioned before, the cash-like transaction between buyer and seller is not regulated by banks or governments, making it especially popular in eastern international markets where many consumers are not enrolled in a traditional banking system. Those businesses that accept cryptocurrency are able to grow their sales volumes in these markets, whereas those that do not accept it may miss the chance to meet consumer demand.
Reduced Transaction Fees
Since cryptocurrency payments are conducted directly between the buyer and seller, most processing fees associated with cryptocurrency payments are nearly eliminated. With most sitting around 1%, this is a far cry from the transaction fees charged by credit card companies, which typically range between 3 to 5%. Therefore, the add-ons costs that many e-commerce companies include in their pricing to cover these fees can instead contribute to their bottom lines. Please note, however, that there is a fee associated with converting cryptocurrencies to national currencies, including the US dollar.
Marketplaces and Selling Platforms that Accept Crypto
Technology is at the forefront of change. DesktopShipper works hard to invest in integrations that help e-commerce sellers foster technology relationships for their business and customers. Cryptocurrencies are currently accepted with these marketplace integrations:
#ShipTip: For a full list of our integration partners, click here.
The Metaverse as a whole has begun to blend the physical and digital world of commerce. It should be no surprise that cryptocurrency, the main payment source built for the Metaverse, has taken the e-commerce world by storm. Yet, even with big-name brands currently accepting crypto, it still has a long way to go before it becomes a universal form of payment. Do you think you'll make the jump?