The Future of Online Payments – Cryptocurrencies in the e-Commerce Industry

This discussion is based on factual details based on various studies conducted by different agencies. A recent study conducted by the Cambridge Center for Alternative finance put light on a few very interesting factors. There are close to 5.8 million people (rough estimates between 2.9 million and 5.8 million people) actively using cryptocurrencies on today’s date. There is an equally large number of crypto wallet users across the world. The numbers are somewhere between 5.8 to 11.5 million crypto wallets.

Out of the total number of wallets, there would be 81% of wallet providers based out of North America and Europe. But the next figure would be very astonishing for the readers. Only 61% of the total wallet users originate from the North American and European Region. The rest originate from the Asian region. Asia is becoming one of the greatest hubs for crypto wallet users in recent times.

Despite several restrictions, bans and regulations on them; the popularity of cryptocurrencies remains undiminished. Bitcoin is the most dominant player in the cryptocurrency market place. The other dominant players in the market are Litecoin, Zcash, and Ethereum.

The connection of cryptocurrencies with the e-commerce industry

The cryptocurrencies and the eCommerce industry have a strong correlation. Although, many of the readers might not be able to correlate it but still, it is an established fact that there would be several takers from the crypto industry. The eCommerce industry is slowly embracing the cryptocurrency trend with some of the major e-commerce portals accepting crypto assets. Some major Romanian e-commerce stores like F64, PC Garage, and Altshop are Romanian e-commerce stores that accept payments in the form of cryptocurrencies.

Some critics might feel that this is just a trending wave that will slowly diminish. However, the trend is great news for the crypto industry on the whole. The trend is ought to encourage a more open approach towards cryptocurrencies.

Why cryptocurrency is an advantage for the e-commerce industry

The acceptance of cryptocurrencies is a vital aspect and the credit goes to the many virtues of cryptocurrencies. The virtues of cryptocurrency are:

1. Lower fees – Transaction fees are comparatively lower with bitcoin than with credit cards, and when crypto money is not transacted, it also removes the need for bank charges.
2. Fraud reduction – A payment made through bitcoin cannot be reversed after it has occurred. This is not similar to credit card payments, which can allow reversals through chargebacks, a feature that is generally utilized by fraudsters.
3. Instant payments – Long-distance Credit card payments can take days or even weeks to come through. On the other hand, cryptocurrency ensures instant transfers.
4. No barriers – Cryptocurrency ensures that international trade is more accessible by removing traditional boundaries and restrictions involved in trade, ultimately making it simpler to accept payments coming in the form of different currencies.
5. Attract new customers – As bitcoin is still a fairly new method of payment, offering it as an option for your customers could help you bring in new business.
6. Get ahead of your competition – By being an early adopter of cryptocurrency, you can gain a competitive advantage over your competition.

The acceptance of cryptocurrencies within the ecosystem of the e-commerce businesses will bring about a paradigm shift to the entire digital commerce business. Today, we are only looking at the top of the iceberg with a limited preference towards cryptocurrencies. The trend will gradually change with cryptocurrency adoption becoming more abundant than ever before!