Want to know if Bitcoin could benefit the e-commerce industry? If so, here’s how e-commerce stores can benefit from Bitcoin.
Bitcoin is changing consumer trends and e-commerce. Perhaps the most significant change this cryptocurrency has brought to the world of e-commerce is facilitating safe, fast and cashless transactions. Since Covid-19 hit the world, many companies have encouraged contactless payments. And this is good news for Bitcoin and the e-commerce industry, as they rely heavily on digital payments.
While the e-commerce sector has several digital payment options, Bitcoin presents a safer, faster and more convenient method. See how Bitcoin benefits e-commerce.
Accepting bitcoin payments at an e-commerce store gives a business broader access to tech-savvy consumers. Thus, your store will be able to receive more consumers who want to pay with this cryptocurrency. Some people may buy from your e-commerce store just because you accept cryptocurrency payments. Debit cards, credit cards and electronic payment processors have been the only means for e-commerce stores to accept payments from customers.
While these methods have been effective, they limit online merchants from dealing with customers with bank accounts. And this has limited the expansion of some e-commerce stores, negatively affecting their profits. As Bitcoin is decentralized and does not require intermediaries, it eliminates these obstacles.
Anyone can transact with an e-commerce store that accepts Bitcoin payments, as long as they have an internet-connected device. Platforms like BitIQ allow you to register and buy bitcoins with fiat money. They can then transact in Bitcoins all over the world. Therefore, integrating Bitcoin into your current payment system can bring in more customers from the cryptocurrency user pool.
Conventional payment methods rely on intermediaries to process international payments. This leads to security risks, including data theft and fraud, as most intermediaries disclose customer information to third parties.
Bitcoin transactions do not involve intermediaries, which eliminates these risks. Bitcoin uses blockchain technology to validate and verify transactions without third-party intervention. Also, customers and merchants cannot modify validated bitcoin transactions. Finally, Bitcoin allows users to conduct anonymous transactions, which increases privacy protection.
Customers and merchants can track Bitcoin transaction history using the public ledger in real time. Thus, Bitcoin facilitates quick and straightforward solutions to payment disputes.
Effective supply chain management
Some e-commerce stores have supply chains that span multiple geographic boundaries. With conventional payment methods, managing these supply chains isn’t always easy. It’s also an expensive business.
Bitcoin’s underlying technology provides a secure and less restrictive platform to manage these supply chains. For example, an e-commerce store can use the underlying Bitcoin technology to streamline payments and orders from suppliers based on their preferences and needs.
E-commerce stores can also integrate additional functions with this technology to alert suppliers when they need specific products. This could take the stress out of daily inventory, thus reducing costs.
Low transaction costs
Reducing transaction costs is perhaps the biggest reason why an e-commerce store should accept Bitcoins. This virtual currency eliminates third parties, thus reducing transaction costs. As a peer-to-peer network, Bitcoin facilitates transactions between the parties involved without an intermediary.
Bitcoin miners charge a small amount to validate transactions. However, these costs are lower than for conventional payment methods. Using Bitcoin can help an e-commerce store reduce operating costs by attracting more international customers who want to pay with this cryptocurrency.
Many people want to use Bitcoin for e-commerce transactions. This is why Bitcoin is increasingly becoming an acceptable payment method for many e-commerce stores. Bitcoin facilitates cheaper, faster and more secure payments for e-commerce stores. It also allows e-commerce stores to attract consumers from emerging markets. Furthermore, Bitcoin’s underlying blockchain technology can provide convenient ways for merchants to manage their cross-border supply chains. Thus, Bitcoin represents a viable innovation for the e-commerce sector.