Advantages of Cryptocurrency and Blockchain for e-Commerce
One exciting advantage of cryptocurrency for e-commerce is that simply making Crypto a payment option on your website benefits you. How so? The more diverse options your business offers, the more appeal you'll have. Have you ever tried to pay for a service or item but stopped because your preferred payment option isn't available in the vendor's country? With cryptocurrency, there are no borders as no government controls them. So, you have a payment option that's available 24/7, not border-restricted, and that's very convenient for many people. Sound like a good idea?
The following are other ways that adopting cryptocurrency and Blockchain will help your e-commerce:
Benefits of Cryptocurrency and Blockchain for E-commerce
We’ve all been there (most of us, at least); approve a transaction today and wait for several days before the payment finally goes through. Traditional payment methods can be slow, especially if they’re across borders. However, cryptocurrency transactions are instantaneous. They can help you cut the time it takes to get transactions approved by more than half and help you better satisfy your customers’ demand for ASAP shipping and delivery.
Traditional payment methods involving third parties almost always include a service fee, usually a percentage of the total transaction cost. Conventional payment methods aren't always convenient for your customers, especially if they buy on a budget. Extra charges may scare them away. What if you can offer them a more economical payment option? Can you see how much that'll benefit your business? With cryptocurrency as a payment option, your customers will pay much less to shop with you – and you can expect your patronage to increase as a result.
Blockchain technology has many factors that make it impenetrable to a hacker. First, it utilises a very advanced type of encryption, one that’s very difficult to alter or duplicate. Second, the technology distributes information in a peer-to-peer (P2P) network, i.e., the information is not contained on a single computer at any time but on every computer making up the network, usually numbering into thousands. Before an attacker can alter the information, they’d have to make changes to each node of the information on each computer in the network. All of these make your data and transactions very hard to tamper with and effectively reduces your risk of cyber-attacks.
Blockchain provides accurate historical data or records of all transactions that have taken place within a network. This capability comes in handy when things like fact-checking come to play. For instance, if you purchase food from a store claiming to sell 100% organic foodstuff or make food with 100% organic ingredients, you can get to the root of the claim yourself and maybe win yourself a lawsuit in the process. (P.S. We are firmly against suing companies to earn money. Damages can be pretty daunting to pay!). But seriously, Blockchain allows you to trace the origin of the foodstuff or ingredients from the farmer who sold it to the restaurant or store, even if you bought it through a wholesaler.
Providing your customers with the satisfaction of using a convenient payment method to make an instant purchase is exciting. Payment with minimal cost and a shorter delivery period will increase customer satisfaction and make it more likely that they'll patronise you or recommend your business to a friend.
So, now you know the benefits of cryptocurrency for e-commerce are numerous and too good to pass up on. But you're probably wondering why more people haven't joined the "crypto" bandwagon considering these immense benefits. Let's discuss two significant reasons why.
Problems Facing Implementation of Cryptocurrency for e-Commerce
Price volatility is a giant axe many have to grind with utilising cryptocurrency for e-commerce. The value of many cryptocurrencies rises and falls very often, meaning one may end up exchanging them at a lower rate than they obtained them. However, with the advent of Stablecoins, this doesn't have to be an issue. Stablecoins are those cryptocurrencies that have their values tethered to a non-digital (fiat) currency. Therefore, they have little-to-no volatility, making them safer to address.
There are thousands of cryptocurrencies in circulation worldwide today, and of course, we expect more. So, deciding which cryptocurrencies to accept from customers can be overwhelming, leading many to give up on the idea altogether. One thing they don't realise, however, is that many who transact with lesser-known alternative cryptocurrencies (altcoins) can exchange them for the more popular ones such as Bitcoin, Ethereum, Litecoin, etc.
To cater for these disadvantages, B4biz initiated the development of a stable currency called AUDZ - a stablecoin whose value is fixed to the Australian Dollar. This implies that 1 AUDZ will always be equal to 1 AUD. The development of AUDZ obviously solves the problem of price volatility. And by creating a platform where buyers and sellers can easily transact without overwhelming choices, the implementation of cryptocurrency into e-commerce is much easier.
So What’s The Point?
If you’re still lingering on the fence about accepting cryptocurrencies on your e-commerce and utilising blockchain technology to manage your transactions, let us give you the final push. At B4biz, we aim to make blockchain technology more consumable by creating a digital ecosystem where digital currencies can thrive. We integrate businesses with the most innovative technology of the 21st century. The global blockchain market will hit $17 trillion by 2025. Would you like a share of this lump sum? We’re here to help – because at B4biz, we’re making blockchain more consumable.