If you run your business on the Shopify platform and watch how the trend for cryptocurrencies is only growing every day, you should definitely consider integrating with one of the cryptocurrency gateways. Digital wallets are opening the way for more useful and rapid payment options, which are revolutionizing how we do business. Since bitcoin is promptly converted into local currency for retailers when using a payment processor, accepting cryptocurrency as payment may be rather straightforward for them. Even still, the majority of individuals haven’t yet joined in.
By providing additional options at the checkout, accepting cryptocurrency as a payment method may improve the shopping experience for your consumers and increase the size of your client base if you operate an online store. To begin with, let’s figure out what cryptocurrency is and give several reasons to implement this service in your Shopify business.
Cryptocurrency: what is it?
It could be helpful to define cryptocurrencies first. Simply said, cryptocurrency is a type of digital currency that isn’t governed by a bank or a government and instead employs encryption to control how it is used and when it is released.
As the buidlbee.com writes, every transfer that takes place is confirmed by users on a network, and in most cases, those transactions are made on a public record to stop the same user from using the coin more than once. Knowing that each coin is different and that some coins offer greater safety and privacy than others is the key to using cryptocurrencies.
How to apply crypto to eCommerce
As both eCommerce and cryptocurrency serve clients that are technologically savvy, they work well together. You should see cryptocurrency in the same light that you do in your online store. It is an additional option for those looking for a speedier and more convenient way to pay for goods and services. This indicates how well-liked using digital payments online is.
With cryptocurrencies, there is no need to visit a bank, make a cash withdrawal, or even input credit card information prior to making a purchase online. Digital payments are being driven by the same need that has fueled the online retail industry, and if handled properly, this might be a wonderful addition to your current offerings.
Do I need to accept cryptocurrencies as payment?
Shopify began to accept cryptocurrency payments as a form of payment in 2020. This implies that as a Shopify merchant, you may enable one or more cryptocurrency payment processors, such as Coinbase Commerce, Crypto.com, Strike, BitPay, DePay, and OpenNode, in order to accept cryptocurrency payments from your clients.
Accepting cryptocurrencies as a form of payment has several benefits. Here are a few crucial ones:
1. Access to bigger markets
By eliminating extra middlemen like banks and payment organizations, crypto payments enable clients from all over the world to transfer payments quickly and simply. More markets equate to more consumers, and greater consumers equate to more revenue.
2. Better customer experience
In the cutthroat DTC market, you want to give your consumers the greatest possible user experience to encourage repeat visits and boost lifetime value (LTV). Accepting cryptocurrency payments gives your clients more flexibility and improves their experience.
3. Cheaper processing costs
Compared to typical payment processors, cryptocurrencies charge lower processing costs. Higher gross profit results from lower processing costs. What a simple way to save money! A helpful tip is to compute your profit margin utilizing the various processing costs and then compare the resultant margin to determine how much you may save.
4. Faster processing
Unlike traditional payment processors, which might take a few days, crypto payments are fast and sent in real-time. It all comes down to cash flow!
5. No chargebacks
Managing consumer complaints and chargebacks may be time-consuming and cost your company money. Chargebacks are not a thing in the world of cryptocurrency. A transaction may only be reversed by the merchant.
6. Better security
Since cryptocurrencies don’t require third parties to verify transactions, they are more secure. Since every transaction is verified and recorded on the blockchain ledger, it is very difficult for someone to steal your identity.
Accepting cryptocurrency has a lot of advantages, but there is also significant disadvantage. Cryptocurrency values are incredibly erratic and unpredictable. Some online retailers decide it’s not worth the risk.
Conclusion
More online retailers are aiming to embrace bitcoin as a payment method for clients as cryptocurrency payments increase. While there are many advantages over conventional payment methods, it’s vital to remember that there may also be certain hazards and tax ramifications, which can make it more difficult to manage in your books.
