The rise of cryptocurrencies has led to the creation of new opportunities for online transactions, particularly in the eCommerce sector. In recent years, we have seen a significant shift towards the use of crypto payments in eCommerce, and this trend is only set to continue in the future. Bitcoin payments offer various advantages over traditional payment methods, such as faster processing times, lower fees, and enhanced security. As of 2023, it is estimated that global crypto ownership averages at around 4.2%, with over 420 million crypto users worldwide.
Benefits of Crypto Payments in E-commerce
Crypto payments offer several benefits over traditional payment methods.
Decentralized: For anyone following the fintech space can easily vouch for the fact that the future of payments is decentralized. The shift characterized by no centralized authority controlling and monitoring every aspect of a person's financial movement, decentralization gives the control back to the individual and allows for more freedom. Bitcoin is truly decentralized with absolutely no central authority involved in its use and simply runs on a predefined set of rules.
Quick Settlements: Crypto payments can ideally be processed in a matter of minutes, 10 minutes to be exact, making them a far more advanced and quicker way to receive payments. Merchants no longer have to wait for banks to process and confirm transactions before the payment is reflected in their accounts, which can take a minimum of a few days and in some cases even longer if additional processing is needed which most likely would be the case if cross-currency transactions are involved or large sum transactions are taking place.
No Chargebacks: One of the biggest challenges faced by online merchants is chargebacks. Chargebacks occur when a customer disputes a charge and requests a refund from the merchant. With traditional payment methods, chargebacks can be costly and time-consuming for merchants. On the hand, with blockchain, once a transaction is confirmed it cannot be canceled or reversed. This means merchants do not have to worry about shoppers causing fraud.
Low Fees: One of the beauties of blockchain, is that it completely eliminates the need for middlemen during the entire transaction process. This significantly reduces the cost and time of conducting transactions between people from anywhere in the world. Bitcoin transactions typically range between a few cents to a dollar, a significant difference from typical fiat payments which can cost anywhere between 2.5% - 4% for each transaction, not to mention the additional charges you may have to pay if cross-currency transactions are involved.
International Acceptance: In the era of globalization, where the world is more connected than ever, it only makes sense to use a currency that is global at its root. Used by people all over the globe, bitcoin truly transcends borders and epitomizes the future of online payments. By using Bitcoin, merchants can expand their customer base and reach customers who may not be able to use traditional payment methods or prefer to pay with crypto.
Safe and Secure: Blockchain technology is one of the safest methods available in the fintech space today making payment settlements on the blockchain extremely efficient and reliable. Secured using cryptographic algorithms that make it virtually impossible for anyone to steal or counterfeit Bitcoins, it is currently one of the safest methods to conduct transactions. This means that merchants can be assured that their transactions are secure and that their funds are safe from fraud.
So How Can You Accept Bitcoin Payments For Your Online Store?
The good news here is that accepting bitcoin payments online is a relatively easy process, in fact much easier than accepting fiat payments. As bitcoin’s popularity as a payment currency grew in the past years, the market is flooded with products and services to cater to this growing need.
Bitcoin payment gateways, a specialized software designed for savvy online merchants, allows for easy acceptance of bitcoin payments on any eCommerce website. Similar to traditional payment payments, where the customers are taken to a dedicated checkout screen with they enter the payment details [credit card number, billing details, etc.], bitcoin gateways work in a similar fashion but instead are shown a unique bitcoin address and QR code where the payment needs to be made.
As an eCommerce merchant, it is pivotal to choose the right payment gateway for your business and when it comes to choosing a top-notch bitcoin payment plugin there are a few functionalities that you must look for:
- Complete control of the funds that you receive
- No KYC/AML requirements (if you want privacy and anonymity)
- Low Fees
- Easy integration to your website (the less technical — the better)
- Secure and Safeguarded transaction
- Excellent customer support (In-case you run into trouble!)
Despite the decentralized nature of bitcoin, most bitcoin payment gateways tend to control the funds that you receive and make you undergo KYC procedures, thus proper research is essential in choosing the right product for you.
Blockonomics, one of the leading bitcoin payment gateway has made quite a name for its decentralized nature and easy integration, and it pretty much checks all the boxes mentioned above. Online merchants can get started by creating a free account and having a fully functional gateway on their website in a matter of minutes.
One key advantage of Blockonomics is its low transaction fees. Unlike traditional payment processing systems, which can charge high fees for processing payments, Blockonomics charges a flat rate of 1% per transaction with the first 20 transactions free. This makes it an affordable option for businesses and individuals who are looking to accept bitcoin payments without incurring high transaction fees.
Blockonomics also offers a range of integrations and plugins for popular eCommerce platforms, including but not limited to WordPress, EDD, WHMCS, and PrestaShop.
As eCommerce businesses look for ways to improve the customer experience and streamline their operations, it's likely that more and more will turn to cryptocurrency payments as a viable option. With the growing interest in cryptocurrency and blockchain technology, the future of crypto payments in eCommerce looks bright.
Bitcoin payment gateway can be a valuable tool for online merchants looking to improve their payment processes and attract new customers. With low transaction fees, fast transaction times, and secure payments, bitcoin is an attractive option for both merchants and customers alike. By choosing a reputable payment gateway provider and integrating bitcoin into their website, merchants can take advantage of the many benefits of this innovative payment method and stay ahead of the curve in the rapidly evolving eCommerce landscape.
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