What can the prospect of crypto payments mean for e‑commerce sector

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With e‑commerce con­sid­ered impor­tant for glob­al busi­ness land­scape, experts seem to explore how cryp­tos’ inte­gra­tion can ensure its growth. From an organ­i­sa­tion­al purview, cryp­tos can help sup­port e‑com­merce-based cross-bor­der payments.

Insights from Coin­Gate, a cryp­to pay­ment proces­sor, stat­ed that 2022 wit­nessed more than 60% cryp­to-based e‑commerce trans­ac­tions. The platform’s research also showed that Coin­Gate-ori­ent­ed mer­chants secured 927,294 cryp­to pay­ments with Bit­coin clock­ing 48% of all trans­ac­tions, for 2022. “I believe the impor­tance of cryp­to pay­ments in e‑commerce lies in its abil­i­ty to pro­vide a decen­tralised pay­ment method. In 2023, cryp­to-based e‑commerce pay­ments can make a dif­fer­ence by offer­ing con­ve­nience and flex­i­bil­i­ty to cus­tomers,” Punit Agar­w­al, founder, KoinX, a cryp­tocur­ren­cy tax­a­tion plat­form, told FE Blockchain.

Prospects around cryp­to-based e‑commerce pay­ments sug­gest that mar­ket­places can gain a com­pet­i­tive advan­tage by reach­ing out to cus­tomers, irre­spec­tive of geo­graph­i­cal bound­aries. Accord­ing to ShipHero, an e‑commerce plat­form, cryp­to-based e‑commerce stores can tap into a mar­ket of tech-savvy clients, lim­it trans­ac­tion fees to 1.5%, and decrease frauds through dis­trib­uted ledger tech­nol­o­gy (DLT). How­ev­er, cryp­tos’ intro­duc­tion in e‑commerce can expose buy­ers to high price volatil­i­ty and reg­u­la­to­ry concerns. 

“In 2023, poten­tial of cryp­tocur­ren­cy-based e‑commerce pay­ments to rev­o­lu­tionise the dig­i­tal pay­ment indus­try is high. They can offer a secure and effi­cient way to buy and sell goods and ser­vices glob­al­ly. The two pri­ma­ry dri­vers that can boost adop­tion of cryp­to-based e‑commerce pay­ments in the future are reg­u­la­tions and accep­tance,” Edul Patel, co-founder and CEO, Mudrex, a cryp­to-invest­ing plat­form, highlighted.

Report­ed­ly, com­pa­nies such as WooCom­merce, Open Bazaar, PrestaShop, among oth­ers, have added cryp­to-based pay­ment mech­a­nisms for cus­tomers. For exam­ple, Open Bazaar per­mits busi­ness-to-busi­ness (B2B) and busi­ness-to-con­sumer (B2C) forms of e‑commerce amongst com­pa­nies and peo­ple from a cryp­to background.

More­over, future pre­dic­tions indi­cate that e‑commerce can help dri­ve main­stream cryp­tocur­ren­cies’ adop­tion and enhance devel­op­ment of new pay­ment tech­nolo­gies. As stat­ed by Man­ches­ter Dig­i­tal, an inde­pen­dent trade asso­ci­a­tion, num­ber of retail­ers around cryp­to pay­ments is see­ing an upward trend, due to pres­ence of third-par­ty pay­ment pro­cess­ing sys­tems such as Bit­pay and Cryptopay.

“The future of cryp­tocur­ren­cy-based e‑commerce pay­ments looks promis­ing, with experts pre­dict­ing growth in the com­ing years. How­ev­er, there are issues that need to be addressed such as cryp­tocur­ren­cy volatil­i­ty and lack of wide­spread adop­tion. It is like­ly that cryp­to pay­ments will become an impor­tant part of e‑commerce trans­ac­tions,” Sathvik Vish­wanath, co-founder and CEO, Uno­coin, a cryp­tocur­ren­cy exchange, concluded.

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