Thanks to the surge in eCommerce trade in the last decade, there’s a steady demand for financial technology. The technology is also known as Fintech and secures payment with less risk. Online wallets that can be used for paying with digital currency is an excellent example. These wallets make life easier for both consumers and online businesses. You can process payment in a matter of seconds.
You’ve undoubtedly heard the buzz around digital currency in the past decade. Since both eCommerce and digital currency both belong to the online realm, they fare exceptionally well together. The demand for safe payments has been one of the consumers’ most significant concerns.
Let’s have a closer look at seven ways digital currency can fare well in eCommerce trade.
1. Secure checkout and payment
Credit card frauds are on the rise, and both merchants and consumers alike are worried about making credit card payments online. Vendors are especially concerned about accepting international credit card transactions. Digital currency eliminates this threat. The payments are not reversible once completed.
In other words, vendors are protected against chargebacks. A chargeback occurs when the customer contacts their bank to cancel the payment days or weeks later. The system is meant to offer protection against fraud but is increasingly used to trick online businesses. The client received the goods or products, but you must pay back the charges.
According to IBM, payment fraud and identity thefts cost the consumers up to $16 billion per year. Only 16% of the banks that participated in IBMs poll stated that they could catch fraud attempts as they were happening. Blockchain helps secure your digital identity and removes the threat of it being tampered with online.
2. Easier to shop from your mobile
Digital currencies are simple for the consumer to use, and there are two ways you can finish a purchase: a digital wallet or a third-party payment processor. Payment processors work similarly as payment processors for credit cards, whereas you download digital wallets onto your device.
Digital wallets make life especially easy for your consumers. You fill up your wallet with digital money, and you are ready to go. The process of completing your payments should then only take a few seconds.
3. Can be used internationally without delay
Since digital currency isn’t placed in a physical location, it can be transferred anywhere in the world and across borders without delays or potential problems associated with international transfers. You don’t have to wait many days for the payment to go through, as digital currency moves across borders within minutes.
You get instant access to the money, which can be especially handy for new businesses wanting a swift cash flow. The funds can be re-invested quickly. There’s no need to use a bank and wait for the payments to process, as you’ve got access to your funds online in a heartbeat.
4. Greater freedom for merchants
There are many things online merchants need to be successful. Examples include finding a reputable Link Building Agency to boost SEO and choosing services that ensure safe payment processes. Finding solutions that are easy to use, while giving the maximum amount of freedom is crucial for many new businesses.
Online currencies are perfect in that respect. You can easily cut out middlemen such as wire transfer services, and digital money is not limited in the same way as traditional currency. The consumers get greater freedom, too, since you can offer a wide range of payment methods at checkout. You’ve effectively eliminated the need to enter credit card numbers.
5. No credit card processing fee
One of the greatest advantages of using digital currency for eCommerce is undoubtedly no processing fees. Credit card fees start from around 2-3% or higher for merchants. The total amount adds up quickly to quite a chunk of money, which is especially problematic for new and small businesses.
Digital currency can be transferred anywhere for a low fee, depending on whether you use a digital wallet or a third-party payment processor.
6. No fees for wire transfer
Many merchants depend on wire transfer for international payments and work with overseas suppliers. International wire transaction fees apply when they send in orders to stock up their inventory. These fees can sometimes be up to $25-40.
When you add up the total amount you spend on wire transfer per year, the amount can be quite high. You can avoid these fees by opting out of wire transfer altogether and use digital currency instead. The costs of transferring should be significantly lower.
7. Reach a broader market
You can reach an even bigger market by introducing a way to pay with digital money to your online store. Also, you ensure that digital-savvy consumers can use their funds in your shop. You get to attract worldwide ECommerce clients who are eager to transform the online world by making digital currencies a preferred payment method.
There are not that many online shops that use digital currency yet, so there is a vast potential of attracting these customers now and being a leader in your field. Please keep in mind that there are big differences between the types of coins, and we recommend that you do your research diligently.
The future of digital currency in eCommerce
There are some drawbacks. The value of a digital currency can vary wildly, and its future is still insecure. The consumer at large has yet to embrace this payment method. However, developments and innovations are happening rapidly.
Digital currency is a relatively new form of money and is not widely accepted yet. However, it may even have a more prominent place in the world of eCommerce in the future. However, we have seven excellent reasons for eCommerce to embrace this new form of currency already today.
We recommend keeping it on your radar and start thinking about the ways it can boost your business and customer experience. Whether you decide to include digital currency or not, having sound knowledge of the innovations and developments is a great advantage for your eCommerce business.