Crypto Payments: The Transformative Role of Digital Currencies in E-commerce for 2024

Cryptocurrency has solidified its status as more than just a passing trend; it's becoming integral in e-commerce. Nowadays, everything from buying groceries to booking high-end hotels can now be done using digital currencies.

This shift has prompted numerous online retailers to rethink their strategies. What drives retailers to adopt cryptocurrency, and what advantages does it offer?

Why Do Online Retailers Take Crypto?

In recent years, various cryptocurrencies have demonstrated their capability to serve as viable alternatives—or even complements—to the conventional financial framework. They bring numerous advantages to merchants, including:

Hassle-free Money

As public faith in banking institutions wavers, more individuals are leaning toward cryptocurrencies for transactions. Losing faith in centralized banks, many consumers are choosing to diversify their financial options. Offering crypto payment methods allows instant access to incoming revenue, tapping into a significant segment of the online shopping demographic. Hence, it makes perfect sense for businesses to explore crypto payment options.

Lower Fees

Traditional payment processors often impose hefty fees for handling transactions, with online retailers facing charges of up to 4% per transaction. In contrast, cryptocurrencies eliminate intermediaries, significantly reducing costs. This is particularly beneficial for smaller online ventures trying to remain afloat.

A Wider Net

Recent studies indicate that a significant portion of the population lacks access to basic financial services, often due to political or economic turmoil. Moreover, many individuals express distrust towards centralized finance. Cryptocurrency acts as a global currency free from political constraints, allowing anyone with internet access to engage in the worldwide financial landscape. 2 billion unbanked people in the world Sahar Salama, the CEO and Founder of TPAY MOBILE, emphasizes the need for a 'cashless society' where digital currencies and services must be 'accessible and appealing to everyone.'

Beyond just widening access to financial resources, businesses can leverage cryptocurrencies to broaden their market reach and introduce their offerings to a larger audience. A larger customer base translates into greater sales opportunities.

Leading E-commerce Platforms Accepting Crypto Payments

These arguments, along with several others, have convinced significant online players to adopt cryptocurrency as a payment option. Notable examples include:

When Bitcoin first made headlines in 2014, Overstock emerged early on as a pioneer in e-commerce to accept it. The retailer offers a wide range of products—gadgets, clothing, and furniture—all purchasable with Bitcoin. This initial move positioned Overstock as a quintessential destination for shoppers using cryptocurrencies.

Overstock

By collaborating with ShapeShift, Overstock has since expanded its acceptance to a variety of cryptocurrencies, including Ethereum, Ripple, and Litecoin. Customers can effortlessly select crypto payment options during checkout, paying directly from their digital wallets.

Renowned for its friendly membership and contributor systems, Twitch has become a hub for content creators. A significant aspect of Twitch's promotion of cryptocurrency is its feature that allows users to tip their favorite streamers in crypto. This functionality, facilitated by platforms like PayPal, requires streamers to opt-in ahead of time.

Twitch

Viewers can send tips using over 50 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Twitch has also enhanced its tipping system through a partnership with BitPay, enabling users to contribute to their 'bits' using cryptocurrency.

This streaming giant has shown great enthusiasm for adopting cryptocurrencies, even running promotional ads previously to boost acceptance. For example, in 2020, Twitch started offering a 10% discount for channel subscriptions paid in cryptocurrency. Although such promotions aren't currently available, the platform's support for crypto suggests future incentives may follow.

AMC provides an exceptional movie-watching experience featuring cutting-edge technology across its extensive network of theaters nationwide.

AMC Theaters

Through its alliance with PayPal, AMC now accepts cryptocurrency as a form of payment. This initiative enhanced AMC's visibility and appeal, attracting crypto enthusiasts to its services. The same can be said for the partnership with BitPay, enabling users to secure their seats with minimal fees and ease.

The AMC mobile application is also crypto-friendly, inviting users to purchase tickets using various coins, such as Bitcoin, Dogecoin, and Shiba Inu. This initiative has proven successful, with AMC's CEO stating that crypto payments constituted roughly one-third of online transactions by mid-2022.

NewEgg, a prominent online electronics retailer, now facilitates cryptocurrency transactions for its tech products, marking a significant step forward in the industry's acceptance of digital currencies.

Newegg

In addition to Bitcoin, customers can now make purchases on Newegg using Ethereum, Dogecoin, Litecoin, and numerous other cryptocurrencies, all thanks to their collaboration with BitPay—a trend many retailers are following. We eagerly await Newegg's allowance of BitPay payments for subscription services and collection orders.

However, using Bitcoin is a breeze; simply select 'Pay with Bitcoin' and send the designated amount to the displayed wallet address on the page.

Differentiating itself from other booking platforms like Booking.com, Travala has established a strong footing across over 200 countries, incorporating cryptocurrency as a payment method for hotel bookings.

Travala

Travala supports more than 100 cryptocurrencies, encompassing Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, thanks to its partnerships with Binance Pay and various other exchanges to capture a diverse customer demographic.

Another enticing feature offered by Travala is its 'Smart Program.' Customers who acquire and retain AVA tokens ascend through the program tiers, unlocking greater savings and rewards as they progress.

With AI-enhanced developments on the horizon, cryptocurrency presents exceptional prospects for both e-commerce platforms and consumers alike. However, lingering challenges have held many platforms back from fully adopting crypto as a payment option.

Remaining Hurdles

One significant hurdle is the volatility of cryptocurrency prices. Cryptos can experience swift fluctuations, posing risks for businesses, as they could accept payment in a cryptocurrency that depreciates before conversion to cash. Thus, companies must devise strategies to swiftly exchange crypto for fiat, mitigating risks and preventing losses.

Some of these hurdles are:

Asset Volatility

While there has been considerable momentum for crypto's presence in e-commerce, numerous smaller and larger entities still require more compelling evidence of a sufficiently vast consumer base to warrant the acceptance of crypto payments.

Not Enough Traction

Ironically, the leading cryptocurrencies in e-commerce—Bitcoin and Ethereum—are also among the slowest in terms of transaction speed. Additionally, as the number of transaction orders surges, scalability challenges arise, resulting in delays and additional fees.

Slow & Limited

In summary, by integrating cryptocurrencies into their operations, e-commerce platforms and online retailers stand to benefit significantly, but this evolution will necessitate time, enhanced public understanding, and meaningful regulatory shifts.

Please be advised that the information provided on this page is for informational purposes only and should not be construed as legal, tax, investment, financial, or any other type of advice. It's crucial to only invest what you can afford to lose, and seek independent financial advice if you have any uncertainty. For additional insights, please refer to the stipulations and guidance provided by the issuer or promoter. MetaversePost is dedicated to delivering precise, impartial reporting, although market fluctuations may occur without prior notice.