Advantages Cryptocurrencies Bring to E-commerce Industry
As cryptocurrencies become more and more popular, and accessible, major e-commerce platforms start looking for uses in the new technology. Currently there are thousands of small and large e-retailers which officially accept list of known and reliable cryptocurrencies as a payment method.
Overstock.com was one of the first large online retailers which started accepting Bitcoins. This was back in January 2014 after what more large names in the industry including i.e. Expedia, Shopify, Dish Network, QuickBooks Labs, Reeds Jewelers, CheapAir etc. joined the major market trend. Some of the most popular and common cryptocurrencies that are accepted by these platforms expect Bitcoin also include Ethereum, Litecoin, Dash, Monero, Bitcoin Cash etc.
The number of e-commerce platforms, which start accepting cryptocurrencies keeps growing with almost each passing day, and hence it is obvious that this payment method has great deal of advantages and opportunities for both buyers and online retailers over fiat currencies.
Here are three key groups of advantages cryptocurrencies are expected to keep bringing to e-commerce industry:
While using payment methods in cryptocurrencies, both buyers and online retailers have the opportunity to benefit from extremely low transactions fees. Depending on the used electronic wallet for cryptocurrencies or payment provider, the transaction fees here can be worth even less than 1%. While compared with the same costs in case of traditional banking, making transactions in cryptocurrencies show clear advantages and hence more benefits for the users.
Due to the used blockchain technology for the cryptocurrencies, it becomes possible to provide extremely short periods of time to make transactions in these tokens. While some transactions in fiat currencies may take up to several business days to be proceeded, the technology of cryptocurrencies allows reducing this time to up to several seconds.
Payments which are made in cryptocurrencies are irreversible and secure due to the main feature of recording all the transactions on the blockchain. This means all the funds that are moved via this platform are locked in a public key cryptography system. This eliminates the option of fraud in the system. In addition, all the payments are made in a decentralized blockchain technology that provides a level on encryption which is virtually impossible to break.
There is a measurable potential in the new technologies and decentralised payment methods having important influence on the e-commerce industry, and hence more online retailers invest in exploring the uses of those while actively integrating them as official payment methods.