Should websites use crypto payments in 2020? Let’s assess the latest facts about the ecommerce payments landscape before drawing conclusion:
Now that technology is changing fast and digital wallets and payment systems are constantly stepping up to the challenge, it is worth it to consider the trends in AI and crypto. The conclusions are glaringly obvious: the right trends are converging for crypto to go mainstream. Add to this, the fact that the fat cats of this industry, for example Paypal, made rapid changes that affect retailers on issues such as refunds, for example now charging vendors for refunds. It goes without saying that an ecommerce business, ought to re-evaluate their payments strategy frequently: at least annually in this dynamic environment.
Now one of the most prominent payment methods in recent years, has been cryptocurrency. In fact, recently we also discussed how your SME can quickly accept crypto. After considering all the pros and cons of crypto as an acceptable method, here are 5 reasons why sites should seriously consider using this as an option:
Woocommerce / WordPress sites can now accept it:
The majority of businesses run on WordPress – and Woocommerce is the most popular cart solution. Now, developers released a range of plugins that support cryptocurrency payments on Woocommerce shopping carts. This is a game-changer for SME’s and something to make you think: what if we lose out on this functionality added by competitors?
Bitcon and other crypto savers want to spend their money quickly:
Remember all those Paypal vendors who did not have a jurisdiction and wanted to spend money out of their Paypal wallets? Well, today there are thousands of people sitting on Bitcoin: those who invested in it – and those who received payment in Bitcon (and other currencies). They WANT to spend it and will often perform a Google search for specific products and “pay with bitcoin”. If your site can help them – it increases the chances of doing business with a rather affluent segment of the market. This also means more repeat business as this sector will be loyal, often happy to pay a premium.
Waiting for money to clear means that ecommerce vendors and service providers always need more operating capital. Cryptocurrency payments changed that because it is considered an instant payment that clears immediately.
Exchange rates are costly: just look at how much Paypal charges when you transfer money from Europe to the US! Well, crypto does not need to involve conversion rates and is practically borderless. Off course you should consider and understand crypto regulations in various parts of the world.
No more chargebacks!
Numerous times, vendors have been harmed when buyers initiated chargebacks. This is not to say that buyers were not protected against bad vendors. However from a sellers perspective, let’s face it: losing out when someone claims back money on a service which is intangible, it can cause hardship. So you may not know this yet: but with cryptocurrency, there can be no chargebacks at this point in time: the transactions cannot be reversed by a 3rd party. In fact – there is no third party. If you play online card games for example, all players are better protected with cryptocurrency, than let’s say with Skrill and Paypal.
Final scoop: To accept cryptocurrency or not?
Essentially, if we consider the issues associated with chargebacks, online reputation, the growing segment of wealthy individuals who sit on cryptocurrency they want to spend and the numerous challenges created by Paypal these days, it is fair to say that there are plenty of reasons why a site should accept crypto. Ultimately it is up to each vendor to ensure they comply with local regulations and to chart forward the best strategy. Diversification in payment methods often proved to open up new segments of clients: take a tip from those who are benefiting quietly and don’t let them outsmart you by having rigid payment policies.