Bitcoin is a decentralized cryptocurrency that offers a secure and fast way to send payments. If you want to start accepting Bitcoin on your eCommerce site, simply integrate a BTC payment processor into your online store. Many major eCommerce platforms like Shopify and WooCommerce already have BTC payment processor integrations, so you can implement them immediately.
When choosing a BTC payment processor, consider the following:
- Transaction fees
- Batch payout frequency
- Supported cryptocurrencies
- Supported regions and countries
- Customer Service
Direct Integration Alternatives
If a direct integration isn’t possible, consider alternative options such as the following:
- Payment buttons: Add a payment button to your website; consider using the Coinbase API to create your Bitcoin buttons.
- Custom cryptocurrency payment integration: Create a custom-made Bitcoin API that integrates with your shopping cart. You can find some great resources and developers on sites like Upwork.com.
Benefits of Cryptocurrency in eCommerce
1. Lower transaction fees
Transactions fees are a main advantage of cryptocurrency. Credit card companies and payment apps like Stripe or Square charge transaction fees anywhere from 3-5% on each transaction. Many eCommerce companies build these fees into their online store prices. Cryptocurrency transactions often don’t have fees or are as low as 1%. However, there are cryptocurrency conversion fees when transferring cryptocurrencies to national fiat currencies like USD.
When comparing the two, it’s clear that cryptocurrency offers a lower-cost option for transactions. This can be a major advantage for businesses that rely on online transactions, as well as for individuals who make many small purchases throughout the day. The lower costs associated with cryptocurrency can also help to encourage more spending and commerce, which can have a positive impact on the economy.
2. Reduce Fraud and Chargebacks
Cryptocurrency’s blockchain technology was specifically developed to reduce fraudulent activity. By accepting cryptocurrency, money is exchanged immediately and cannot be rescinded or forged.
This drastically reduces the ability for fraudulent chargebacks or returns. In addition, the decentralized nature of cryptocurrency means that there is no central authority that can be manipulated or taken advantage of. As a result, cryptocurrency offers a much higher degree of security than traditional payment methods.
3. Anonymous Transactions and the Bank-Averse
Cryptocurrency has been praised for its ability to allow for anonymous online transactions. When you purchase with cryptocurrency, your personal information is not attached to the transaction. This allows your clients to purchase items without compromising their personal information and allows you to do business without worrying about any privacy regulations.
In addition, cryptocurrency is not subject to the same fluctuations as traditional currencies, so it can be a more stable way to do business. For these reasons, a cryptocurrency is an appealing option for many businesses and individuals.
Disadvantages of Cryptocurrency in eCommerce
1. Cryptocurrency Price Volatility
Cryptocurrency prices are notoriously volatile, meaning they can fluctuate wildly in value compared to more stable fiat currencies like the US dollar. If the value of crypto drops, you may experience cash flow issues and difficulty in daily operations. For example, let’s say you own a business that accepts Bitcoin as payment. If the value of Bitcoin plummets, you may find yourself unable to cover your costs or make a profit.
On the other hand, if the value of Bitcoin skyrockets, you may find yourself sitting on a fortune. Cryptocurrency price volatility can be a blessing or a curse, depending on which way the market is moving. However, one thing is for sure: it can make for some very exciting (and nerve-wracking) times.
2. Limited Come Back
Even though credit card companies and banks have protection measures in place to keep you from unauthorized spending, cryptocurrencies don’t have that same level of protection. With crypto, there’s no such thing as buyer protection, so you might have to build trust with clients before they’re willing to use crypto payments.
It’s important to be careful when you’re dealing with crypto because if something goes wrong, there’s no way to get your money back. That’s why it’s crucial to take the time to build trust with clients before you start doing business with them. Otherwise, you could end up losing a lot of money.
3. Environmental Impact
The environmental impact of bitcoin mining is a hot topic among crypto enthusiasts. While bitcoin proponents tout the digital currency as a revolutionary way to move money around the world, others are quick to point out its large carbon footprint.
Bitcoin is produced through mining, an energy-intensive task that consumes more electricity annually than the entire country of Argentina. And as more and more people begin to mine bitcoin, the carbon footprint of the digital currency is only expected to grow.
This issue came to a head recently when Elon Musk and Tesla refused to accept bitcoin as a form of payment because of its environmental impact. The announcement sent shockwaves through the crypto world and caused the price of bitcoin to drop sharply. While bitcoin may be a revolutionary technology, its large carbon footprint could ultimately hinder its adoption.
Cryptocurrency has the opportunity to transform eCommerce and traditional trade. Accepting Bitcoin is a great way to make sure that you can accept payments from customers no matter where they are in the world.
By offering Bitcoin as a payment option on your site, you can open up your business to a whole new group of potential customers.