In E-commerce Pros of Embracing Cryptocurrency Payments guide, Cryptocurrency E-commerce is the use of cryptocurrencies to make purchases online. It is enlarged in admiration due to cryptocurrencies’ bottom amounts and quick proceeding speeds. Major sellers like Microsoft, Home Store, and Organic now receive cryptocurrency payments.
According to Statista, as of September 2021, there were over 11,000 different cryptocurrencies in existence. That specifies an advancing market with a wide variety of choices for investors and buyers. The total market capitalization of all cryptocurrencies reached a staggering $2.35 trillion during the same period.
Key Advantages of Cryptocurrencies
Businesses can gain several key benefits from embracing cryptocurrencies as payment options. The increasing popularity and acceptance of digital currencies offer substantial pros to organizations in several sections. Here are some pros, supported by relevant statistics:
I. Lower Transaction Fees
Using cryptocurrency for business transactions can save a lot of money. As a rule, when businesses accept credit card payments, they have to pay around 3% of the money they receive as a fee. But with cryptocurrencies, like Bitcoin, the cost is much lower.
For example, in September 2021, the average fee for a Bitcoin transaction was only about $2.78. This means organizations can save a lot of money when they utilize cryptocurrency for payments, making it a good choice for them.
II. Faster and Borderless Transactions
As the world changes, more and more people are using digital payments called cryptocurrencies. A survey indicated that over 106 million people globally use cryptocurrency in the first part of 2021. This means countless people like using digital payments because it’s fast and can be used universally. It’s like having money on a magic computer that can do things quickly and easily.
III. Increased Security and Reduced Fraud
Using cryptocurrencies assists businesses kept safe from unauthorized people who try to steal money. A special report found that 77% of companies had problems with thieves in 2020. But with cryptocurrency, it’s harder for the corrupt to cheat because of blockchain technology. A broad survey said that in 2020, stealing from people’s accounts will cost $3.4 billion. But using cryptocurrency can stop that from happening, making payments secure for everyone.
IV. Enhanced Financial Inclusivity
Cryptocurrencies can provide financial services to particulars who are unbanked or underbanked, improving financial inclusivity. According to the World Bank, approximately 1.7 billion adults worldwide remain unbanked. Cryptocurrency can serve as an alternative for these individuals, enabling them to participate in the global economy and approach financial services.
V. Attracting Tech-Savvy Customers
The popularity of cryptocurrencies has grown significantly among tech-savvy demographics. According to a study by Finder, approximately 22.2 million U.S. people hold cryptocurrency. By accepting cryptocurrencies, businesses can cater to this tech-forward audience, potentially attracting current and loyal consumers.
VI. Potential for Appreciation and Investment
Accepting cryptocurrency lets companies keep digital property that has the possibility for perception over time. As cryptocurrencies achieve mainstream adoption and acceptance, their cost may also increase. For example, Bitcoin’s price surged from $7,195 in January 2020 to over $46,000 in September 2021. By preserving cryptocurrency, organizations can gain from workable funding positive aspects.
Fast and Seamless Transactions
1. Transaction speed:
- The transaction speeds of all blockchains are nowhere near Visa.
- Even though, Ripple’s blockchain platform surpasses PayPal, capable of 50,000 tx/s with 4 seconds for transaction speed confirmation, yet not on par with Visa’s speed.
2. Client pleasure:
- Consumer satisfaction with transaction speed has extended by 25%.
- 98% of customers record a clean and straightforward transaction enjoy.
3. Error Rate:
- Transaction mistakes fee has dropped to an all-time low of 0.1%.
- 99.9% of transactions at the moment are error-free.
4. Mobile Payments App:
- By 2021, mobile payments transaction volume is projected to reach $1.7 trillion end users.
- The chairman in particular states or nations may spectator remarkable revenue growth, given the integration of these apps with other commercial resources.
5. Transaction volume:
- Transaction Volume evaluates data volume produced by the initiate and performs records.
- For example, with an Inbound Transaction Rate of 50 transactions per second, and 20% renovation to duplicated tables duplicated through queue 1, its Outbound Transaction Rate is 5 transactions per second (50 * 0.5 * 0.2).
6. Downtime and Reliability:
- Device downtime has been decreased to less than 1 hour in line with the month, resulting in 99.9% uptime.
- The device is now greater reliable, with a failure price of best 0.05%.
- The fake transaction charge has decreased by 70% because of stepped-forward security measures.
- Advanced encryption protocols have been applied, ensuring facts are honest and protected.
8. Person Adoption:
- The variety of recent customers registering for transactions has grown by 40%. Because of those upgrades, more customers were interested in the platform, with a 40% growth in new registrations. Presently, 80% of clients are actively using the platform for their transactions.
How do cryptocurrencies facilitate fast and streamlined transactions?
Cryptocurrencies allow quick and efficient payments through several key features and underlying technologies:
1. Global Accessibility
Cryptocurrencies can be sent and received anywhere within the globe with a web connection. Cryptocurrency performs on a worldwide network, doing away with the need for intermediaries like banks. This enables smooth cross-border payments without delays or additional fees.
Cryptocurrencies are available for transactions 24/7, including weekends and holidays. Unlike traditional banking hours, cryptocurrencies operate non-stop, enabling users to make payments or transfers at any time convenient for them.
Cryptocurrencies are not controlled by any single person or organization, they work separately.
Cryptocurrencies are not managed through any significant entity, government, or organization, this means that customers have a complete handle over their funds, and transactions aren’t subject to potential disruptions due to centralized structures.
In conclusion, by embracing cryptocurrencies, businesses can enhance financial inclusivity, reaching underserved populations and empowering them with access to formal financial services. The potential to include the unbanked and underbanked in the global economy is a powerful and positive impact that cryptocurrencies can bring. As the adoption of cryptocurrencies grows, businesses can also benefit from reduced transaction fees and improved financial security.