With the rising appeal of multi-choice payments in the eCommerce and retail market, businesses need to rethink their approach in regards to providing customers with versatile purchase options. Whether you aim to integrate cryptocurrency payments into your business shortly or already feature several prominent currencies as payment methods in your company, the appeal of implementing digital currencies is certainly there.
According to
SoftwareFindr, 4.68% of millennials have invested in cryptocurrency acquisition
of some kind, while 78.95% of cryptocurrency owners have acquired their coins
through peer-to-peer purchases. However, just like with any form of technology
or financial feature, cryptocurrency’s implementation will inevitably lead to
different pros and cons for your business. With that in mind, let’s dive into the
advantages and disadvantages of featuring cryptocurrency payment options for
your business going forward.
Pros 1: User-friendly versatility
Giving your
customers and clients as many payment options as possible will ensure that they
are comfortable with using your eCommerce store or website. According to
Medium, there are around 24 million Bitcoin users around the globe and around
31 million Ethereum users accordingly.
Cons 1: Currency Fluctuation
As with all
types of payment options and currencies, cryptocurrencies also fluctuate in
value over time. However, their fluctuations are somewhat sporadic due to the
nature of cryptocurrency exchange and additional coin generation. In addition
to professional crypto exchange software, you can refer to localization tools
such as The Word Point for any international cryptocurrency exchange needs
going forward. Blockchain technologies are used to track each coin regardless
of its currency, point of origin, or current owner.
Pro 2: Minimize chargeback fraud
Chargeback
fraud is an important subject of conversation when it comes to currencies
available for use on your business’ website. In short, this process involves
illegitimate chargeback requests from users who ordered goods or services from
your business, resulting in your loss of revenue and those goods as a result.
Con 2: Potential territorial regulations
Transactional
fees, taxes, and other territory-based price regulations may prove bothersome
when it comes to cryptocurrency implementation. Simply put, cryptocurrencies
are entirely digital and, for many countries, miles away from proper
regulation.
Pro 3: Low transaction fees
Many payment
services such as Payoneer and PayPal will place additional costs on your
transfer requests and incoming payments as a result of using their services.
However, cryptocurrency transaction fees are minuscule in comparison, leaving a
lot more revenue in your hands at the end of the day.
Con 3: It takes time to set up
Setting up
your cryptocurrency payment options may require additional time and set up in
comparison to other transaction channels. One of the options you can go for is
to create your business’s own crypto wallet and receive payments directly
through it. Similarly, eCommerce websites may require additional plugins for a cryptocurrency
exchange to take place in a safe and practical environment.
We hope you have found this article
informative and interesting. For more information or queries contact us to know more about this technology.
Comments
Post a Comment