The worldwide capability of cryptocurrencies and their growing popularity is set to have a huge influence on the world of eCommerce. But how will it help to expand the overall accessibility of the eCommerce market? Here, we’re taking a closer look.
One of the key benefits of cryptocurrencies is their global accessibility. With minimal government restrictions and regulations in place, except in China where cryptocurrency trading still manages to take place despite strengthening bans, cryptocurrencies are able to be accessed and traded by populations from across the globe using integrated investment platforms which require nothing but an internet connection and a cryptocurrency wallet to get started.
In addition to this, customers are able to purchase products from international eCommerce sites at a fraction of the cost with cryptocurrencies, as cross-border payments benefit from minimal fees with this innovative digital asset.
This means that eCommerce sites could open up their metaphorical doors to a much larger target audience if they were to accept cryptocurrencies. Transactions via cryptocurrency networks are also much faster than traditional fiat currencies, and remain exceptionally secure, further helping to make products accessible across the globe.
New Opportunities For The ‘Unbanked’
The unbanked population of the world is now able to access eCommerce sites and purchase items like never before with the help of cryptocurrencies. This expanse of population doesn’t have access to bank accounts, which many other digital platforms such as PayPal require.
It was predicted in 2017 that around two billion people worldwide can be categorised as unbanked, and the integration of cryptocurrency technology allows these people to purchase items online like never before. For small businesses, and even large eCommerce sites, that’s two billion more people to market to who are now able to purchase products and have them shipped to their location.
Customer Privacy Fears
In an article published in 2011, it was reported that customers do not trust shopping online, and this suggested that the fears over internet security could result in the eCommerce industry being crippled. With the integration of GDPR across Europe, personal data and internet safety has been a hot topic over recent months. But where do cryptocurrencies fall into this?
Cryptocurrencies including the well-known Bitcoin, run off a technology known as blockchain. Many people remain sceptical about cryptocurrencies due to the fact that they remain unregulated by governments across the globe, but for many, it is believed that it is this decentralisation which helps to keep cryptocurrencies secure.
Blockchains are able to store data within a complicated algorithm, which makes it exceptionally difficult for hackers to break into and steal information. While with every technology there are a few sensitivities which can be addressed, when compared to the standard encryption of an eCommerce site, blockchain is a clear winner. With the history of every transaction using a cryptocurrency secured and recorded within the blockchain, manipulation of funds and fraud becomes extremely difficult for anyone to take hold of.
If an eCommerce site was to introduce this form of technology into its outfit, then customer transactions will be secured by some of the world’s most innovative and secure encryption technology in the world.
As you can see, there are a broad number of ways cryptocurrencies are set to expand the world of eCommerce further than it has ever gone before. With the integration of this technology, eCommerce merchants are able to reach new customers across the globe, while benefiting from fast transaction speeds and low costs, as well as guaranteeing peace of mind for their consumers.
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