Cryptocurrency’s Potential To Transform E-commerce Payments

Cryptocurrency’s Potential To Transform E-commerce Payments

In today’s digital era, the world of e-commerce has experienced rapid growth, creating a fiercely competitive landscape where payment methods play a crucial role. A question that experts and enthusiasts are asking is whether cryptocurrency has the potential to surpass traditional payment methods and become the preferred choice for online transactions. To answer this question, it is important to analyze the opportunities and challenges associated with each payment system and explore their potential impact.

Traditional payment methods like credit and debit cards, bank transfers, and cash-on-delivery have long been dominant in e-commerce transactions. Many consumers are accustomed to using these familiar options, finding them convenient and reliable for online purchases. Established payment providers offer security measures such as fraud detection systems and chargeback alternatives, instilling confidence in the reliability of these traditional systems. Moreover, traditional payment methods often come with appealing incentives like cashback deals, points, and rewards, fostering customer loyalty and encouraging repeat transactions.

On the other hand, cryptocurrencies offer a range of unique benefits that could reshape the e-commerce landscape. Cryptocurrencies empower users by bypassing centralized institutions like banks, giving them greater control over their transactions. Additionally, cryptocurrencies typically feature lower transaction fees, which is especially attractive for cross-border transactions. Supported by innovative blockchain technology, cryptocurrencies provide a secure and transparent transaction environment, safeguarding users against fraud and potential data breaches.

To foster cryptocurrency adoption in e-commerce, innovative developments have emerged. Platforms like Uquid have introduced unique features that closely resemble the advantages provided by traditional payment solutions. For instance, they allow customers to make installment payments with cryptocurrencies, enabling them to retain their crypto assets and potentially benefit from future value increases. This feature provides customers with a comfortable way to finance their purchases while holding onto their cryptocurrency investments. Additionally, these platforms support small transactions, eliminating barriers to entry and expanding the range of applications for cryptocurrencies by introducing the concept of micro-purchases. By offering rewards and incentives to users who choose cryptocurrencies, they level the playing field for crypto transactions, making them more appealing as a valid payment option. The Buy Now Pay Later (BNPL) option eliminates concerns about credit history checks or negative impacts on credit scores for late payments, benefiting the unbanked, younger individuals, and even investors who primarily view crypto as a store of value.

Cryptocurrency exchanges are also joining this movement. Take Bybit Exchange, for example, which recognized that its existing user base consists of shoppers as well. They have launched a cryptocurrency card that works with traditional payment gateways, capturing the attention of their users. This strategy increases user engagement and loyalty. Bybit’s users can now trade on the platform, save part of their earnings for a reasonable amount of interest, and spend another portion within the same ecosystem. Unlike e-commerce platforms, Bybit already has a ready user base who are supporters of their trading platform, so they don’t need to focus on attracting new users. In fact, the more projects they list, the more new users will trade, and more users will consider using the platform as their preferred payment source. Converting them into card users is a much simpler process. This captive user base can then become a new revenue stream for the exchange.

The same concept applies to projects with a strong community base, including popular meme cryptocurrencies. Shiba Inu, inspired by the Shiba Inu dog meme, has gained significant attention and popularity recently. Its rise to prominence has attracted investors and enthusiasts, leading to a growing community of Shiba Inu supporters. E-commerce stores have recognized the potential of this digital asset and have begun accepting Shiba Inu as a form of payment, further blurring the lines between traditional and cryptocurrency-based transactions. This integration opens up a range of possibilities and benefits for both consumers and merchants. For consumers, it means having an additional payment option that aligns with their preferences and allows them to leverage their holdings in a practical way. It enables them to actively participate in the cryptocurrency ecosystem, creating a seamless bridge between their digital assets and the goods or services they wish to purchase.

Merchants also stand to gain from this integration in several ways. Firstly, it expands their customer base by appealing to a niche segment of cryptocurrency enthusiasts who specifically hold Shiba Inu tokens. By catering to this audience, e-commerce stores can tap into a passionate and engaged community, potentially driving increased sales and customer loyalty. Integrating the token also offers merchants an opportunity to differentiate themselves in a competitive market. With the growing popularity of cryptocurrencies, businesses that embrace these innovative payment methods demonstrate a willingness to adapt to changing consumer preferences and cater to the needs of a technologically savvy customer base. This can enhance their brand image and position them as forward-thinking and customer-centric entities.

While cryptocurrencies have the potential to play a more prominent role in the future of e-commerce payment systems, it is unlikely that they will completely replace traditional methods immediately or effortlessly. The most likely scenario involves a cooperative coexistence between conventional and cryptocurrency payment solutions, catering to a variety of consumer preferences and needs. As innovative platforms continue to develop features specifically tailored to cryptocurrency payments, they are driving increased adoption rates, enhancing user experiences, and securing a larger market share within the e-commerce industry.

In conclusion, the potential of cryptocurrency to transform payment systems in the world of e-commerce is undeniable. While traditional payment methods offer familiarity, convenience, and security measures, cryptocurrencies bring unique advantages such as autonomy, lower fees, and secure transactions through blockchain technology. However, challenges like volatility, regulatory concerns, and lack of consumer protections hinder widespread adoption. Innovative developments, such as platforms offering installment payments and rewards, as well as cryptocurrency cards linked to traditional payment gateways, are bridging the gap between traditional and cryptocurrency-based transactions. Embracing popular meme cryptocurrencies like Shiba Inu also opens up new possibilities for consumers and merchants alike. The future of e-commerce payments likely involves a cooperative coexistence of traditional and cryptocurrency solutions, with ongoing advancements driving increased adoption rates and enhanced user experiences. By incorporating novel features and technologies, the cryptocurrency landscape can shape a more secure, inclusive, and innovative e-commerce industry for consumers worldwide.

 

Source: https://www.benzinga.com/markets/cryptocurrency/23/07/33255509/cryptocurrencys-potential-to-transform-e-commerce-payments

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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What’s the importance of cryptocurrency payments going mainstream?

What’s the importance of cryptocurrency payments going mainstream?

A sign of the growing mainstream acceptance of cryptocurrency came recently with the announcement that US-based cinema chain AMC will soon be accepting cryptocurrency payments. It comes just a few months after PayPal decided to allow US consumers to use crypto to make purchases, and news that Mastercard would be supporting cryptocurrency payments across its network. The question is though, while use of crypto for financial transactions may makes sense, is buying your movie tickets and popcorn with Bitcoin worth the bother?

In August, AMC announced that it would for the first time accept Bitcoin as payment. This was followed by news that moviegoers could also pay for tickets online with Ethereum, Litecoin, and Bitcoin Cash. AMC’s CEO Adam Aron tweeted: “Cryptocurrency enthusiasts: you likely know @AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021. I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash.” One unexpected reaction to the news came from the Dogecoin community on Twitter, who see the meme coin as a more natural crypto payment coin.

Top DogeCoin YouTuber @Mark Wallace tweeted in reply to Aron: “You could have effortlessly had millions of new supporters by accepting #Dogecoin. No reason not to when you literally accept Litecoin which is also based off BTC. Selling all my AMC stock to buy more $Doge. Ridiculous.” The strength of reaction is perhaps not surprising considering that Shark Tank star and billionaire owner of the NBA team Dallas Mavericks, Mark Cuban, told US-broadcaster CNBC recently that not only is Dogecoin “a medium that can be used for the acquisition of goods and services,” but that also “the community for doge is the strongest when it comes to using it as a medium of exchange”.

Certainly, BigONE believes that mainstream cryptocurrency adoption is a key driver in the price of digital currencies earlier this year. This belief is supported by global finance executives polled by ‘Big Four’ auditors Deloitte. In Deloitte’s 2021 Global Blockchain Survey, 81% of the financial services executives believe that blockchain technology is “broadly scalable” and has achieved mainstream adoption. In the retail sector, Walmart and Amazon’s crypto recruitment announcements have raised awareness that these retail behemoths may be planning to open their doors to cryptocurrencies. It maybe a little ambitious to believe the giant online retailer Amazon will go as far as implementing Dogecoin for payment purposes, but that hasn’t stopped a petition titled ‘Doge4Amazon’ from picking up strong community support in 2021. Started three years ago with 20k supporters, in a sign if then times in the last 6 months its jumped from 75k, to 100k, and now to close to 250K signatures. Consumers can already use cryptocurrency to pay at other retailers such as Overstock, Best Buy, and Starbucks via third-party apps.

What’s the importance of cryptocurrency payments?

When Bitcoin was first introduced in January 2009, it promised to be the world’s first digital currency that did not require the support of a bank or government, its supporters claiming it promised a decentralized payment method that would change the world’s economic structure. With the emergence of more and more cryptocurrencies, the total market value has surpassed $2 trillion. Although blockchain technology is transforming many industries, cryptocurrency has yet to reach its full potential as a payment method.

One of the main factors influencing the adoption of cryptocurrency by both businesses and consumers as a payment method is its volatility. While Bitcoin’s price has risen by more than 50 million percent since its inception at $0.08, it has experience d many peaks and troughs in value along the way, making people wary of using it for consumption. For example, by the end of 2013, bitcoin had reached a fresh new high of US$1,164. But before reaching its 2021 peak, Bitcoin moved much lower before going higher — between 2014 and 2015, stagnation and volatility chipped away at the crypto’s value, reducing it to US$245 by October 2015, according to an analysis in Blockchain Investing News.

While there are certainly challenges in accepting Bitcoin for payments, especially when the price volatility is factored in, more and more merchants are looking to add crypto purchasing to their business. According to a survey last year by BitPay, “up to 40% of customers that pay with crypto are new to the merchant. Second, purchase amounts are twice that of credit card purchases. Third, crypto is less expensive than card cards, and lastly, there are no fraud-related chargebacks”.

Bitcoin has received a lot of attention as a store of value, which is why people like Mark Cuban consider it digital gold. Unfortunately, the use of cryptocurrency in daily payments has been hampered by high transaction fees and relatively slow transaction speeds. BigONE believes that now that AMC has decided to accept Litecoin, Bitcoin Cash, and Ethereum, the use of crypto will become more attractive to businesses. With Litecoin and Bitcoin Cash are designed to be faster and cheaper versions of Bitcoin, they could be better suited for digital payments going forward.

That said, the recent legalization of Bitcoin in El Salvador shows that adoption of BTC for payments can come from unexpected quarters. As reported in Cointelegraph the recognition of Bitcoin (BTC) as legal tender has opened up new payment options for its citizens, with fast-food empire McDonald’s accepting payments in the cryptocurrency through the Lightning Network. “Lightning Network will likely prove invaluable if El Salvador hopes to achieve the mass adoption of Bitcoin payments. Beyond immediate transactions, however, El Salvador’s Bitcoin gambit could prove successful by streamlining global remittances, increasing the wealth of its citizens and attracting crypto-focused entrepreneurs to the country,” the report concluded.

Is it worth using crypto to buy movie tickets?

Popular cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, are all available for purchased on the BigONE Exchange. The question is whether these are better suited for long term investment, than for everyday payment purposes? On the other hand, cryptocurrencies are not company stocks; some were intended to be used as a payment method from the outset. Therefore, improving the cryptocurrency industry’s practicality and adoption rate will be critical to its success in this regard. However, to use your digital currencies as a regular payment method, you should always consider transaction fees and cryptocurrency volatility.

A clear use case for cryptocurrency comes with international money transfers, for example, with low transfer fees and fast transfer speeds, and anyone can use it. “However, Bitcoin has become less attractive for remittances due to the increasing cost of Bitcoin transactions. Some competing cryptocurrencies, such as Ripple and Dash, are also targeting the remittance market with substantially lower fees,” suggested a recent report in Investopedia.

Another critical factor to consider in crypto payments is taxation. Many countries worldwide require cryptocurrencies to be taxed as property. In addition, the holder must report the cryptocurrency’s time of use and purchase and may be subject to capital gains tax. Thus, using your cryptocurrency is the same as selling it to the US tax authority, the IRS. Recording transactions may work for large purchases, but it could prove difficult and expensive for small payments, such as movie tickets. As reported in Forbes, this is because in the US crypto taxes are based on a 2014 ruling that determined cryptocurrency should be treated as a capital asset, rather than a currency like dollars or euros: “Let’s say you bought $20 worth of Bitcoin and held it as it rose in value to $200. If you used the bitcoin to buy $200 worth of groceries, you’d owe capital gains taxes on the $180 in profit you’d realized — even though it seems as if you spent the Bitcoin, rather than sold it. For the IRS, it’s the same thing.”

In simple terms how you use cryptocurrency depends on why you hold cryptocurrency in the first place. For example, if you believe in the wider benefits of decentralization, you are more likely to take advantage of AMC’s new payment option, to pay in crypto for the latest movies. However, you should also regard cryptocurrency as a long-term investment. Indeed, whether AMC’s move will be copied by its competitors remains to be seen. There’s also plenty of support on Twitter in response to the tweeted announcement. Twitter user @SackarisJames and self-proclaimed AMC stockholder posted: “Here come all the ‘why would I spend Bitcoin on movie tickets’ people but in the next breath ‘we need more places to accept crypto, so it becomes a form of currency’”.

 #anndyliansays

 

Shorten version can be found at: https://hackernoon.com/are-crypto-payments-going-mainstream-with-amc-news

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j