It seems as though the world is going a little crypto-crazy right now. There are celebrities all over TV telling us to be bold and embrace crypto trading. If you stop by the water cooler at work, it seems like that’s all anyone wants to discuss.
There’s no doubt that crypto is changing the world. Websites exist dedicated to understanding the benefits of each cryptocurrency platform. There are also hundreds of different crypto forms, and more seem to join this crowded marketplace every day.
eCommerce is one area that should see significant changes because of crypto’s popularity. We’ll explore that a little in the following article.
What is eCommerce?
eCommerce is a blanket term. It refers to any buying and selling that takes place online. If you mention eCommerce, that might mean buying something on Amazon or selling an item on Etsy or eBay.
The digital world is also a burgeoning marketplace. Ten years ago, some people were still reluctant to buy anything online. For the most part, the older generations picked it up later, as often happens when new technology emerges.
At this point, though, some Gen Z members can’t remember a time when you couldn’t order virtually anything you wanted and get it delivered right to your door. The pandemic certainly supercharged this notion, but even before Covid-19 showed up, Americans were more inclined to want things delivered than at any other time in history.
One interesting question, though, is what crypto and its meteoric rise will mean for eCommerce in general.
What You Can Do with Crypto
Many individuals who purchase crypto see it as an investment instead of a way to buy things. The idea that most of them have is to snag a crypto form when it doesn’t cost as much, in the hope that it will take off in the same way that Bitcoin did. It’s pretty attractive to think that you could buy some obscure crypto form for about a dollar each and then see its worth climb to thousands of dollars within months or years.
The reality is that many of them likely won’t do that, but speculating is fun if you have the money for it. In the meantime, many vendors look at crypto as a valid payment method. Right now, you can utilize crypto to buy cars, clothes, food, jewelry, and much more. Some vendors don’t accept it yet, but others see the potential.
However, the question of how crypto and its rising popularity will impact eCommerce in general remains.
How Will Crypto Change eCommerce?
If you’re looking for a concrete answer as to how crypto will change eCommerce, the short answer is that no one knows. However, we do have some clues, and they’re worth discussing, especially if you’re someone who owns an eCommerce entity, like a website that ships products around the country or even internationally.
So-called legitimacy is one area that eCommerce vendors should pay attention to regarding crypto. At the moment, crypto has virtually no regulation, though President Biden seemed to indicate recently that’s going to change. Crypto legitimization should mean that bigger enterprises the world over will begin to accept it.
For instance, Mastercard recently announced that they would soon incorporate some crypto forms into their overall business model. Tesla said at one point that they would start accepting Bitcoin as a payment option for their vehicles, but they have backtracked since then.
Crypto’s security is one thing about it that makes it seem almost tailor-made for eCommerce transactions. When online buying first became an option, some potential customers worried about giving an online entity their credit card number. With crypto and the way you pay when you use it, that’s no longer a concern.
The typical online crypto transaction is as immediate as it is secure. It’s hard not to regard that as a win-win for someone trying to purchase an online service or product and the entity selling it.
There’s another crypto aspect that makes it even more attractive in the eCommerce world, though. Crypto offers a chance for the first true “global payment system” to exist.
Say that you have an online store, and you ship your products internationally. You can accept crypto, like Bitcoin, for instance, and you don’t have to worry about an exchange rate. Bitcoin is worth the same to anyone at any time. If you ignore its volatility, that makes it much easier to use and accept than exchanging British pounds for American dollars or anything along those lines.
Companies should be able to grow internationally much easier once they accept this business model. If they offer an easier way to pay, they should attract more customers. Their competitors will also have little choice but to follow suit, or this technology will leave them in the dust.
It also stands to reason that an online company that allows crypto payments should expect to see higher sale numbers as time passes. That is because they can attract an entirely new customer base: those who don’t want to use credit cards. There are many individuals out there who shy away from credit card use for various reasons, and now, they can feel included.
A crypto transaction’s immediacy also means that sale volume should go up because transactions will not clog up a website’s capacity to accept them. Crypto buying of online products will even do away with transaction fees that go along with some credit card payments.
The more you look at crypto’s very nature and online commerce, the more it seems like the two are compatible. Whether things will really turn out that way is far from certain. However, it’s easy to see why some potential customers want to see crypto acceptance from online entities as soon as possible, and it’s probably going to happen.
Rather than fizzling out, crypto seems to gain prominence with each passing year, and eCommerce could be the vehicle that legitimizes it more than ever before.