The rise of cryptocurrency has created new challenges for governments, banks, and the e-commerce industry to navigate. Cryptocurrency in e-commerce aims to enable online stores and retailers to accept customer payments in digital cryptocurrency.
While some online retailers have already began to accept customer payments in Bitcoin, the conversation surrounding the use of virtual currencies in e-commerce remains limited.
A study by Artios estimates that worldwide e-commerce sales are projected to grow to nearly $6.9 trillion dollars in 2024, and over $8.148 trillion dollars by the end of 2025. As more and more transactions move online and buyers look for more secure and dynamic ways to handle their digital wallets, cryptocurrency is projected to play a significant role in this growth.
Cryptocurrency offers several benefits to e-commerce businesses and customers. Accepting cryptocurrency payments can help to widen your target market, boost sales, and prepare your store for the future of e-commerce.
Get A Free Quote
Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
This blog will explain what cryptocurrency is, and the benefits of cryptocurrency in e-commerce and for e-commerce stores.
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that does not rely on any central authority, such as government or bank, to verify transactions.
It is secured by cryptography, which makes it near impossible to counterfeit, reducing the risk of fraud. This virtual currency is exchanged through a computer network that allows people to make payments directly through an online system.
They have no legislated value meaning they are worth what people are willing to pay for them in the market and can lower the feed and commissions that eCommerce and online businesses are currently required to pay, as well as lower the processing time of payments and decrease the risk of chargebacks or fraud.
The most well-known cryptocurrency is Bitcoin, the original cryptocurrency. It is the coin most people refer to when discussing digital currency.
As consumers become increasingly familiar with their crypto wallets and the opportunity digital currency presents, e-commerce retailers and business owners will face higher expectations around the acceptance of cryptocurrency.
The benefits of cryptocurrency in e-commerce
Fast transactions
Digital payments are processed quickly as, unlike traditional payment methods, they do not require banks, payment processors, or third-party platforms to facilitate transactions.
This in turn can also reduce transaction processing fees associated with credit card payments and cross border payments.
Future ready
Accepting cryptocurrency payments can prepare your e-commerce store for the future and become attractive to modern, tech-savvy consumers. Positioning your e-commerce store as a forward-thinking and innovative business, can have positive consequences and help you stand out among competitors.
Ensuring your store and e-commerce checkout is equipped to accept cryptocurrency ahead of the demand, ensures that as consumers become familiar with digital currency and their crypto wallet, you can maximise and secure sales.
Accessibility
By allowing your e-commerce store to accept cryptocurrency payments, you become accessible to a wider target market and offer financial inclusion to customers without access to traditional banking services.
Enabling a wider audience to access and purchase from your e-commerce store means you are likely to benefit from an increase in sales, leads, and brand awareness.
Global reach
With no border boundaries, cryptocurrency can be used in international transactions to expand your e-commerce store’s global reach. This allows you to serve customers all around the world without border restrictions and expensive processing fees.
With the implantation of digital currency, your store can reach international markets and benefit from international business.
Things to consider before accepting Cryptocurrency
While there’s no doubt that cryptocurrency is making waves in the eCommerce space, it’s important to weigh up the benefits and key considerations before you choose to accept cryptocurrency for your eCommerce business.
At the moment, crypto pricing can be volatile as it is not backed by an official flat currency like the USD (US Dollar). Prices can rise and fall quickly over a short space of time, with no guarantee of returning to their previous state.
Why choose Unicorn Accounting?
At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.
Our team of accountants and Xero-certified advisors have experience working with both small start-ups and family-run online stores to large-scale, international retail and e-commerce brands.
If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience, and skills with innovative technologies. To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today.
Related articles
https://unicornaccounting.co.uk/blog/5-ways-ai-is-transforming-e-commerce/
https://unicornaccounting.co.uk/blog/how-ai-is-changing-the-online-storefront/
https://unicornaccounting.co.uk/blog/ai-powered-tools-for-e-commerce-management/
Get A Free Quote
Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
