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Shopify expands its Crypto payment options for E-commerce
- Martin Harper
Shopify now offers Crypto payments, but what does this mean for the future of e-commerce and Shopify merchants? With more consumers than ever looking for flexible payment methods, digital currencies are becoming far more widely used. By offering the option to pay with Cryptocurrency, your e-commerce business can provide a much better user experience which in turn means more conversions and sales.
Before we look at whether it’s right for your e-commerce business, let’s start with the basics.
What is Cryptocurrency?
Cryptocurrency is an online data string that represents a unit of digital currency. It is encrypted for security and monitored and organised by a blockchain – a peer-to-peer network of buyers and sellers. Transactions are verified and records maintained by a decentralised system using cryptography rather than by a centralised authority such as a bank.
Crypto is a digital-only currency. It has no physical nature, such as pounds sterling or US dollars, which have notes and coins. It exists within computer networks.
Unlike physical currencies, Cryptocurrencies aren’t issued by governments or financial institutions, they’re decentralised. Their exchange rate and value aren’t monitored by banks and governments, they are peer-to-peer and passed only between individuals who are in charge of their currency.
There are multiple Cryptocurrencies, none of which are affiliated with any particular country. They have the same value in every country globally. This means that they can be traded freely between countries without worrying about exchange rates.
Crypto is encrypted, meaning the user’s privacy is protected, and real names aren’t used. Instead, users are given codes which are attached to their currency. Crypto actually translates from Latin and means hidden; therefore, Cryptocurrency is essentially hidden money.
What are the benefits of accepting Cryptocurrency in Shopify?
Crypto can be a great option not only for huge companies but small and medium merchants and even brick-and-mortar stores. The key benefits of accepting Cryptocurrency to note are:
- Fast transactions
- Low processing fees
- No chargebacks
- Global transactions
- More convenience for your customers
- Easy to set up
Reduced processing fees
The leading payment gateways such as PayPal or Stripe have a minimum fee of 2.9% + 20p for processing international transactions and 1.4% + 20p for UK cards whereas Crypto processors either don’t charge a thing or have minuscule fees like 1%.
Faster transactions
Cryptocurrency transactions don’t depend on bank working hours, meaning payments can be taken 24/7 without the need for a bank to be open and transferring the funds. Everything happens in real-time.
As Crypto is global, it doesn’t matter which time zones transactions take place; you’ll receive payment in a matter of minutes. For e-commerce businesses, this can help cash flow and improve user experience.
Minimised risk of fraud
Due to the advanced data encryption, Crypto payments are much safer than traditional currency transactions. The enhanced security is down to the technology behind the blockchain, especially with sensitive private data, which has full transparency and distribution of data across a network to exclude unauthorised access and safeguard the details of transactions.
Protection for buyers using Crypto
With Cryptocurrency, users can send money to each other online without the need to put their trust in one another or any third parties. Each transaction is recorded on a shared database – a blockchain – and verified across the system by nodes. All transactions that are added are permanently recorded and can’t be altered, this comprehensive record protects both the privacy and interests of users.
Crypto is a digital currency that can be sent from anywhere to anywhere with no third-party involvement and protection of personal data. With online privacy becoming more of a concern for consumers, it’s easy to see why Cryptocurrency is becoming a more popular form of payment.
How shoppers can use Cryptocurrency
For anyone who wants to use Crypto to pay for goods, you’ll need a Crypto Wallet to store your funds. There are several online platforms available, some free, some with a fee. These digital wallets are designed for ease of use and can be used on desktop computers or even smartphones. It’s vital that you choose a secure and reliable wallet platform to make your purchases, as you will need to provide some personal details when you sign up, which will be held secretly and securely.
Ecommerce merchants who accept Crypto as payment will typically have a “pay with crypto” button displayed clearly. This will automatically direct consumers to make their payment at the checkout. From here, the price in Crypto will be shown and then the option to complete your purchase using your wallet.
Alternatively, you have the option to pay with a Cryptocurrency debit card, just as you would with any regular credit or debit card. Many of these are in partnership with major card issuers such as Visa and Mastercard, making them acceptable almost everywhere as payment methods. You can top them up via a website or an app which will load your available currency onto the card.
Is Cryptocurrency the future of ecommerce?
At the moment, the number of merchants accepting Crypto as a payment method is relatively small but is growing by the day. Crypto doesn’t yet feel altogether accessible to your everyday consumer, and unless they’re already confident using Crypto they may be a little wary. This is where a good marketing strategy can help make your customers feel more at ease.
Payments via Cryptocurrency do have the chance to become industry standard for ecommerce merchants in the fairly near future. By arming yourself with information now, you can capitalise on this opportunity for growth and an ever-changing online world.
The ultimate goal of any ecommerce business is to turn browsers into buyers and by offering multiple payment options, you can ensure you’re making your user’s experience easy and suited to each individual.
Tips to success when accepting Cryptocurrency
When you start taking Crypto as payment, it’s important to bear a few things in mind.
- Work with a trusted adviser who has the knowledge to help your business deal with crypto.
- Keep your password super safe; without it your Crypto Wallet is useless, and money will be lost
- Be sure to check the tax implications and keep your accountant totally up to date
- Make sure you have a solid understanding of Crypto and how it will affect the day-to-day running of your business
- When deciding to add Crypto as a payment method, make transactions as simple as possible for your customers.
Now you know a little more about using Cryptocurrency in your ecommerce store, will you be making the change and offering it as a payment method? Not sure how, or want some more information? Contact us. Either give us a call on 01603 298200 or get in touch to discover how Quickfire Digital can help your ecommerce business.
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