What the prospect of crypto payments could mean for the e-commerce sector
With e-commerce considered vital to the global business landscape, experts look set to explore how crypto integration can ensure its growth. From an organizational point of view, cryptos can help support e-commerce-based cross-border payments.
Insights from CoinGate, a crypto payment processor, stated that 2022 would witness more than 60% crypto-based e-commerce transactions. The platform’s research also showed that CoinGate-oriented merchants secured 927,294 crypto payments with Bitcoin clocking 48% of all transactions, by 2022. “I believe the importance of crypto payments in e-commerce lies in its ability to provide a decentralized payment method. In 2023, crypto-based e-commerce payments can make a difference by offering convenience and flexibility to customers, Punit Agarwal, founder, KoinX, a cryptocurrency taxation platform, told FE Blockchain.
Prospects around crypto-based e-commerce payments suggest that marketplaces can gain a competitive edge by reaching out to customers regardless of geographic boundaries. According to ShipHero, an e-commerce platform, crypto-based e-commerce stores can tap into a market of tech-savvy customers, limit transaction fees to 1.5% and reduce fraud through distributed ledger technology (DLT). However, crypto’s introduction into e-commerce may expose buyers to high price volatility and regulatory concerns.
“In 2023, the potential for cryptocurrency-based e-commerce payments to revolutionize the digital payments industry is high. They can provide a secure and efficient way to buy and sell goods and services globally. The two primary drivers that could increase the adoption of crypto-based e-commerce payments in the future, is regulations and acceptance,” emphasized Edul Patel, co-founder and CEO, Mudrex, a crypto investment platform.
Reportedly, companies such as WooCommerce, Open Bazaar, PrestaShop, among others, have added crypto-based payment mechanisms for customers. For example, Open Bazaar allows forms of e-commerce between businesses and individuals with a crypto background.
Furthermore, future predictions indicate that e-commerce can help drive mainstream cryptocurrency adoption and enhance the development of new payment technologies. As stated by Manchester Digital, an independent industry association, the number of merchants around crypto payments is seeing an upward trend, due to the presence of third-party payment processing systems such as Bitpay and Cryptopay.
“The future of cryptocurrency-based e-commerce payments looks promising, with experts predicting growth in the coming years. However, there are issues that need to be addressed, such as cryptocurrency volatility and lack of widespread adoption. It is likely that crypto payments will become an important part of e-commerce transactions,” concluded Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange.
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