Cryptocurrency in E-commerce – 5 Best Pros & Cons

Pro – New customers

A cryptocurrency transaction is straight from customer to recipient. This means there is there are no bank requirements and you can accept payments from customers worldwide that don’t have access to banks. 69% of Vietnam and 60% of Nigeria are unbanked according to Statista. This adds up to 186 million people in just two countries. Even in the developed its beneficial to accept cryptocurrency as a payment for your E-commerce store as people that would normally be able to pay for goods can lose their ability to pay at any time. Earlier in 2022 PayPal shut down their services in Russia. This is instantly nearly 150 million people unable to use a certain payment processor.

Con – Not as simple

Crypto is known for its volatility. Ethereum has increase 1822% in the last two years. It is also down 20% year to date. With the price going up and down so rapidly you would need to find a way to price items and figure out what to do with the crypto once received. What about if a customer wants a refund but the price of the chosen crypto is vastly different? If your not careful your E-commerce store -could end up losing money.

Pro – Secure

Every crypto transaction to your E-commerce store is final. There is zero way for customers to perform a chargeback to receive their goods and money back. You are protected against this type of fraud.

Con – Takes responsibility

As you will be responsible for the funds, if you were to lose your seed phrase and access to your wallet, all the crypto in that wallet would be lost with no bank to replace your lost funds. If your E-commerce store was to accept crypto for payments it is important to protect your funds.

Pro – Low fees

Transaction fees are an important part of setting up an E-commerce store. PayPal can have fees of up to 4% per transaction. Stripe has fees up to 5% per transaction. If you choose a crypto payment gateway fees are much lower – most being below 1% per transaction, with Binance being as low as 0.04 to 0.1% transaction fees. This will either let you profit more as less money is gone on transaction fees or allow you to lower your price so you can undercut the market.

These are just a few of the main pros and cons of accepting cryptocurrency in your E-commerce store, and payment methods are only one aspect of an E-commerce store. Why not check out “6 Essentials for an E-commerce website” by clicking here.

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