The impacts of cryptocurrency on e-commerce
The emergence of internet paved way for e-commerce to establish itself firmly, making buying and selling just one click away. And with the availability of small computers in the form of smartphones, e-commerce has seen continuous growth.
What is e-commerce?
Thisis the buying and selling of goods and services, and transmitting of funds or data over the internet. Its benefits are enormous and includes; around-the-clock availability, ease and speed of access, wide availability of goods and services and across border reach.
What changes has cryptocurrency brought to e-commerce?
No more excessive fees. When transacting with fiat money, whether you are using credit cards or payment processors like PayPal, the fees are outrageous. With credit cards, both the bank issuing the card and the bank accepting the payment all demand some fees. Transfers on PayPal and other processors attract so much fees, even before you fund your PayPal account, there is always charges from your bank. With cryptocurrencies, these fees are almost non-existent. And there is the issue of chargeback fraud. Some customers are dishonest and use chargeback as a way of getting their desired goods and services without paying for them.Cryptocurrencies offer no chargebacks, so dishonest customers have no play here.
Improved security. Everyone is aware of the numerous incidence of credit card thefts. This happens mostly because making payments online requires one to provide almost every detail of the card, which is laid bare for smart guys with skills to steal. With cryptocurrencies there isn’t much you are sharing on any e-commerce site, and your transactions are heavily encrypted with the best encryption there is. Again there is no limit to the number of cryptocurrency wallets one can create. You can choose to create a new wallet for every new transaction. This gives you peace of mind even if the e-commerce site is hacked, since you no longer have any coins on the wallet you used for that particular site or for that particular transaction.
Improved speed. Sometimes many business men and women are frustrated by the delays in moving money from one bank to another, especially if it is across border. Even payment processors take time too. This puts a sort of standstill to operations on both sides, because the seller cannot in good conscience relinquish his goods without receiving confirmation of payment. With cryptocurrencies, transfers are fast. The highest you can wait is 10 minutes, while some happen in seconds.
No across border limits. Most shoppers in third world countries bear witness to the fact that they are unable shop on many platforms. These countries do not have robust credit card systems, even their banks find it hard to fund processors like PayPal. Cryptocurrencies have provided solution to this. They empower people all over the world to shop and transfer money in just one click, as long as you have internet. Though many countries still do not approve the use of cryptocurrencies, it’s only a matter of time because they are gradually getting inline.
With the growing popularity and interest in cryptocurrencies, transactions can only become faster, cheaper, more secure and more efficient. All these will bring, without doubt, enormous activities and growth to the e-commerce industry.