Cryptocurrencies have risen from the fringe and threaten to take over how people exchange value throughout the world. Bitcoin, long considered a store of value, is gaining traction as a currency. Now that all the highs of 2017 have been breached, long-time holders are looking at how to accept Bitcoin payments and purchases.
Benefits of Bitcoin for eCommerce Business Owners
Merchants have a unique opportunity to become first-movers in their niches by adopting Bitcoin for their businesses. The benefits offer eCommerce entrepreneurs a chance to cruise by their competition by accepting payments in the cryptocurrency and enjoying the benefits it offers.
One of the biggest problems eCommerce business owners face with traditional transaction systems is chargebacks. Unlike credit card transactions, money transfers made with Bitcoin are not reversible. This means that the person that sent the payment cannot unilaterally demand a chargeback.
The eCommerce fraud attempt rate is estimated at four per cent annually, and credit card chargebacks are at the forefront of this problem. Bitcoin takes this issue out of the equation, giving business owners greater peace of mind.
Low Transaction Fees
Credit card processing fees tend to eat away at business owners’ profits. With a reliable Bitcoin processor, a company can enjoy as low as 0% processing fees for small sales volumes and up to 1% for websites with higher volumes. So it is avised accept bitcoin payments
Access to Wider Audience
The cryptocurrency community is home to plenty of early adopters that have built high net worth from holding Bitcoin since 2008. By catering to this ever-growing audience, a business can build a clientele beyond its regular audience. Most Bitcoin holders are liquid and can afford to pay for the products they enjoy. Therefore, having your eCommerce business serve this audience can prove to be very profitable.
Cons to Consider
There are a few potential drawbacks to consider when adopting Bitcoin for your eCommerce business. By no means are these prohibitive for adopting the larges cryptocurrency as your means of transaction. However, it would help if you also understood the downside to use Bitcoin.
The Bitcoin network depends on the vast size of its decentralized network for its security and reliability. On the flip side, when the network becomes congested with millions of transactions, it may take a little time for them to be validated. It isn’t uncommon to have to wait for a few hours for transaction validations.
High volatility makes Bitcoin a risky asset to trade. On the other hand, volatility becomes irrelevant if you do not denominate your Bitcoin in dollars or other fiat currencies. When the day comes that cryptocurrencies become one of the main modes of transaction, dollar values will impact how users view price.
For now, keeping an eye on the Bitcoin price will give you an idea of what the crypto market is doing. Experienced cryptocurrency enthusiasts know that most other cryptocurrencies follow Bitcoin’s lead.
How to Accept Bitcoin Payments
Website owners can easily start accepting Bitcoin by integrating a BTC payment processor into their eCommerce stores. Most eCommerce content management systems have addons or plugins that allow for intuitive Bitcoin payment acceptance.
Find the Right Processor for Your Needs
A little market research goes a long way with finding the optimal BTC processor for your website. Look for the service that offers the lowest transaction fees for your specifications.
Furthermore, check to see that your BTC payment processor of choice supports a payout currency of your choice. If you prefer to keep the funds you receive in BTC, then this isn’t a problem. On the other hand, if you would rather cash out into fiat, make sure you can do so safely and easily.
A final criterion to look at is the processor’s payout frequency. While some providers offer daily payouts, some can take up to a few days to get you the funds. Make sure to read the fine print before settling on a BTC payment processor.
Consider Other Payment Options
If you would prefer not to use a Bitcoin payment processor, there are a few other options to chose from. Custom payment integrations connect directly with your shopping cart, cutting out the need for an intermediary. This requires knowledge of API and some programming, but a knowledgeable developer should implement a solution.
Another option is bypassing the need for a system completely. Asking customers to contact you directly can simplify the process and reduce the technical prowess needed to implement a payment solution.
Be a Bitcoin eCommerce Pioneer.
The crypto market is still in its early stages. With constant improvements in user experience, it’s only natural that millions of users will flock to the market. Be a first-mover and take advantage of Bitcoin adoption today.
I hope this article had made it clear that how to accept bitcoin payment and make purchases. Thank you for reading this article. Stay safe.