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The role of cryptocurrencies in e-commerce
Written by Davies on / Reading time: 4 minutes.
The development of the cryptocurrency industry has opened a range of opportunities in the e-market to reduce transactional fees. However, this approach entails an institutional change in the way payments are done, as well as replacing the control exercised by government entities. In this context, a new trust model is created for the e-commerce sector. We can say that the decentralization of trust has been driven by the disruptive innovation of cryptocurrencies.
But what role do virtual currencies play in e-commerce? We will continue this post with the aim of seeking a constructive answer to this question. Come with us!
What is e-commerce?
It is the process of buying and selling products through electronic means, such as the Internet or mobile applications. This trade includes both online and retail transactions. Over the past few decades its popularity has grown, replacing even the traditional physical stores. E-commerce is open 24 hours a day throughout the week (24/7), an advantage that users will always appreciate.
How cryptocurrencies influence e-commerce
Some have named this relationship as 'the dynamic duo of the internet'. In recent years it has become very clear that e-commerce is not only the present, but it can also be the future. The ease of searching for products and purchasing them from your home and buying them with a single click is a great advantage. However, the websites of these online stores are acquiring a new variable in their payment methods: cryptocurrencies.
These digital media use strong cryptography to secure transactions, control and verify asset transfer. In this way, cryptocurrencies have become a secure alternative to traditional money. So much so, that "some studies suggest that 50% of the world economy by 2025-2027 will be covered by digital currencies, further emphasizing its importance for the future of business transactions."
Virtual currencies and e-commerce have one common point: they are key to the future. That is why, little by little, they are creating a synergy that is seen in companies that are already adopting cryptocurrencies as a form of payment. Although the process is being slow, more and more companies are opting for the advantages of blockchain technology to develop solutions based on this type of trading.
The impact of bitcoin on e-commerce has been significant. It has opened a new way to make transactions and purchases with a universal unique value. In short, cryptocurrencies have become one more part of the e-commerce process.
Initiatives to integrate virtual currencies into e-commerce
"CoinPayments takes cryptocurrencies to traditional e-commerce as the proud main sponsor of Europe's largest e-commerce event: InternetRetailing EXPO 2019 in England," according to CriptoNoticias. The goal of CoinPayments is to promote the commitment to cryptocurrencies in the e-commerce space. In this way, it makes available to merchants a safe, economical and unlimited form of payment for e-commerce platforms.
Advantages of integrating cryptocurrencies into your online store
Some of the benefits that cryptocurrencies are experiencing on the e-commerce side are:
- A blockchain system prepared to ensure the security of any telematics operation that is done.
- All payments are made through an escrow account, so that the money does not reach the seller until the buyer does not verify that the purchase has been made under the right conditions.
- Brings reliability and veracity to transactions and improves the user experience.
- Greater ease, comfort and speed to make purchases.
This system is exceeding the expectations of users in matters of confidentiality, security and guarantee in the processing of data in the online universe. Thus, we can say that nowadays it is possible to pay with cryptocurrencies in e-commerces.
They have already become a trend in payment methods. Large companies like Amazon are investing time and money in adapting their platforms to allow payment with these currencies.
Latin America is also into this initiative. We saw it recently in a news story from donweb: "The cryptocurrency is introduced for the first time through an agreement carried out by the firms Avalancha.com, Bitpagos.com and Bitex.la. The last two will allow the e-commerce site to offer its users the possibility to pay for their online purchases with the virtual currency".
Is this the couple of the future? We will share with you every week news about the sector in our blog.