The traditional cash-based economy is not yet out of date, but this new wallet on your phone is surely changing the money movement of spendings. The proliferation of hand-held computer i.e. smartphones have revolutionized the eCommerce market and its impact cannot be overlooked upon.
A lot of eCommerce development companies are adopting different payment methods and Cryptocurrencies are coming into the radar of many. Before jumping on to the crypto-bandwagon, let’s find out what is Cryptocurrencies?
These digital assets have emerged out as a popular challenge to traditional banknotes. Cryptocurrencies are virtual currencies used to perform online transactions by eliminating the involvement of the third party. They use encryption techniques to establish the unit’s value and verify the transfer of funds.
You may ask, Why eCommerce?
There is nothing that is left behind in the world that escapes from the internet. According to Statista.com, the eCommerce is expected to grow US$4.88 trillion by 2021. With this, it is expected that the crypto units could be the sixth largest circulating currencies in the world.
People are searching to find out a replacement to debit cards and credits cards and alternative payment methods(Branded payments) is on the top preference. APMs include GooglePay, ApplePay, WebMoney, AfterPay, ZiMay and more.
The hassle of depositing money at the purchase transaction is almost simplified.
According to a study, there are more than a billion people worldwide who want to purchase online but can not take advantage as the banking systems are underdeveloped.
Cryptocurrencies bridges this gap between the eCommerce sites and the people without bank accounts.
No third party involvement, no other intermediaries, the only thing that is required is an internet connection. You can use digital coins as a means of payment.
Cryptocurrencies offer following advantages during online transactions:
- Allows one-to-one transactions;
- Reduces fees of transactions;
- Replace the centralized bank system;
- A greater level of autonomy to the merchants.
Cryptocurrencies only charge around 0.3 % benefiting the retailers and the shoppers. It also offers a greater level of privacy where you need not to disclose the private details to the third party.
In a broader aspect, it offers a new level of protection against counterfeit and fraudulent purchases.
We need a working platform that allows a seamless transaction between the buyer and the seller. Cryptocurrencies suffice this need of the eCommerce development. We need to believe strongly in the digital transaction to make this as a future of eCommerce and other online transaction.