So far, every time we made online purchases, how did we pay? Obviously, from the net banking service, credit / debit cards, receipts etc. And now with the evolution of Bitcoin and cryptocurrencies, do you think the use of these for e-commerce payments will be more beneficial? Will there be any cons that will eliminate the professionals?
Because cryptocurrencies are not yet implemented for online full-scale e-commerce payments, it is therefore difficult to speculate on what it can or can not do. In an e-commerce conference recently held in Cluj-Napoca, TeCOMM among other issues of debate, was the question of payments in e-commerce. The debate focused on issues related to consumer confidence over current payment methods, their flaws, frauds and the extent to which they were influencing.
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It is not surprising that Blockchain application development technology through Bitcoin or other cryptocurrencies can affect e-commerce. A few months ago, one of the largest cryptocurrency payment providers, CoinPayments declared an alliance with Shopify to assist payments of over 300 cryptocurrency payments for online purchases. Here is a list of the important reasons behind the cryptocurrency payments that make up the future of e-commerce.
A reduced transaction burden:
Both retailers and consumers can make the most of cryptocurrency transactions because the fee charged to a transaction will reduce. For example, the highest Bitcoin payment payer, BitPay, charges a mere 1% payment commission for bitcoin payments. Contrary to this, credit card companies charge more than 3% for processing. These fees can further add. While there are other blockchains that ignore transaction fees for the normal operation, without compromising the security of the e-commerce platform network.
Increased transaction speed:
Sometimes it becomes irritating when a message flashes during purchase of your most desired product online saying that there is some problem with the platform or bank and therefore the transaction does not it can be completed. With cryptocurrency, the speed of the transaction will increase due to the removal of intermediaries and the distributed nature. There will not be a single server but the load will be reduced and processing will be much faster.
The major advantage linked to cryptocurrency payments (online) is that there is no involvement of any mediator or third parties. Bitcoin technology is planned in such a way that the payment by the sender is direct to the receiving party. Today payments go through the e-commerce platform and banks to the seller but with cryptocurrency, the payment will be received instantly and securely without any intervention by the e-commerce platform or the bank or any financial institution.
One of the major concerns of online payments that consumers have is the fear of fraud that results in theft and loss of money. But with the cryptocurrency and its characteristic of smart contracts, it is possible to avoid such frauds. Cryptographic payments are irreversible and secure, because all the transactions that take place are recorded on the blockchain register. While the funds are locked in a public-key cryptosystem. Along with this, the way in which payment is made in the decentralized blockchain provides a benchmark on cryptography which is a possibility in millions of breaking.
Motivation with awards:
When we perform online e-commerce transactions, we hardly receive rewards or those provided by the e-commerce platform are off the mark because they ask us to buy more for a specific "big" amount; burning a hole in the pocket. But on the contrary, e-commerce platforms that trade in cryptocurrencies offer reward programs. As some platforms provide their token consumers to save on transaction fees, earn additional tokens, reimbursements etc. They also offer prizes by creating new blocks with coins inside.
International payments for e-commerce:
When we buy online from a different country, a high tax is applied and some checks are also carried out before the bank processes the payment. Or you have to keep a credit card from that country to facilitate payment, but this is still a grueling process. With cryptocurrency payments, it will be facilitated because the checks will be made in advance and only then will the transaction take place. Furthermore, due to its peer-to-peer nature, the money will be transferred directly and immediately to the seller.
E-commerce is one of the fastest growing industries and can grow more by making online shopping as easy as cake; for e-commerce businesses to attract more consumers. Cryptocurrencies can turn this into reality because they have no flaws and barriers. It is true that this will take time to make more and more people use this technology for online payments.
Some of the subway hubs use Bitcoin in the form of payments, Newegg is another e-commerce platform that offers a diverse variety of products and accepts Bitcoin for payments. I think we are not very far from using a generalized cryptocurrency payment system.