Crypto

This is how Satoshi Nakamoto envisioned how crypto works

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Satoshi Nakamoto, the creator of Bitcoin (BTC), originally envisioned cryptocurrency as a means of payment between two people. This is a key reason why blockchain, the underlying technology of the crypto ecosystem, has found its best use cases in the payments sector.

Blockchain-based payment solutions, widely known as crypto payments, enable a truly global financial network. Cryptocurrencies are free from geographical restrictions and allow seamless transactions between different regions around the world. The robust technology and potentially minimal fees introduced with cryptocurrency make this type of payment ideal for transaction-intensive digital sectors such as online shopping or e-commerce.

While blockchain-based payments offer significant benefits to the e-commerce industry, online merchants have taken a wait-and-see attitude towards crypto adoption. The main concerns revolve around the sophisticated nature of these digital assets, as well as the risks involved in adopting a new form of money. Crypto payment integration has also been a confusing topic for the e-commerce industry as it typically requires a high level of technological expertise.

However, the looming global recession forecast by both financial experts and government officials is forcing every industry to be more aggressive when it comes to finding new revenue streams to stay afloat in 2023.

Economic turbulence calls for new perspectives

Despite the meteoric rise of ecommerce platforms like Shopify, which reported combined sales of more than $3.2 billion in 2021, the economic uncertainty of 2023 is forcing ecommerce merchants to find new ways to attract customers. Market researcher Statista expects an annual decline in e-commerce sales in its latest Digital Market Outlook report, with industry experts comparing current numbers with pre-COVID-19 numbers. The global recession predicted for 2023 offers e-commerce retailers the perfect opportunity to try and apply new strategies to attract new waves of customers.

A 2022 report estimated that more than 10% of global internet users between the ages of 16 and 64 — a demographic perfectly suited to the e-commerce industry’s target audience — own some form of cryptocurrency. Another report counts more than 320 million crypto users worldwide, positioning crypto users as an attractive audience for any industry looking to see organic growth.

Low Hanging Fruits for E-Commerce

As crypto users actively seek new ways to use their digital assets in their everyday lives, enabling crypto payments for this shopper-ready audience seems like picking low-hanging fruit. Finally, crypto payments offer much faster processing and lower costs per transaction, making them a superior alternative to traditional payment methods – both technically and financially.

Thanks to the borderless nature of crypto and the technology behind it, seamless cross-border payments have become a viable option for online shopping platforms. With over 2 billion people left without access to the banking system, crypto payments provide a key entry point into e-commerce for people in multiple markets.

However, despite the benefits of accepting crypto payments, the technical aspect is still a deterrent for online merchants. With many different cryptocurrencies, blockchain infrastructures and a multitude of crypto wallets on the table, integrating crypto payments into an online shop for the first time presents a technical hurdle for many shop owners.

However, as technology evolves and crypto adoption continues to grow, adding crypto payments to online stores will move from multi-layered try-and-fail integrations to simple plugins built specifically for ecommerce platforms.

One such solution is being developed by crypto payment processor 8Pay for major e-commerce platform Shopify. 8Pay’s permissionless design is easily configurable from Shopify’s plugin dashboard and is powered by smart contracts that offer a new set of features for crypto assets. As a result, users can enjoy single, fixed recurring, variable recurring and on-demand payments, track balances and manage payments through the 8Pay web or mobile apps at the click of a button.

Completing payments through 8Pay is similar to traditional portals like PayPal, but it’s done over a decentralized network. When a user clicks an embedded button, visits a short URL, or scans a QR code, they are redirected to an 8Pay checkout, connect their MetaMask wallet, verify the process, and sign the transaction. Everything else is handled automatically.

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Untapped potential for online retailers

The integration of crypto payments into online shopping not only generates new revenue streams for e-commerce merchants, but also creates a new way for crypto owners to spend their wealth on everyday necessities. As with all other methods of using cryptocurrencies in more traditional aspects of life, building a presence in e-commerce also helps with wider adoption of crypto.

Accompanied by easy-to-use integration solutions, crypto payments would help the e-commerce industry weather the uncertainty of the upcoming global recession with a brand-new audience, secure infrastructure, and lower transaction costs.

As crypto payments become more accessible with new tools and solutions for both merchants and crypto holders, the e-commerce industry is likely to find an untapped market in the crypto ecosystem.

Disclaimer. Cointelegraph does not endorse any content or products on this site. While we aim to provide you with all the important information we are able to obtain, readers should do their own research before taking any action regarding the company and take full responsibility for their decisions, and this article can nor should it be considered investment advice.

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