Digital currencies like Bitcoin, Dogecoin and Auroracoin, continue to develop and it is vital that businesses take notice and make necessary changes to meet the evolving needs of their customers. Bitcoin, as a prime example, has gained a great deal of media coverage for its growth as it continues to expand into the market.We’ve created this short guide to help you prepare your ecommerce business for a future of Bitcoin.
What is Bitcoin?Similar to PayPal, it provides users with an alternative payment method to traditional options like cash or credit card.
Who is using it?Businesses are slowly starting to accept cryptocurrency payments. Research from the Journal of the Royal Society: Interface show that there is a correlation between the 10,000 per cent increase in Google searches for Bitcoin, and the significant value increase in digital currencies. It is becoming increasingly regular to see ecommerce sites advertising that they accept digital currencies. More recently Dell started accepting Bitcoin, the third largest seller of PCs worldwide.
Why should you use it?
- Personal information is kept secure and never shared.
- No transactions/foreign exchange fees make it a cheaper option than bank transfer.
- No security checks or regulations, just wallet security, also knock down the price.
- Digital currencies are accessible anywhere in the world, provided an internet connection.
- It is non-reversible and so businesses can avoid returns.
- It hasn’t been widely adopted yet.
- The value is easily influenced making it a volatile currency option.
- There is no (easily discoverable) trail of transactions for retailer, though this creates a high level of security.
- The wallet can be accessed easily if someone gets access to the private key; undermining the otherwise high level of security.
Tell your customersBefore you accept, it is vital that your customers are aware of this payment option. You can make this information available to your customers by adding a Bitcoin badge to your site. However, it could be more beneficial to your business and customers if you include an introduction to the service, similar to Dell’s announcement. What’s more, adding a description will meet the needs of your customers who aren’t familiar with virtual currencies. Merchants Solution As Bitcoin opens your e-commerce site up to customers worldwide, being able to accept a range of currencies is important. We’d suggest a merchant solution such as:
- There is no evidence to prove you received the payment.
- The nature of the transaction is disguised.
- How you handle transactions.
- How you accept transactions.
- How you pay tax.
Share this story