As the retail sector continues to grow and expand worldwide, business leaders need to stay updated with the latest trends and capitalize on emerging opportunities.
There are many factors, trends, and technologies that are transforming the retail business, and detecting and investing in these opportunities can help stand out online and offline with the use of cryptocurrencies in retail, build competitive advantage, and ensure long-term growth. Among the most transformative technologies, we have blockchain and the cryptocurrencies mined and traded on it.
The cryptocurrency industry has grown rapidly in the last decade, and today many retailers worldwide accept bitcoin and altcoins as a legitimate form of payment to enhance their cash flow and promote their brands within the cryptocurrency community.
Today, accepting cryptocurrency as a retailer has many benefits, but is it the right move for your brand? Let's take a look at some tips and facts about cryptocurrencies that will guide you towards the best solution for the future of your retail business.
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5 Important Tips about Cryptocurrencies in Retail
It is well known that one of the functions of cryptocurrencies is to act as a means of payment. However, the scope and characteristics of the phenomenon, particularly the use of cryptocurrencies in retail, have never been clear. Cryptocurrency is one of the key topics that retail merchants will encounter in the digital world in the current decade.
The acceptance or rejection of cryptocurrencies depends on each merchant's product portfolio, access to usual payment methods, and willingness or desire to partner with cryptocurrency acceptance. To dispel some doubts, below are 5 tips to consider for using cryptocurrencies in retail.
1- cryptocurrency is transforming retail commerce
Cryptocurrencies and blockchain are no longer reserved for the tech-savvy individuals in the digital realm. In fact, Bitcoin and other cryptocurrencies have already entered the mainstream.
Furthermore, there are now more widely available digital wallets for anyone who wants to engage in trading or mining, making it easier for people from all walks of life to use these currencies securely.
As a result, buyers no longer hesitate to use Bitcoin, nor are they unfamiliar with the blockchain technology that makes it possible. While your target customers are catching up and quickly mastering everything related to blockchain and Bitcoin, your company cannot afford to lag behind; after all, more people will inquire whether you plan to accept such payments and when.
2- payment security update
No matter how much we advance with product selection or how we deliver them, one aspect of online sales remains the crucial determining factor for buyers to choose one brand over another: security.
To be more specific, cybersecurity poses a crucial question for e-commerce businesses, as hackers stay up-to-date with the latest technologies and innovations to find more effective ways to steal data.
The built-in security protocols of blockchain prevent any type of interference with your transactions. That fact alone makes cryptocurrency exchanges and bitcoin purchases safer than any other available option.
3- Meeting the growing demand of customers
Bitcoin may have once been a dark currency, but today, it and many other alternative coins are taking the world by storm. More people are actively investing in Bitcoin mining equipment to accumulate more cryptocurrencies for trading and purchasing, making them a perfect demographic target for merchants.
The availability of hardware and its advanced features make this practice increasingly popular among people of all generations. Naturally, as a retailer, you must stay ahead of the curve and identify emerging trends like this to attract your own target audience and expand your reach.
More and more people are quickly adopting Bitcoin as their payment currency, so Cryptocurrencies in Retail are embracing this preference, which will make them leaders in their retail sectors.
4- taking advantage of the lower transfer fees
Financial institutions, including traditional banks, credit card companies, and the increasingly numerous digital banks emerging today, strive to profit from every transaction that occurs.
After all, as a merchant, you are leveraging the built-in security protocols of your platforms and accounts, which means you should pay for such a high-level service. However, the blockchain-based world of cryptocurrencies requires significantly lower transaction fees.
Depending on the transaction size and the network's business level, the platform will calculate a fee. This fact alone makes it easier for merchants to accept cryptocurrencies as a payment method, as they don't need to worry about fees being so exorbitant and the likelihood of driving customers away because of it.
5- No fraudulent chargebacks
All retailers handling a business of a certain size and scope have encountered the infamous chargebacks. The moment when a customer falsely reverses their payment claiming that the product arrived damaged or did not arrive at all is feared by all online sellers.
It should be noted that credit card companies have strict policies that protect the customer, and they will almost exclusively side with that customer when a chargeback is requested. With blockchain as your transaction channel, fraudulent chargebacks are not possible, which can safely be called a dream come true for retailers.
Bitcoin-based transactions do not require an external institution to process them, so only trusted and verified users can exchange funds, which is why businesses appreciate the shared responsibility.
In some more complex transactions involving cryptocurrencies and third-party platforms, there is a limited possibility of chargebacks, so it is important to clearly define your own purchase policies when introducing Bitcoin.
The most popular cryptocurrencies among consumers
70.4% of crypto consumers find it appealing to purchase goods using cryptocurrencies. Meanwhile, two-thirds of people consider cryptocurrencies to be a normal means of payment. Specifically, 68% believe they have compelling reasons to pay for products or services with cryptocurrencies.
This percentage of people uses cryptocurrencies because they believe they are the future of payment systems. Around 57% consider it a safer system than traditional payment systems tied to banks and financial companies, and again, around 57% are against currency control.
Then there are cases where the use of cryptocurrencies has become almost indispensable, such as in countries with struggling economies where the local currency is subject to significant value fluctuations.
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