The cryptocurrency market emerged 10 years ago. But when it all started with Bitcoin back in 2009, nobody believed that it would expand this much. People were tipping each other off about this cryptocurrency on tech forums, spreading the word. A year later, for the first time, Bitcoin was used in a commercial transaction—a man bought two pizzas for 10,000 BTC. The man in question was Laszlo Hanyecz, and his pizza order is now celebrated as a Bitcoin Pizza Day.
Laszlo Hanyecz said he spent 10,000 BTC hoping that one day many people around the globe would use Bitcoin for shopping. And he was right. Bitcoin and other cryptocurrencies are now actively traded worldwide and are used to purchase products online and offline.
But is using Bitcoin as a payment method a good idea for merchants? Bitcoins are most commonly sent via phone. Still, shopping cart abandonment statistics say that the rate of cart abandonment is as high as 85,65% on mobile devices, even though the website traffic on mobile is higher than before. That’s probably due to smaller screens, where users find it harder to enter personal data and credit card numbers. But that’s not the only reason some of the most famous ecommerce stores decided to implement Bitcoin.
Lower Transaction Fees
Banks are continually changing their fees for simple transactions. Yet cryptocurrency has lower transaction fees overall. That also means no account maintenance expenses, no return deposit fees, and no chargebacks. Low fees come in handy for international purchases, where fees can be higher.
Any merchant accepting credit card payments is fully aware of the chargeback costs and the need to satisfy every customer. With Bitcoin, chargebacks are all about the arrangement between the merchant and the customer, since there’s no way for Bitcoin payment to be withdrawn on the customer’s end. That also means fewer chargeback frauds. This way, the merchant can rest assured that they’ll keep their money.
A Wider Pool of Consumers
Enabling Bitcoin or other cryptocurrency payments allows merchants to access a wider pool of consumers and gain the attention of people who didn’t notice their business before. Those can be people who avoid the use of credit cards online, don’t like sharing their private information, or belong to the group of Bitcoin supporters who are happy to see it enabled as a payment method on a website. Simply put, allowing Bitcoin increases market potential.
Ecommerce Giants That Accept BTC
The number of ecommerce stores that accept Bitcoin has grown in the last few years, and they belong to various industries. For example, Etsy (the jewelry industry), AT&T (the service industry), Domino’s Pizza (the food and beverage industry), Cine Multi (the movie industry), and so on.
Many of the ecommerce giants that decide to enable Bitcoin as a payment method can affect the shopping cart abandonment and see a positive result. Bitcoin transactions are straightforward, and there’s not a lot of typing involved, meaning that users can place an order with ease.