The Importance of Crypto Payments in Retail and E-commerce

For any business operating an online store, optimising payment methods is essential. Customers are likely to abandon their purchase if they can’t use their preferred payment solution. Crypto payments are quickly gaining prominence for their efficiency and business advantages. Let’s learn more.

How payment options can impact consumer behaviour

While it can be easy to focus on the product/service or website design, payment methods are among the most crucial aspects to consider when optimising an online store. When people check out using their preferred payment method, they enjoy a more positive experience and are likely to return. 

As stated in a PYMNTS article, 77% of shoppers say they would abandon their shopping carts if a store didn’t offer their desired payment options. This highlights the impact on customer behaviour. With crypto payments becoming increasingly popular, businesses can significantly benefit from their integration. 

The benefits of crypto as a payment method

While traditional payment methods like credit/debit cards processed by Visa or Mastercard are widely accessible, simple to use, and straightforward to integrate, they’re not perfect. Issues like high fees, chargebacks, and inefficient international transactions can cause substantial problems for businesses. 

According to research into accepting crypto as payment from the US Chamber of Commerce, crypto payments have many notable benefits that could enhance the user experience and a business’s operation simultaneously. Some of the key advantages include: 

Reduced costs

Any business that captures payments must deal with intermediary services like banks, payment processors, and currency converters. Unfortunately, these services all add to operational costs and can eat into profits, leading to higher prices for customers and, subsequently, fewer sales. 

However, by integrating a crypto payment gateway, a business can reduce its reliance on intermediaries, leading to substantial savings. Customers also benefit as they gain more purchasing options, don’t have to pay international banking fees, or cover costs for using non-local payment methods.

Permanent transactions 

One of the most significant risks to small businesses is chargebacks. Traditional payment methods can be exploited easily, with customers able to request a refund for many reasons (like a product not arriving or them not approving the charge) with minimal evidence.

The business has to cover a variable chargeback fee in addition to the refund amount, resulting in extra costs on top of the lost product. Thankfully, there’s a solution. Crypto payments are irreversible and cannot be canceled once confirmed, which is ideal for preventing chargebacks. 

Enhanced efficiency

Regardless of the industry, efficiency is instrumental in any business. It impacts everything from profits to user experience and conversion rates. An inefficient business will offer a subpar service and struggle to compete with more efficient alternatives.

With crypto payment gateways, businesses can improve processing/fulfillment times alongside cutting out intermediaries and saving money. They’re borderless, preventing excess fees and eliminating the need for complex local payment methods, resulting in a superior, more inclusive experience for users.  

Final thoughts

The payment methods an online store offers can drastically impact user retention. Crypto payments are rapidly rising in popularity due to their borderless and efficient nature. Businesses can also benefit significantly, so it could be worth considering a crypto payment gateway solution for your operation.