Bitcoin in eCommerce: Pros, cons and how to implement it

Until fairly recently, cryptocurrency was nothing but an intriguing matter.

In the last few years, however, it’s gained popularity and has even made it to eCommerce. It now seems that the payment methods we’re familiar with (card payment, PayPal, cash on delivery, etc.) are incorporating Bitcoin payments as well.

So, if you don’t want to fall behind this trend, then this post is for you.

You’re about to learn:

• How cryptocurrency works in eCommerce.
• Advantages and drawbacks of incorporating this payment method.
• Some examples of stores that have started to take Bitcoin payments.
• Ways in which you can implement it.

Are you ready to be a part of the future of eCommerce?

Let’s do it! 😉

👉 How cryptocurrency and Bitcoin work in eCommerce

You most likely have already heard about this new trend.

 But in case you don’t know yet how it works, we’ll start by breaking down its basic concepts.

Cryptocurrency is a ‘digital currency’ created with blockchain —a cryptographic system of blocks used to make electronic transactions.

There are two main concepts in this definition:

• Digital: it refers to currency that only exists online and has no physical equivalence. However, you can exchange it for regular currency; that is, exchanging Bitcoins for euros, dollars or any other currency.
• Blockchain: this programming language that supports cryptocurrency allows to record all transactions that have been made using such cryptocurrency. Therefore, there’s practically no room for scams or frauds.

Below we’ll examine these characteristics in depth along with the benefits they might bring for eCommerce stores.

In case you want to learn more, here’s a video briefly explaining how Bitcoin works —the most used cryptocurrency.

✅ Which are the best-known cryptocurrencies?

Most times, the terms ‘Bitcoin’ and ‘cryptocurrencies’ are used interchangeably, but this is not the case.

Bitcoin is a type of cryptocurrency. Specifically, the first one that came out. It is nowadays the most accepted and best known one.

Of course, it is not the only one.

Bitcoin was followed by many other cryptocurrencies that have been making their way.

• Ethereum.
• Litecoin.
• BNB.
• Dogecoin.

Each of them has its own set of characteristics and has a particular value.

However, we’ll focus on Bitcoin since it is the most popular one for online payment.

👉 Pros and cons of accepting Bitcoin payments in eCommerce stores

Yes, Bitcoin is trendy… But the key question is “Why should I bother implementing it in my store?”

To answer this, we’re about to tell you what its pros and cons are so you can have all the information at hand and decide whether it’s convenient or not for you.

✅ Advantages of taking Bitcoin payments

Let’s start with the bright side.

➡️ Geographic restrictions disappear

Does your eCommerce sell worldwide?

If the answer is yes, then you’re already familiar with currency exchange fees and the cost of international transactions.

Well, cryptocurrencies are not regulated by any government or central bank.

That means that one Bitcoin is worth the same anywhere in the world. That way, your customers won’t have to worry about being in Europe, America or Asia because their money will always be worth the same.

Obviously, expenses related to cryptocurrency transactions do remain.

➡️ A simple payment process that reduces abandoned carts

Payment is one of the critical stages of checkout.

Think of all those carts that have been abandoned because users didn’t have at hand their card information or because you ask for a lot of information and the process takes too long.

The good thing about cryptocurrency is they speed up payment a great deal.

The only thing a user needs to do to pay is scan a QR code with their smartphone. There’s no need to type in extra information, confirmation codes or log in, the way some banks require.

➡️ Greater security thanks to blockchain

The blockchain technology that supports Bitcoin makes it a safer payment method, both for you and the customer.

How?

• It’s impossible to hack: although cybersecurity has evolved greatly in the last few years, the risk when making online transactions is never null.

This is where Bitcoin and cryptocurrencies make a difference. Blockchain technology makes it virtually impossible to track customers’ financial information (for example, hackers won’t be able to access your customers’ wallet and steal the rest of their cryptocurrency).

• It reduces fraudulent transactions: Bitcoin payments can’t be canceled once they’ve gone through, so it avoids potential frauds by people who cancel payment once they’ve placed an order.

So this is how cryptocurrencies can help you optimize your eCommerce store’s security.

➡️ There’s a growing number of people willing to pay in cryptocurrency

A safer, more comfortable payment, and a single global value… 

There are many reasons why cryptocurrencies are gaining more followers.

If you offer this payment method in your eCommerce but your competitors don’t, it’ll be much more likely that this segment will prefer to buy from you. In other words, accepting cryptocurrency can be a way to stand out.

But let’s take it up a notch and see into the future.

It all indicates that in the next few years, cryptocurrencies will become even more relevant. In fact, it seems they will be a fundamental aspect of the renowned virtual world, metaverse (which we cover in depth in this post).

✅ Drawbacks of cryptocurrencies in eCommerce

Since nothing can be perfect, let’s see the cons of this payment method.

➡️ Its value fluctuates constantly

Surely, you’ve heard that one of the main disadvantages of digital currencies is how unstable they are.

How does that affect you?

It may be the case that when you feel like exchanging Bitcoin to another currency, the rate won’t make it as profitable as you expected it to be. For example, on a given day the Bitcoins you’ve received as payment are worth €1,000 and a few weeks later they’re worth €800 (this is just an example).

In these cases, what you can do is wait for the value of Bitcoin to increase and exchange it to a different currency (in case that’s what you prefer).

➡️ They’re not allowed in certain countries

Certain countries, such as China, have forbidden the use of Bitcoin.

This is not a big inconvenience because if you sell in these countries, your customers could still access all the traditional payment options. But it’s good to know about it.

👉 Examples of eCommerces that accept cryptocurrency payment

“Okay, this is all great, but really… Are there any businesses that accept Bitcoin payments?”

Yes. In fact, there are many businesses that have implemented this payment method.

Have a look at some of these famous brands:

• Lush: this famous natural cosmetics company uses BitPay to accept Bitcoin payments.
• Expedia: this big travel agency allows Bitcoin payment via Coinbase.
• Starbucks: since a few years ago, it allows customers to pay for coffee through their own app, using payment platform Bakkt.

Last, there’s Overstock (a domestic furniture eCommerce) which started offering their customers this payment method.

👉 How to accept cryptocurrency payments in your eCommerce

Let’s say you’re now interested in digital currencies and are considering incorporating them in your online store checkout.

How could you do this?

The procedure is basically the same as with any other method: you have to integrate a specific payment gateway for accepting cryptocurrencies.

How you do this will entirely depend on the CRM you have.

For example, in Shopify you only need to set an alternative payment method and enable one of the following external payment gateways:

• BitPay.
• Coinbase.
• CoinPayments.

On other CRMs, you can install a plug-in such as Coingate’s (valid for WooCommerce, Magento, PrestaShop, etc.) or CoinPayments’.

Easy, right? 😉

👉 You’re up now: will you accept Bitcoin payment in your eCommerce?

You’ve already seen what’s behind Bitcoin in eCommerce.

Even though there are some inconveniences, its advantages are far greater.

Besides, it all looks like cryptocurrencies are here to stay and users will be increasingly demanding this payment method. So, this could be a good opportunity for you to anticipate what’s ahead and outrun your competitors.

Are you ready to take the leap to crypto-eCommerce? 😉