Businesses have either heard about bitcoin as an eliminator of intermediaries while processing any payment or as an investment vehicle. In both ways, bitcoin can be a significant help to online and land-based businesses.
The fundamental reason BTC is an attractive monetary system that tends to be highly advantageous for businesses is the decentralization of the entire bitcoin ecosystem. As long as the bitcoin payment processing is done decentrally, the money going through transactions can be processed with the utmost security and privacy. If you are a Bitcoin investor, you deserve to know that Bitcoins are now also available from the Volksbank.
Perks bitcoin can provide to e-commerce:
1. Elimination of intermediaries- All the transactions can happen directly between the seller and buyer. There is no requirement for any intermediary to process a bitcoin transaction. It eliminates the charges an online business needs to bear for processing payments, cuts down the time taken for processing payments, and reduces the chances of fraud.
2. Low Transaction Fees- Bitcoin is a distributed digital currency, and hence there are no costs incurred by intermediaries for processing transactions. It leaves more money for businesses to operate their business smoothly and successfully.
3. Higher Transaction Speed- It is agreed upon that bitcoin transactions can be processed faster than regular online payments. It makes bitcoin a better option for businesses that bulk sell goods and services.
4. Low Records retention time– Bitcoin payments are easily traceable for both the seller and the buyer to know about the history of payment processing. It means that merchants need not keep long records of their details dealing with customers and can also have an updated list of their customers who have made payments through Bitcoin.
5. Higher security- Bitcoin transactions processed over open networks are utterly untraceable by anyone, even if any hacker gets access to these networks.
6. Ability to accept cross-platform payments- Due to the decentralized nature of bitcoin, businesses can accept payments from their customers no matter what platform they use for transactions. It is beneficial for businesses as it helps them reach more potential customers.
7. A more substantial customer base- Accepting bitcoin payments can add more value to a business as it lets people from around the world make purchases from them. In addition, customers who want to make payments with bitcoins are already aware of this currency’s value and tend to buy more than usual.
Steps to accept bitcoin on an eCommerce site:
1. First thing that merchants should think about is the fact that bitcoin payments and conventional online payments cannot be processed at the same time. It is due to the nature of bitcoins which can only have a use case for peer-to-peer payment. Ideally, a merchant needs to decide on one or other of these options before starting with bitcoin payment acceptance.
2. If a business decides to accept bitcoins, it must make sure that they are registered on an exchange through a website or an app. After this, they need to get the wallet system installed on their website where bitcoins will be secure, and transactions will be there securely.
3. Once bitcoins are in the wallet system, they need to decide how to process them to keep the money flowing. Options like accepting bitcoins directly from customers or adding a custom code on a receipt that can be redeemed using bitcoins can be considered.
4. If a business wants to accept payments and add value to their business, they should think about ways of making customer loyalty programs that can enhance their sales regularly through bitcoin payments. It will help them promote themselves and make more profits for the business by keeping customer loyalty more robust over time.
5. Accepting bitcoins can also help businesses take their business to the global level. Online payments in bitcoins are being accepted worldwide without any regulator or central authority. It means a business can use this opportunity and exchange its local currency with bitcoins anytime it wants.
6. Once the process is over, it is essential to manage customer data to keep things updated and handy when bitcoin payments are enabled on the website.
7. A regular check on all transactions processed through an e-commerce website is essential to ensure that bitcoins are processed as per expectations in terms of value, safety, and security.
Focusing on the international marketplace
Bitcoin is a global currency, and hence a business should decide whether they want to process transactions in their own country or all around the world. There are two ways a business can choose to do the transactions.
One is accepting payments directly; the other is through payment gateways like PayPal, credit cards, and debit cards. Since each eCommerce site differs from others and there are various methods of payments for different businesses, merchants should think about their choice carefully to process payments effectively.
Read also: How to trade bitcoin using an android phone?