Blockchain and Retail: 5 Important Cryptocurrency Tips for Retailers
As the retail sector keeps on growing and expanding around the world, business leaders need to keep up with the latest trends and capitalize on emerging opportunities. There are many factors, trends, and technologies that are transforming the retail business, and spotting and investing in these opportunities can help retail brands stand out online and offline, build their competitive edge, and ensure long-term growth.
Of the most transformative technologies, we have the blockchain and the cryptocurrencies that are mined and exchanged there. The cryptocurrency industry has been growing rapidly over the last decade, and nowadays many retailers across the globe are accepting bitcoin and altcoins as a legitimate form of payment to improve their cash flow and promote their brands in the crypto community.
There are many benefits to accepting cryptocurrency as a retailer nowadays, but is it the right move for your brand? Let’s take a look at some crypto tips and facts that will guide you towards the best solution for the future of your retail business.
Cryptocurrency is transforming retail
Cryptos and the blockchain are no longer reserved for the versed in the world of all things digital. In fact, bitcoin and a number of other cryptocurrencies have already entered the mainstream. Add to that, more digital wallets are now widely available to everyone who wants to participate in trading or mining, making it easier for people from all walks of life to use these currencies safely.
As a result, buyers are no longer wary of using bitcoin, nor are they unfamiliar with the technology of the blockchain that makes it possible. While your target customers are catching up and quickly mastering all things related to the blockchain and the bitcoin, your business cannot afford to fall behind – more people will ask you if and when do you plan to accept such payments, anyway.
Enhanced payment security
No matter how far we move forward with the selection of products or the way in which we deliver them, one aspect of online sales remains the crucial determining factor for the buyer to choose one brand over another: security. To be more specific, cybersecurity represents a crucial question for ecommerce businesses, as hackers are keeping up with the latest tech and innovations to come up with more effective ways to steal data.
The blockchain’s built-in security protocols prevent any kind of interference with your transactions. That fact alone makes cryptocurrency exchanges and bitcoin purchases more secure than any other available option.
Satisfying a growing customer demand
Bitcoin might have been an obscure currency once upon a time, but today, this and many other altcoins are taking over the world by storm. More people are actively investing in bitcoin mining equipment in order to accumulate more cryptocurrencies to trade and buy with, making them a perfect target demographic for merchants. The availability of the hardware and its advanced features make this practice increasingly popular among people of all generations.
Naturally, as a retailer, you need to be ahead of the curve and spot emerging trends such as this one to appeal to your own target audience and expand your reach. More people are rapidly using bitcoin as their go-to payment currency, so the retailers that embrace this preference will become leaders in their retail sectors.
Capitalizing on lower transfer fees
Financial institutions, including traditional banks, credit card companies, as well as digital banks emerging nowadays in growing numbers all strive to earn a profit from every transaction that takes place. After all, you, as the merchant are leveraging the built-in security protocols of their platforms and accounts, meaning that you should very well pay for such a high level of service. However, the blockchain-based world of cryptocurrencies requires significantly lower transaction fees.
Based on the size of the transaction and the level of business of the network, the platform will calculate a fee. This fact alone makes it easier for merchants to accept cryptocurrencies as a payment method, since they don’t need to worry about the fees being as exorbitant, and the likelihood of pushing customers away because of that very same fact.
No fraudulent chargebacks
Every retailer running a business of a certain size and reach has encountered the infamous chargebacks. The moment when a customer falsely revokes their payment claiming the product has arrived damaged or hasn’t arrived at all is a dreaded one for every online seller. Alas, credit card companies have stringent policies in place protecting the customer, and they will almost exclusively side with that customer when a chargeback is requested.
With the blockchain as your transaction channel – no fraudulent chargebacks are possible, which can safely be called a dream come true for retailers. Bitcoin-based transactions don’t require a third-party institution to process it, so only verified, trusted users get to exchange the funds, and companies appreciate the shared responsibility. In some, more complex transactions related to cryptocurrencies and third-party platforms, there is a limited possibility for a chargeback, so it’s important to clearly outline your own purchase policies when introducing bitcoin.
From expanding your own financial investments with the help of crypto, to elevating transaction security thanks to the blockchain, the world of cryptocurrencies shows immense potential for retailers who are bold enough to take this leap. Although the volatile nature of the cryptos is still a cause for caution, the overwhelming perks of using cryptocurrencies such as bitcoin that are well established can create that edge you’re looking for.
Jolene Rutherford. Digital marketing specialist. technivorz.com