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Presented by 8Pay

Satoshi Nakamoto, the creator of Bitcoin (BTC), originally envisioned cryptocurrency as a form of payment between two people. This is one of the main reasons why blockchain, the underlying technology of the crypto ecosystem, has found its best use cases in the payments industry.

Blockchain-based payment solutions, widely known as crypto payments, enable a truly global financial network. Cryptocurrencies are detached from geographical restrictions, allowing seamless transactions between different regions of the world. The robust technology and potentially minimal fees introduced with cryptocurrency make this type of payment an ideal choice for transaction-intensive digital industries such as online shopping or e-commerce.

While blockchain-based payments offer significant benefits for the e-commerce industry, online merchants have taken a wait-and-see approach when it comes to accepting crypto. The main concerns revolve around the sophisticated nature of these digital assets as well as the risks associated with adopting a new form of currency. Integrating crypto payments has also been a confusing topic for the e-commerce industry, as it typically requires a high level of technological expertise.

However, the impending global recession predicted by both financial pundits and government officials is forcing every industry to be more aggressive in finding new sources of revenue to stay afloat in 2023.

Economic turmoil calls for new perspectives

Despite the meteoric rise of e-commerce platforms like Shopify, which has enjoyed more than $3.2 billion of total revenue in 2021, the economic uncertainty of 2023 is pushing e-commerce merchants to find new ways to attract customers. Market researcher Statista waits an annual decline in e-commerce revenue in its latest Digital Market Outlook report, with industry experts comparing current figures with pre-COVID-19 figures. The global recession predicted for 2023 presents the perfect opportunity for e-commerce merchants to try and adopt new strategies to attract new waves of customers.

A 2022 report estimates that more than 10% of global internet users between the ages of 16 and 64 – a demographic that fits perfectly with the target audience of the e-commerce industry – own some form of cryptocurrency. another report account over 320 million crypto users worldwide, positioning crypto users as an attractive audience for any industry looking to grow organically.

Fruit at your fingertips for e-commerce

As crypto users actively search for new ways to use their digital assets in their daily lives, enabling crypto payments for this ready-to-buy audience seems like a low-hanging fruit pick. After all, crypto payments offer much faster settlements as well as lower costs per transaction, being a superior alternative to traditional payment methods, both technically and financially.

Thanks to the borderless nature of crypto and its underlying technology, seamless cross-border payments have become a viable option for online shopping platforms. With over 2 billion people without access to the banking system, crypto payments are a vital entry point into e-commerce for people in multiple markets.

Yet, despite the benefits of accepting crypto payments, the technical aspect remains a deterrent for online merchants. With many different cryptocurrencies, blockchain infrastructures, and a wide variety of crypto wallets on the table, integrating crypto payments into an online store for the first time poses a technical hurdle for many store owners.

However, as technology develops and crypto adoption grows at a rapid pace, adding crypto payments to online stores will shift from multi-layered integrations, trial and fail, to simple plugins specifically developed for e-commerce platforms.

Such a solution is developed by the crypto payment processor 8Pay for the leading Shopify e-commerce platform. Easily configurable from Shopify’s plugin dashboard, 8Pay’s permissionless design is powered by smart contracts, delivering a new range of functionality for crypto assets. As a result, users can enjoy one-time, fixed recurring, variable recurring, and on-demand one-click payments, track balances, and manage payments through 8Pay web or mobile apps.

Making payments through 8Pay is similar to traditional portals like PayPal, although they operate on a decentralized network. When a user clicks an embedded button, visits a short URL, or scans a QR code, they are redirected to an 8Pay cashier, connect their MetaMask wallet, review the transaction, and sign the transaction. Everything else is handled automatically.

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Untapped potential for online merchants

Integrating crypto payments into online shopping not only generates new revenue streams for e-commerce merchants, it also creates a new way for crypto holders to spend their assets for their day-to-day needs. As with all other methods of using cryptocurrencies in more traditional aspects of life, establishing a presence in e-commerce also contributes to wider adoption of crypto.

Accompanied by user-friendly integration solutions, crypto payments would help the e-commerce industry weather the uncertainty of the coming global recession with a whole new target audience, secure infrastructure, and reduced transaction costs.

As crypto payments become more accessible with new tools and solutions for merchants and crypto holders, the e-commerce industry is likely to find an untapped market in the crypto ecosystem.

Disclaimer. Cointelegraph does not endorse any content or product on this page. Although we aim to provide you with all important information we may obtain, readers should do their own research before taking any action related to the company and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.



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