The world of online commerce is booming like never before. Customers are visiting online stores every day to buy anything, from essentials to luxury goods. In the US, e-commerce sales reached $1.119 trillion in 2023. While the growing sales are beneficial for online retailers, it is the payment system that often affects the entire operation. Nearly 62% of customers don’t visit the website again if they experience payment failure. Beyond payments, they also faced certain limitations with traditional payment methods. So when crypto adoption increased, merchants started to integrate crypto payment gateways. Let’s find out how it can make online stores profitable.

So, what are the problems with traditional payment methods?

Challenges of traditional payment systems

• Payment fraud: With an increase in digital payments, the risk of fraud has also increased, which affects retailers. In 2022, e-commerce payment fraud losses were estimated at $41 billion globally which increased to $48 billion in 2023.

• Cross-border payments: The rise of global e-commerce creates a demand for seamless international transactions. While domestic payments offer flexibility, things get complex with multiple currencies and traditional methods struggle to handle this.

• Transaction fees: Transaction fees are a major pain point for small e-commerce businesses. These fees charged by payment processors can significantly eat into profits, especially for businesses with limited cash flow.

These are some of the common, yet major challenges that affect online stores. Let’s explore how integrating crypto payment platforms can benefit merchants.

Benefits of Crypto Payment Gateways for Online Retailers

Reduced transaction fees:

As mentioned above, the biggest effect of charging transaction fees is that it reduces the profit margins of online retailers. In contrast, by integrating a crypto payment solution, one can enjoy the benefit of lower transaction fees as it eliminates intermediaries like banks and payment processors. 

Instant international payments:

Traditional international transactions can take several days to complete and often involve multiple intermediaries. Cryptocurrency payments, on the other hand, can significantly speed up this process by enabling instant transactions and bypassing many of the barriers associated with traditional systems.

Security:

When it comes to e-commerce, security is the top priority of retailers. Cryptocurrency payments operate on blockchain technology, which is known for its built-in security due to decentralized and unchangeable properties. This provides efficient security against fraud and chargebacks.

Accessibility:

Because of its global presence, cryptocurrencies enable retailers to broaden their customer base beyond geographic limitations. By integrating a cryptocurrency payment solution, online stores can appeal to international customers who prefer to make payments in digital currencies on the purchases of products and services.

Enhanced customer base:

Cryptocurrencies are increasingly popular around the world, and accepting them as payment allows you to tap into a global customer base that may prefer payments in crypto with the lowest transfer fees instead of traditional payment methods. This can be especially useful if you’re selling niche products or services that appeal to a tech-savvy audience.

There is no denying these are promising benefits, but it’s important to understand there are certain disadvantages attached to them.

Drawbacks of crypto payment gateway for online retailers

• Price fluctuations: Crypto prices can fluctuate significantly even within the short window of a customer placing an order. This can result in the retailer receiving less value.

• Integration and development: Adding a crypto gateway can require technical work to integrate with existing systems, which can be expensive for smaller businesses.

What you should consider in a crypto payment gateway? 

• Easy to integrate: 

Choose a gateway that integrates with your platform. Look for pre-built plugins for WooCommerce, and Magento, or a well-documented API for easier developer integration.

• Multiple currency support: 

Look for a gateway that supports popular cryptocurrencies, tokens, and stablecoins to cater to a wider range of customers.

• Transaction fees: 

When choosing a cryptocurrency payment provider, consider the crypto transaction fees and associated costs. You should find a cost-effective cryptocurrency payment gateway for your business.

• Robust safety measures: 

Select a crypto payment solution with strong security features such as encryption and 2FA (Two-Factor Authentication) that protect against cybercriminals and reduce the risk of financial losses.

• Customer support: 

A crypto payment platform should offer multiple support channels to address merchants’ requirements and queries.

Final Remark

Crypto payment gateways offer a unique opportunity for online retailers to address the challenges they face with traditional payment methods. They can significantly reduce transaction fees, streamline international transactions, and enhance security. However, it’s important to consider the cons associated with it such as price fluctuations and by carefully choosing a gateway that meets your specific needs, online retailers can accept crypto payments and increase their profitability. Coinremitter offers you all the features that you are looking for in a crypto payment gateway to accept cryptocurrencies as payments. The gateway ensures that you make crypto transactions at the lowest transaction fees easily and securely.