BitcoinCryptocurrency

Bitcoin in e-commerce: will cryptocurrencies become a means of payment

Cryptocurrencies have long established themselves as an investment vehicle that can generate profits quickly.

Wells Fargo Investment Institute experts even called Bitcoin the best investment asset, the value of which increased by 170% over the year. But whether bitcoin will become a means of payment is still not clear. On the one hand, the business is ready to accept payments in cryptocurrencies, if this does not contradict the current legislation. On the other hand, on a global scale, there are still relatively few cryptocurrency users, which means that Bitcoin can be called a popular means of payment with some stretch. Is there a future for cryptocurrencies in the e-commerce sector?

Russian e-commerce introduces crypto payments

E-commerce is one of the fastest growing sectors of the global economy, and the coronavirus epidemic has only spurred its pace of development. The largest marketplaces such as Amazon, OverStock, OpenSea are already using Bitcoin as a means of payment. Following them, other giants began to accept cryptocurrencies – Microsoft, KFC, Shopify, Subway. However, in Russia, the adoption of bitcoin as a means of payment remains a real problem.

This year, Russia adopted a draft law “On digital financial assets”, which actually allows operations with cryptocurrencies, but prohibits the use of bitcoin to pay for goods and services. This is because businesses still do not understand how to accept payments in cryptocurrencies, and the authorities do not know how to control the flow of cryptocurrency transactions.

“If we consider the e-commerce sector, then there are two popular types of payment: by invoice and asynchronous process by deposits,” says Max Krupyshev, CEO of CoinsPaid. – And if the client pays according to the invoice, then he must transfer a clear amount. For example, if sneakers in a store cost $ 99, then the customer should pay exactly $ 99, not $ 98 or $ 100. In fact, the holder of the cryptocurrency can send this amount in bitcoin, but what about the rate? “

Indeed, cryptocurrency rates can change significantly within a few hours, so it is unrealistic for online store owners to adjust the price of a product to the current rate of bitcoin or other cryptocurrency. You can solve this problem with the help of special crypto-processing solutions.

How does e-commerce cryptocurrency processing work?

Crypto processing is a turnkey solution for accepting cryptocurrency and fiat payments. Today these technologies are used all over the world, and Russia is no exception. The main consumers of crypto processing services are online stores, websites selling air tickets and travel tours, as well as companies in the gaming industry.

“If there is a need to pay for the goods according to the invoice, then the payment cryptocurrency service generates a special link that redirects the user to the payment page,” explains Max Krupyshev, CEO of CoinsPaid. “The amount to be paid in bitcoin or other cryptocurrency is already indicated here. The rate is fixed for the next 15 minutes – during this time the client needs to redeem the goods ”.

In the case of an asynchronous deposit, which is often used, for example, by sports betting services, a link and fixing the rate are not needed at all: the client simply sends any amount to the company’s wallet. Funds are credited within 5-20 minutes.

Using crypto-processing provides several advantages for online shops at once:

  • allows you to receive payments in cryptocurrency, which means that you can reach an additional audience of buyers;

  • speeds up the process of receiving payments. Depending on the network, a cryptocurrency transaction takes from a few seconds to an hour, while a payment through Mastercard and Visa systems can be processed within a day;

  • allows the user to remain anonymous;

  • makes it possible to quickly exchange cryptocurrencies for fiat money, as well as keep records of cryptocurrency payments in real time.

In other words, using crypto processing technologies, online stores can accept payments in cryptocurrency quickly and easily.

Too good to be true

If crypto processing automates and simplifies the acceptance of crypto payments, why is it still not developed in Russia? CoinsPaid CEO believes that the main problem of the crypto processing market today is the lack of experienced specialists who could create reliable, convenient, and secure crypto payment services from scratch. 

“This, in my opinion, prevents the sphere from developing,” says Krupyshev. “Let’s imagine that some online business starts working with a small provider and encounters security holes, errors, sees a lot of bugs and inaccuracies, suffers from low speed. This will inevitably create not only a bad impression of the provider, but in general will negatively affect the user’s opinion about the entire cryptocurrency market. This kind of thing has enormous potential damage to the industry. ”

To avoid problems, a business that is seriously thinking about introducing a cryptocurrency payment service into its infrastructure is advised by Max to use White Label – the creation of turnkey crypto processing.

The second problem remains the use of cryptocurrencies in illegal activities related to human trafficking, drug trafficking, the sale of pornographic materials, pirated computer programs, etc. Therefore, companies offering crypto processing services should be responsible for their work and not facilitate the activities of criminal groups.

“Indeed, there is such a problem,” agrees Krupyshev. – Cybercriminals use mixers, crypto processing tools to accept payments for illegal goods in cryptocurrency and other shady technologies. Therefore, it is important to check the company and the legality of its business before implementing such solutions ”.

Summarize

Cryptocurrencies are confidently entering the e-commerce sector as a means of payment. The gradual legalization of cryptocurrencies in the world will facilitate their adoption in Russia. 

To make the payment process with cryptocurrency fast, profitable and transparent, crypto processing technologies are used. With their help, clear and familiar methods of payment by invoice or deposit remain available to customers. And turnkey ready-made solutions – White Label – help businesses quickly implement crypto payments in their daily work.

About author

Experienced Founder with a demonstrated history of working in the newspapers industry. Skilled in Data Research, Management, Investment Research, Teamwork, and Leadership. Influencing the technology, people, and technical analysis of the Cryptocurrency and Blockchain world.
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