Bitcoin’s Solution to e-CommerceRichard Ogunsola
E-commerce is an economic activity of buying or selling of products over the Internet or other online platforms. Bill Gates the immediate past world’s richest man once said
“If your business is not on the internet, then your business will be out of business.”
The big players in this online business on the Nigerian turf are Jumia, Konga/Yudala, Dealdey, Wakanow, Jiji, Payporte, OLX etc.
In 2017, a Nigerian Business journal released a report putting the value of the local e-commerce market at $13bl (N4.5trl) while the National Bureau of Statistics (NBS) projects that in 2018 it could hit a whooping N10trl.
While these are promising projections, there are however a few challenges affecting these top players.
The challenges include:
1. High cost of operation (Billing, Invoicing, Accounting, Human resource etc.)
2. High transaction charges by third party payment agents
3. Payment method challenges (Prepaid, Payment on Delivery, in-person payments etc.)
4. Trust issues
5. Logistics brouhaha (Transportation, Warehousing etc.)
7. Security concerns (the Jumia delivery man case)
And so on.
These myriad of menace have adequately been taken care of with the advent of the Blockchain technology. Merchants who run e-commerce business on Custom-built websites, WordPress, Shopify and other similar online platform can now start accepting Bitcoin and other Altcoins for goods sold and services rendered
Although Bitcoin payment option is not only limited to online businesses alone, offline businesses such as Start-ups, Small & Medium scale Enterprises, Individuals and Charities can also start accepting Cryptos as payment.
Benefits Of Accepting Bitcoin & using Cryptocurrency Payment Gateways
1. Your business gets a trust-able/secure 24/7 and 365 days payment channel that works.
2. You can receive cross-border payments which you can track in real-time.
3. Your business gets a worldwide customer base.
4. Your business gets more profits in the form of lower transaction fees, little or no credit/debit card chargebacks.
5. Your business has a leverage to keep some amount of the profits in BTC (as an investment option). While you might receive the rest in Fiat currency, this could help your business venture in the long-term.
6. You and your business get the rare luxury to ‘Be Your Own Bank (BYOB)’.
7. As a merchant, you do not have to spend a lot of time developing your own merchant tools to accept every cryptocurrency and popular currencies ($ £ € ¥ #) as payment for goods and services at your store.
Most gateways let your customers pay for products with any cryptocurrency of their choice.
8. These gateways are more advantageous than just sharing your crypto wallet addresses to your customer (especially when there’s a large client base).
To maximally enjoy this novel blockchain transaction benefits, you will need to know about the various Bitcoin payment gateways and how they operate.
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