What's next for crypto and ecommerce

Basant Singh of ACI Worldwide describes how bringing blockchain into the ecommerce ecosystem can unlock new payment rails for millions of digital currency owners while driving revenue and opening new channels for merchants.

We see two strong adoption trends emerging. Firstly, consumers are starting to see crypto as a currency for payments and not just as something to buy and sell as an investment. Secondly, many governments are looking at regulating digital currencies and using blockchain to empower populations, especially the underserved. Though this varies from country to country, momentum is accelerating at pace and is likely to fuel mass adoption within the next decade. At the same time, merchants are increasingly aware of the benefits of accepting real-time payments options, including crypto, as low-cost alternatives to cards. So, in general, merchants’ and shoppers’ desire to consider crypto as part of the payment mix is increasingly aligned.

Absolutely, it offers clear advantages for cross-border e-tailers, helping to control operational costs and as a potential acquisition magnet for young affluent international shoppers. Blockchain payments can boost revenue by removing currency conversion and interchange fees, as well as eliminating chargebacks, and reducing fraudulent transactions. As perceptions shift and crypto and digital currencies become more widely used, having ‘pay-with-crypto’ at the checkout may encourage spending and increase loyalty in key cross-border segments like fashion, electronics, and entertainment.

Merchant acceptance of crypto is only just starting to take off. Paying on blockchain technology is still a relatively new concept for many merchants. One of their biggest concerns is that it will upset normal business practices – adding complexity, impacting reporting, and making updates, regulation, and compliance even harder. This can be easily addressed by choosing a solution provider, like ACI, that can convert digital currencies into fiat currencies. Avoiding disruption while leaving merchants free to cope with the ever-changing e-payments landscape.

Web 3.0 platforms are already being decentralised, using tokens and cryptocurrency to shift ownership and ‘trust’ to users, and giving them a say in how they are run. Today, NFTs are being used to tokenise anything and everything in the digital world e.g. a meme or a piece of digital art. In the near future, we could easily see merchants offering their customers digital currency powered loyalty schemes, gift card programmes, easy consumer financing options, and much more – all covered by the safe and private nature of blockchain.

Bringing instant and direct peer-to-peer transactions over the internet at zero cost, blockchain-based cryptocurrencies can create greater opportunities for commerce in the metaverse. This turns it from a virtual destination where the primary intention is to interact to a powerful transaction platform where every interaction can lead to a sale. For games, fashion, media, and tech brands that are currently leading the metaverse revolution, the ability to monetise the platform through seamless, effortless, instantaneous payment is what will turn it from a ‘virtual playground’ to a new and highly strategic sales channel. Once again, the key to success will be having the right partners to help smooth the way, with real-time payment solutions that translate from traditional ecommerce environments into this new immersive domain.

If you are a merchant considering accepting payments over blockchain, globally, and would like to learn about accepting over 120 cryptocurrencies with just one API integration, contact us for a consultation with our blockchain subject matter experts.

This editorial was initially published in our Crypto Payments and Web 3.0 For Banks, Merchants, and PSPs Report. The first edition of our report aims to provide a go-to payment resource of crypto terms and concepts for those interested to understand the basics of crypto payments and their long-term impact. Furthermore, it shares practical examples of cryptocurrency-enabled ecommerce and banking services and presents the latest developments in the regulatory landscape. Also, it reveals what are the most innovative companies in this space, that are building the crypto rails.

Feel free to download your copy here.

About Basant Singh

Basant Singh is a highly experienced payments industry executive with more than 20 years of experience spanning payments, fintech, and consulting services. He leads ACI Worldwide’s Merchant and Payments Intelligence solutions portfolio, which encompasses a Payment Orchestration Platform to offer ecommerce, omnichannel payments, merchant fraud, and Alternative Payments. He has global business experience with merchant acquiring spanning direct and indirect channels, financial institution alliances, customer segments, and verticals.

About ACI Worldwide

ACI Worldwide delivers the software and solutions that power the global economy. Our mission-critical real-time payment solutions enable corporations to process and manage digital payments, power omni-commerce payments, present and process bill payments, and manage fraud and risk.