Is Cryptocurrency the Future of Ecommerce?

Cryptocurrency the Future of Ecommerce

Cryptocurrency is growing in popularity and usage. The same can be said of eCommerce. In fact, in recent years, the world of eCommerce has rocketed in a way that no one predicted.  It doesn’t take much of a leap of logic to presume that the two may walk hand in hand in the not-so-distant future.

Ecommerce is any online transaction that pertains to a business. So where does cryptocurrency fit into that?

An Overview of Cryptocurrency

Cryptocurrency is an entirely digital-based currency. It has no physical form, in that it doesn’t exist outside of the online universe. It has gained traction over recent years and can be used for a whole host of things.

It is a completely peer-to-peer transaction. This means that there are no actual banks involved, and it is not regulated in any way or governed by any official body. You are in charge of and accountable for each and every transaction. Cryptocurrency is, however, recorded on the official domain called the blockchain so transactions can be monitored and logged.

Cryptocurrency operates with a variety of different coins, which can be stored in an online crypto wallet. Again, this is all virtual. It is also all hidden. This means your identity is protected and every time you spend or trade, it is under an assumed crypto identity.

With all that in mind, is this virtual, anonymous, and peer-to-peer financial model the future of eCommerce?

Cryptocurrency and Ecommerce

Currently, there are not a large amount of online retail outlets that accept payment in cryptocurrency.  There is still a lot of murky uncertainty that makes businesses nervous. Is that likely to change? We think so.

The future of online transaction finance is likely to migrate toward a cryptocurrency model. It has less associated risk in that you don’t have to trust a third party with your money. There is less room for fraudulent activity. It is easy to track and trace. It is also accessible across the globe, so there are no limits on a country to country transactions.

All of these things add up to an attractive prospect for online businesses. With few limitations, arguably fewer associated direct arrangement costs, and a worldwide transaction platform, what is there to not get excited about?

ACH Payments

This leads us onto discussing ACH payments.

ACH, or Automated Clearing House, is a payment network for financial transactions. ACH payment processing API from Envestnet | Yodlee provides the user with a way to transfer from a personal account to a business account without the stress of the middle man. The main attraction of ACH payment processing API is that it is always available and completely virtual and secure. It fully supports cryptocurrency and is being used more and more by eCommerce to carry out transactions.

There is a bright future for crypto concerning eCommerce. The world is looking for a new direction financially.  Peer-to-peer finance could well be the big step forward we’ve all been waiting for.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.