If you take a look around, it won’t take long to realize that we are in the era of a digital revolution. Nowadays, convenience is paramount, and people love making purchases tucked under their blankets.
This is further proved by the sales eCommerce businesses racked up last year. More than $5.2 trillion were spent on online shops, so is it that hard to predict what the future of shopping looks like?
With eCommerce’s popularity, understanding digital payments in a dynamic landscape have become even more important. Nowadays, individuals rely on cryptocurrency to make payments. Of course, banking cards are still not sidelined, but it feels as if they are heading toward the exit signs.
But the beauty of life is that everything is uncertain. We never know if and when crypto value will drop and what will happen if we have to go back to old fashion purchase methods entirely.
However, let’s see what the facts are telling us about digital payments and how the world of business will look in the near future.
Crypto and Ecommerce Popularity Is Shaping the Future
Cryptocurrency’s popularity is immeasurable. It’s the favorite topic of millennials, and analyzing crypto charts is probably their favorite pastime activity. The convenience crypto offers users is incomparable to the one of fiat money.
As we progress toward the future, we can clearly see that each and every individual prefers to make payments with credit cards rather than cash. In recent times, we can see that nearly every store has a sign in the storefront reading “Crypto Accepted”. So even if cards are still popular, it seems that fiat money is the real problem.
New generations love the decentralized nature of digital coins. Governments are not involved in their issuing, and therefore, it’s a coin made by people for people. Going on, sometimes payments are impossible, especially if you are making a transaction all the way across the globe. The main reason for this is that sometimes, the recipient might not have access to the particular currency the sender operates with. Crypto solves this problem completely.
That being said, this is why eCommerce businesses are so successful. They offer users millions of ways to make payments and, on top of that, give them the perfect customer experience. With various payment options and specifically designed targeting solutions, eCommerce businesses reduce cart abandonment rates effectively. This can be done by incentivizing customers to make purchases via perfectly crafted popup messages that even entertain.
The Security of Digital Payments
Besides being incredibly convenient, digital payment methods are also safe. Well, that is if we exclude credit cards. A simple cyber-attack can potentially expose your whole credit card information and enable malicious hackers to steal your funds.
For this reason, have a credit card with a small limit which will be exclusively for online purchases. And one with a high limit which will be exclusively used in brick-and-mortar stores for big purchases. This way, you will minimize your potential losses if your data gets hacked.
Moving away from credit cards, crypto wallets are much safer than any other method of fund storage. There are two options for cryptocurrency storage, hot and cold wallets. Cold wallets operate offline, and you can have them on a piece of hardware for easy access.
On the other hand, hot wallets are basically software that stores all your crypto online. Even if all the operations are conducted online, the wallets are extremely safe, and all your payments are completely secure.
Cash, on the other hand, has a lot of negatives going for it. For instance, inflation. In recent times, we have seen spikes of inflation that are outright scary. So, the best way to hedge against inflation is to buy assets, and cryptocurrencies are, in fact, assets. This means that you will both have the capacity to purchase on every digital platform effortlessly and protect yourself from inflation.
Bottom line
The future of digital payments depends on how businesses want to operate. And, with the increase in eCommerce popularity, it seems that the shift towards online operations is about to go full throttle and change how we view businesses completely.
With the increase in eCommerce popularity, we can also expect the power of cryptocurrencies to be completely unleashed, which will allow individuals to make fast and easy transactions from anywhere in the world.
