Blockchain technology is gradually making its way into the e-commerce industry as a viable, effective solution to operational constraints.
Since the advent of digital currencies and the supporting blockchain infrastructure that backs them, a business revolution has been slowly taking place. Several industries and sectors across finance, supply chain management, manufacturing, retail, trade, and even entertainment are beginning to integrate blockchain into their processes. However, one industry positioned to experience a quantum leap from proper deployment and usage of blockchain is e-commerce. This is because e-commerce already supports the necessary concept of wireless transactions that could aid blockchain usage. As it stands, credit card payments are the preferred option in e-commerce. However, a more effective, faster, easier, and safer alternative to the credit card scheme could overhaul this go-to e-commerce payment method.
Credit card payments currently pose many problems and constraints for buyers and merchants within the e-commerce space. These include transaction limits, hurdles associated with payment conversions, and issues arising from traditional bank payment systems. In addition, e-commerce merchants also sustain high transaction fees, while buyers risk using vulnerable payment channels. Furthermore, the required infrastructure by merchants for this form of traditional digital payment scheme could be sky-high. These merchants usually seek out highly-experienced IT personnel with esoteric knowledge that is rare.
In addition, due to stringent KYC verification requirements, many merchants feel forced to adopt a ‘pay first’ strategy before verification.
E-commerce Looks to Blockchain for All-round Operational Improvement
However, an increasing number of e-commerce merchants are beginning to explore the power of blockchain in executing transactions. This trend has seen crypto fintechs quickly explode in popularity as they compete with the…
