Just as shoppers are increasingly making the jump from brick-and-mortar shopping to ecommerce, they may soon adopt new payment methods for online transactions. In such a quick-moving online landscape, it’s only wise to assume the next innovation is right around the corner.
Remember when online shoppers paid primarily with credit cards? Now, digital wallets are rising in popularity as a convenient way to check out. Nearly half of millennials (45 percent) have already used a mobile wallet to pay online.
But ecommerce entrepreneurs are already focused on the next horizon: the future of blockchain technology in ecommerce.Why?To start, over 10 percent of the global gross domestic product (GDP) is projected to be stored in blockchain platforms by 2025.
The Basics of Blockchain
Most people associate blockchain technology with cryptocurrency because it’s the technology that powers Bitcoin, Ethereum and more. The simplest way to describe blockchain is as a distributed ledger of transactions where nodes (computers on a network) store all transactions. Think of it like an online financial statement, but global and independent of any one owner or governing body.
Boosting Speed and Security, Reducing Fraud
Ecommerce sellers know speed and security are the make-or-break factors in their bottom line. To be competitive in today’s marketplace, merchants conduct regular cloud ecommerce platform comparisons to ensure their stores are compatible with as many payment gateways and sales channels as possible. Flexibility is key, so failure to work with popular digital wallets (and perhaps soon, cryptocurrencies) gives customers a reason to seek out a competitor who will.
Making blockchain technology a regular part of ecommerce has the potential to streamline the entire checkout process on both sides. Right now, brands work with third-party vendors (like credit card companies, banks and other payment processors) just to provide the framework for each online transaction. And guess what? All these extra services rack up fees as high as seven percent per purchase—an overhead cost that’s frequently passed along to the buyer.
Adding blockchain technology to the equation would enable peer-to-peer transactions. Remember that accurate, universal ledger mentioned earlier? Transactions would show up there, rather than having to reroute through private third-party vendors and businesses, eliminating many of these fees for everyone involved.
Another hurdle in our current ecommerce landscape is payment fraud, which is on the rise for Card-Not-Present (CNP) transactions online. Online brands have to worry about the costs and bad PR associated with chargeback fraud. However, blockchain technology could potentially streamline the payments process so it’s completely transparent and secure.
Due to the “decentralized structure” and “immutable nature” of blockchain, malicious fraudsters would be unable to alter the transactional data. This would reduce instances of fraud in online selling and boost the trust of customers worldwide—potentially even encouraging them to shop online more frequently without fearing identity theft or worse.
Finally, blockchain tech could simply speed up transactions, meaning more efficient buying and selling through online channels. Although it’s not always apparent to the consumer, some payment processes already involve over 15 steps (and as many as 15 separate fees). Blockchain would eliminate the need for these “middle men”. Along with fees, processing times would diminishtoo. Real-time transactions would become the norm.
This is why ecommerce giants like Alibaba are already investigating possible benefits and use cases involving the future of blockchain in ecommerce. Many people believe cryptocurrency will soon be usable in online buying—meaning websites ready to accept flexible payment methods would gain a competitive edge moving forward.
Here is What Makes You More Likely to Fall Victim to a Data Breach
In recent years, data breaches have become more and more common. Being the victim of a breach is a very scary thing, your personal data is at risk and you aren’t sure how little or how much information has been taken from you. Are there…
If Online Privacy Is Dead, Is There Anything We Can Do?
The online world is both wonderful and frightening in equal measure. On the one hand, we have access to unlimited information and resources, but on the other, we have zero privacy. For most adults, the internet is a part of every aspect of their daily…
Reason To Choose Comodo SSL Certificate To Secure Your Website
It should be clear by now that for your website to survive in this modern era, hacker ridden internet era, it is important for all the information that go on it or through it to be encrypted. To have a website without SSL protection is…
6 Unexpected Security Concerns, and How to Prepare
As powerful as the Internet is right now, it’s impossible to even imagine where it will go over the next years and beyond. But, as fast as security protection continues to improve, hackers seem to improve even more quickly. Everything from new devices to apps…
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Appliance
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
How Does VPN Work? Privacy Basics for Beginners
Although envisaged otherwise, the Internet had become the global village in the past decades and it was the information accessibility that mattered the most. It is quite disappointing that we don’t completely have the same privilege nowadays. As you might know, governments and other organizations…
Mobile Casinos and Other Hot Trends in Online Gambling
Mobile apps present a new level of gambling. Mobile gambling is, therefore, the number one priority for online casino operators and game developers. Every year more and more players prefer betting on mobile devices instead of the desktop computer or the electronic notebooks. For long-time,…
3 Ways to Prepare For Cyber Security Risks That Employees Must Know
In a world where everything is much easier to do via mobile, app, or device, technology is not going to slow down. We’re all guilty of potentially owning more than one device, whether that is our personal phones, work phones, tablets or fitness trackers. All…
Non-Negotiable Elements For Your Business IT Security Plan
In 2019, having a business IT security plan is more important than ever. An IT security plan is the first line of defense you have for protecting your business – and your clients – against cybercriminals. Cybercriminals include hackers, who frequently obtain personal information with…
Businesses Need To Be Proactive When It Comes To Cyber Security
For business of any size, making sure they are not only compliant with security regulations but continually improving and adjusting the measures they have in place is vital. Quite often the factor which determines how a business approaches cyber security is the mindset of the…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…