As a business, one of the key operating needs is to be able to accept various payment methods from your customers. Especially in an ecommerce site, where a lot of effort and money was already spent acquiring customers at the top of the funnel, the worst thing to do is to lose a customer during checkout. According to bigcommerce.com, lack of payment options and payment security accounted for over 1 / 5 of all cart abandons; 8% of those who abandon cart cited that they did not see the payment method they preferred and 18% did not trust a website with their credit card information.
Enter cryptocurrency payments. Cryptocurrencies will be able to offer several things to your business.
Free marketing to pull people in
Reduced transaction cost
Additional payment options for your users means an increased conversion rate
Potential investment vehicle for your business due to the momentum of Litecoin
Cryptocurrencies are just starting to gain traction around the globe where according to Google trends, is now being searched twice as much as pre-holiday levels 2 months ago (Nov 2017). Cryptocurrencies are just in the beginning stages.Another recent example of crypto’s inherent marketing value can be seen in how KFC Canada announced that they have started accepting bitcoins on January 11 with a limited “bitcoin bucket” — they sold out a day later. Due to the success of this initiative, they are now rolling this out to more KFC stores. A potential collaboration between KFC and Litecoin may also be in the works. From a speculative perspective, there is a good chance that Litecoin gets a deal as well because the KFC tweet with @Satoshilite (Charlie Lee) received half the likes of the original bitcoin announcement.
Transaction cost/Payment Options:
Transaction costs as a % of the sale can go as low as 0.5% of the transaction cost, which means a higher profit margin on the sale versus one completed with credit cards, PayPal or Amazon payments. One such payment integration provider is provided by Coinbase (link below), which is being used by sites like Overstock.com and Intuit (known for Turbotax). Coinbase has robust documentation and materials (implementation materials, logo’s, etc) but also has shopping cart APIs with companies like Magento, Wordpress and Woocommerce.Bitpay, not to be confused with BTCpay, also allows merchants to accept bitcoin payments but has been mired in controversy as of late. Without lead time and proper warning to their merchants, they increased their minimum transaction size to $100 and have been noted to charge high network fees, upwards of $20. In December 2017, Steam disabled the ability for consumers to pay with bitcoin. Luckily, BTCpay exists and allows merchants to accept cryptocurrency payments such as Litecoin that will allow for transactions to go even further below the 0.5% stated above and could potentially even provide those with the technical know-how a new avenue to generate revenues by becoming their own payments processor. With Litecoin fees planned to drop, this can even go lower.
Future payment solutions like Aliantpay, which is building an API for Wordpress as well as retail POS options for accepting Litecoin, and Litepay are coming soon and will further help the ease of integrating a cryptocurrency payment solution to any business. In addition, these solutions have the added benefit of driving consumer adoption for Litecoin.Investment vehicle for your business:
The rise of cryptocurrency values has been widely publicized giving businesses a new avenue of generating returns. It should be noted that the cryptocurrency prices continue to be volatile but business owners have an option of converting any portion of a sale into fiat (usd, eur, krw, etc) at the time of sale but may also choose to keep a percentage in cryptocurrency. A method that may be worthwhile for business to look into is a concept in investing called “dollar-cost-averaging” (DCA). The way it would work is to consistently keep a very minimal percentage of a sale in cryptocurrency for each transaction and in the long run will allow a business reduce risk and ride the rising tide of cryptocurrency with less volatility.
Future:
Cryptocurrency and the blockchain continues to receive massive consumer and business interest around the world. It is only the beginning for adoption and worldwide commerce but as use-cases come up seemingly almost every day, it is one technology that is going to continue to gain traction and seep into being part of our day to day lives.
For Litecoin, the future is bright. Despite being one of the oldest cryptocurrencies out there, it is just gearing up for 2018. The Litecoin Foundation is hiring and building a full team. The currency has taken a bold step in decentralization of a currency as not even the founder can now sell to move a market. Businesses are now adding support for day to day use (Aliantpay, Litepay, etc) by reducing barriers to entry for consumers and businesses to use Litecoin.
We are close and the potential is there.
What is the unique quality of litecoin to other cryto curriencies?
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