Today, businesses face a dilemma: while cryptocurrency has several benefits, including lower fees, faster transactions, and global accessibility, it also comes with risks such as uncontrolled volatility and security issues — both of which are significant concerns for consumers. Research published in mid-2022 confirmed this, showing that 50.6% of online shoppers view cryptocurrency as the future of payments, while the latest survey of 4,000 people in the U.S. indicated that less than 1% chose cryptocurrency as their preferred online payment method.
In light of this situation, important questions arise: Should e-commerce businesses genuinely integrate cryptocurrency as a payment solution, or is it merely a fleeting trend? Can stablecoins provide a more reliable direction? Let’s analyze and explore the key factors that e-commerce businesses need to consider when adopting cryptocurrency.
The role of cryptocurrency in e-commerce today
Some platforms have utilized digital assets as a payment medium. According to recent research, the e-commerce and retail sector has the highest number of companies offering cryptocurrency payments, with a total of 76 businesses successfully leveraging this technology. In fact, the integration of cryptocurrency into business processes has begun to emerge, though it has not yet become mainstream, indicating that the adoption of cryptocurrency in e-commerce is still in its early stages.
Although the adoption of cryptocurrency in e-commerce is just beginning to emerge, companies with global customers have started to benefit from cryptocurrency transactions. This is primarily related to large companies, as 85% of them, earning over $1 billion annually, have adopted cryptocurrency.
In contrast, for medium-sized retailers earning between $250 million and $1 billion, only 23% have adopted cryptocurrency payments. However, they easily accept payments from international customers without dealing with exchange rates, prolonged transaction processing times, and high fees, unlike traditional payment methods.
For instance, Shopify, an e-commerce platform, is actively integrating cryptocurrency payments and enabling merchants to accept digital transactions from global customers through international payment gateways. With recent positive attitudes from governments, such cases are expected to increase.
However, businesses face several challenges — the value of some cryptocurrencies can fluctuate significantly over short periods, which is a major concern for vendors due to the inability to establish a stable pricing policy. In this context, stablecoins can be seen as a viable solution for companies in the e-commerce industry.
Stablecoin — the most viable option for e-commerce?
Stablecoins are one of the optimal choices for e-commerce companies as they retain the benefits of cryptocurrency payments while minimizing volatility risks. In addition to reducing risks, stablecoins are also more transparent and secure for the public, which increases trust. For example, Circle, the issuer of USDC, is obligated to provide monthly attestation reports from independent accounting firms, which enhances user confidence in its transparency.
The potential for widespread adoption is also shaped by ongoing regulatory changes, playing a crucial role in establishing clear guidelines. Recently, the U.S. House of Representatives presented an updated version of the STABLE Act, significantly amending the draft from last month.
The new version aims to support stablecoins by introducing new compliance mechanisms, expanding regulatory oversight, and potentially creating a federal framework for the issuance of payment stablecoins. As regulations take shape, e-commerce companies could be among the first to offer stablecoins as a payment method to stay ahead of the market, which could significantly impact industry growth and attract considerable attention.
Additionally, stablecoins can be integrated into existing payment services — for example, PayPal has begun adopting cryptocurrency as part of its service, and we may not have to wait long for others to follow suit. Primarily because businesses do not need to rebuild their payment infrastructure to successfully implement stablecoins — it is quite easy to execute. By using stablecoins through robust platforms with advanced cybersecurity mechanisms, businesses can minimize risks and prevent fraud.
Ultimately, stablecoins could open new markets for consumers in areas with limited banking infrastructure. In its 2021 report, the European Parliament emphasized that stablecoins could positively impact global trade, driving the development of global payment agreements and enhancing financial inclusion in both developed and developing countries. Therefore, this confirms that the adoption of stablecoins by e-commerce businesses could play a crucial role in expanding their reach.
Conclusion
Integrating cryptocurrency payments in e-commerce should not be seen as a passing trend, but as a strategic move that can transform digital commerce. We can expect that within the next 5–10 years, stablecoins could become the standard for cross-border payments and change the way digital transactions occur between businesses and consumers.
Stablecoins, with their consistency and asset backing, provide businesses with protection against excessive volatility, seamless integration with existing payment services, and expansion into areas with limited financial infrastructure. However, companies should consider robust security mechanisms, transaction management, and regulatory compliance to effectively leverage this payment method.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.