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Crypto and blockchain cut the clutter for e-commerce

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  • Crypto and blockchain cut the clutter for e-commerce

    The inevitably increasing use of cryptocurrency, even if not to supplant fiat currency, can help hurdle old e-commerce obstacles. Payment transactions in traditional forms, like credit, debit, or other payment platforms that use fiat currency require intermediary companies to transfer payment between two parties.

    Payments are taken from the purchaser's account and processed through the intermediary system, a process that requires merchants to pay a small percentage of the purchase for processing the transaction. Moreover, local regulations might create hurdles for e-commerce businesses to overcome in receiving and processing payments, especially when dealing with exchange currencies.

    Blockchain's cross-border power, however, cuts out the intermediary and solves the problem of rendering the traditional processing system redundant, and processes the payment on a chain with no middleman intervention. Not only do the intermediary transactional fees dissipate with crypto payments on blockchain, but so do any exchange-rate-fee charges, too, for purchases made across borders, reducing issues related to local regulations for international consumer payments.

    Hurdling potential obstacles for international e-commerce payment processing through the utilization of cryptocurrency payments opens the door for even more growth than we've witnessed thus far. Many companies in the blockchain space have already produced effective and secure blockchain technologies for transferring money across borders in a way that's compliant with KYC and AML regulations, like Everest. These kinds of tech developments will supply the underlying system on which an international cryptocurrency payments system would run.

    E-commerce may be successful with the current fiat-based payments system in place, but virtual currencies can add a new dynamic to the fold. With increased convenience for consumers, an increase in cryptocurrency ownership, perpetually improving blockchain technology, and the reduced cost of circumventing intermediaries, virtual currencies can open a new door for e-commerce to extend its growth to its fullest potential.

    A greater number of merchants are moving to the e-commerce sector as consumers demand more convenience.

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