The 10% increase in sales you didn't know about!
Cryptocurrency for E-commerce
I've heard this, well, I've honestly lost count of how many times.
The reality? The market keeps growing long term and there is a lot of turbulence and goes through growth and adjustment cycles, but will continue to grow. Today, I see a new crypto payments company popping up at least once a week, promising the world of ‘how crypto payments are a must-have’. But if that's true, why isn't it as widespread as BNPL (Buy Now, Pay Later?) Simple, the average share of cart that crypto gets is about 5%, while BNPL captures about 15% to 20% .
When speaking to a merchant, they have three main objections:
- I can't prioritize it
- Not enough people want it
- I don't think my CFO will want crypto on my balance sheet
As a VP of eCommerce or CMO, what data-driven metrics can I look at on how this will positively impact my business?
- AOVs will DOUBLE, while BNPL typically has a 68% higher AOV.
- There are several 0% fee options, meaning that its 100% lower cost vs BNPL and traditional card processing.
- The marketing opportunity is huge and allows access to a new consumer base, 63% of millennials that make $100,000+ own crypto, making crypto the next big wave in payments.
So let's run through a use case on how this affects you as an eCommerce brand, or really any business.
Let's say you sell $10,000,000 a year worth of services or products and that you have an AOV (average order value) of $200. You see 15% of your business goes to BNPL at a rate of 4%, 10% of your business to PayPal at 2.9%, and the remaining 75% to card processing at an average rate of 2.5%. That means that you are paying just under $300k annually to process payments, while ignoring new payment options, which not only lower this cost but also convert at a higher rate with a larger total ticket size.
You decide to integrate crypto through (shameless plug) QisstPay with our no-code option and are up and running in 30 seconds over a 30 day period. And are now generating, not only $1M more in sales, but also high margin due to an optimized payment stack. The beauty of this is not just limited to this but also the fact that you can now leverage crypto acceptance as a marketing tool, capturing a completely new segment of consumers that you did not have access to before.
As a CMO or VP of eCommerce, it’s extremely difficult to prioritize what you have in your pipeline, and what can drive the highest end result for your organization, but focusing at bottom of the funnel activities has largely remained untouched over the years except for BNPL, which has also shown to drive immense conversion improvement. BitPay, Coinbase, and Voyager, are just some of the potential options in the market, with many more coming.
Don’t stop just at crypto, also take a look at other payment and conversion improvement options that could drive higher revenue to help drive your brand towards your goals.