Pakistan’s e-commerce market size reached $2.1 billion in 2020, showing a growth of 35% compared to the previous year. Recent reports by prominent Pakistani newspapers suggest that the e-commerce industry is set to grow even more in the coming years due to the increasing internet penetration and the adoption of smartphones. The country has a large population of over 220 million people, with a significant portion of the population under the age of 30, making it a prime market for e-commerce growth.
With all the advancements that we are making to provide a more conducive environment for this industry to flourish, we should also look at the several benefits that cryptocurrencies, especially Bitcoin and Ethereum, can offer to e-commerce businesses in Pakistan.
If you have an e-commerce store or are thinking about launching one soon, keep reading to find out how you can benefit from incorporating cryptocurrencies as a mode of payment for your products or services.
Global Reach
Considering the economic situation of Pakistan, in recent times, every business wants to scale their operations to a global scale and offer their products and services to the international market. There is huge potential for growth in the international market and the purchasing power is definitely higher. While there are many challenges that a business owner can face while expanding their operations and targeting the international market, a common challenge that they face is finding a reliable way of receiving payments. Cryptocurrencies are accepted globally so there is no need for currency conversion protocols.
Lower Transaction Fees
Cryptocurrencies are decentralized by nature, which means that there is no need for intermediaries, banks, or other payment protocols to conduct transactions. Reducing the number of third parties involved in transactions significantly reduces the transaction costs. Although, we will strongly advise you to use a reputable and secure exchange platform for your e-commerce business for receiving payments and storing your cryptocurrencies. Binance is one such platform that provides crypto exchange and wallet services in Pakistan.
Faster Transactions
Time is money – this has been true always but is more than relevant in this economy. Traditional cross-border payments sometimes take weeks to clear, which stretches your business’ cash collection cycle. A significant benefit that cryptocurrencies offer is that you can receive money in your digital wallet almost instantly. Faster transactions can also improve your overall customer experience and customer retention. Faster payment clearance means your order processing time can be reduced – a win-win situation for both the vendor and the customer.
Financial Inclusion
Access to the internet has changed the business landscape with the introduction, and adoption, of e-commerce, as is already evident with the staggering growth numbers we saw earlier. This is great because it means that anyone with access to the internet can participate in the trade and open an e-commerce store with a fraction of the capital that is otherwise required for operating and maintaining a physical store. Innovation makes a society financially inclusive. The same holds true for adopting crypto as a mode of payment for e-commerce stores. People who are not able to otherwise participate in economic activities because of a lack of accessibility to traditional financial services can start operating with ease. Cryptocurrencies eliminate the need for a physical infrastructure and ecommerce store owners can fully operate digitally.
The potential of innovative practices like opting for crypto as a mode of payment for e-commerce stores in Pakistan is huge. Business owners can expand their reach and cater to a global market and reduce their operational costs by finding a reliable and less expensive solution for cross-border payments. With proper awareness about conducting crypto transactions and sufficient resources, mainstream e-commerce businesses in Pakistan can flourish and this conducive ecosystem can also pave the way for more people, from unbanked and underbanked areas, to participate in the trade.
