Shop.com customers asked to check out using their Bitcoin wallet or other cryptocurrencies. Now they can with BitPay, a bitcoin payment service provider.
“We had responses coming into our customer service [department] and our customer feedback reports indicated shoppers wanted to pay with cryptocurrency,” says Steve Ashley, president and chief operating officer of Shop.com, which is owned by Market America, No. 79 in Digital Commerce 360’s Top 1000. “[Offering cryptocurrency as a payment option] was something we were already interested in. It just made sense to do it.”
Based on this customer feedback, Ashley estimates about a quarter of Shop.com’s customers are interested in paying with cryptocurrency. Shop.com anticipates cryptocurrency becoming more mainstream, and the retailer is offering this payment option for that interested segment of shoppers.
“About 20% to 25% of our current customers are very interested in cryptocurrency—but it’s about that other 75% you want to engage as well,” Ashley says. “That 25% has been involved and buying and selling it for years, so they’re very engaged as far as what’s happening on the blogs and NFTs (nonfungible tokens), CNBC, etc.”
Shop.com customers aren’t the only ones interested in paying with cryptocurrency. A survey of more than global 6,300 consumers found that 45% of people plan to use cryptocurrencies soon, according to a report published by technology consultancy Capgemini SE in October 2021.
BitPay charges retailers a 1% per transaction fee, which is cheaper than it would have been for Shop.com to build a cryptocurrency processer in-house, Ashley says. “That’s less than what we pay on credit card transactions as a company. When BitPay said a 1% flat rate, I had to ask multiple times to make sure it was a true flat rate in any scenario,” Ashley says. “We were ready and excited to take on the challenge of building it in-house, but when you have a partner who is offering you this rate—it really was a no-brainer for us.”
It took about six to seven weeks to integrate BitPay into Shop.com’s website. Since launching in September, “initial results have been good,” Ashley says. “Lots of click-throughs at checkout for customers interested in learning more about the processor.”
Now, when shoppers go to check out they will see a BitPay option offered. Shoppers click on BitPay, and then Shop.com redirects them to a BitPay window where they complete the transaction. After shoppers hit submit, BitPay sends shoppers back to Shop.com to hit confirm and purchase. This is similar to how shoppers check out using PayPal on Shop.com, Ashley says. Shop.com also offers videos for shoppers interested in learning more about using BitPay on its site.
“Average order value has been higher than ‘normal,’” Ashley says. “It’s still really early—electronics and organic foods have been popular checkout categories.” Digital Commerce 360 estimates Market…