Commerce 2.0 | Commerce Needs to Go Crypto
The commerce landscape is changing as new technologies become mainstream. Today’s method of commerce is quickly becoming outdated. One way that is clearly in evidence is the move from brick-and-mortar to e-commerce platforms and mobile technologies.
Shoppers are doing more of their shopping through mobile applications, even when standing in the brick and mortar establishment. Business Insider reports that last year “more people made purchases from their smartphones than ever before—2017 will go down as the year,” said reporter Dennis Green, “shoppers finally discovered their smartphones.”
We are entering a new era of commerce.
95% of Americans now own a cellphone of some kind.
One third of Americans live in a household with 3+ smartphones. Higher income households are twice as likely to acknowledge this.
The number of people using smartphones worldwide will reach 2.87 B by 2020, roughly one-third of the global population.
Industry levels in e-commerce should exceed $5.5 Trillion by 2020.
It’s a like an astronomical conjunction on a clear night. With so many shoppers keying purchases into their phones, and eager retailers looking to capture a hefty portion of that $5.5 Trillion, it does beg an interesting question:
How will all of these mobile-consumers pay for their purchases? And that’s precisely the solution that opens the door for Lantah.
1. Lack of control and flexibility when buying selling on current platforms
Obviously, mobile transactions are made primarily on credit or debit cards and PayPal. Buyers are also beginning to turn to mobile wallet applications because they include the other payment options.
True mobile wallets are interactive, virtual forms of physical wallets. Consumers select a payment type at the point of sale: debit, credit or wallet such as V.Me or MasterPass.
According to a 2016 survey, an attractive feature of mobile payment technologies for consumers in the United States was the ability to use one’s phone to stop unauthorized payment transactions.
But what if a buyer lives in a remote area without access to a bank or a credit card? Or what if the seller won’t deliver to that buyer even if he does have the digital cash needed to make the purchase?
Recently, a colleague wanted to gift some books to a man who runs an orphanage in Uganda. The super retailer would not ship the books directly to Uganda. Instead my colleague had to have the books sent to her and then pay an additional $30 US to ship them herself.
The inability to serve these types of customers results in abandoned shopping carts. It also hinders buyers who may have the money, but not the right type of money to complete a simple purchase.
What about people with cryptocurrency?
“Last week Jack Dorsey, the founder of Twitter and the payment company Square, said he believes cryptocurrency will overtake the U.S. dollar as the world's primary currency in 10 years, if not sooner.”
According to Wikipedia there a somewhere around 1384 cryptocurrencies at this writing and many more expected to come online.
To give you an idea of how many coins are in circulation, here are only 4 of the most well-known coins in circulation. • As of Q4 2017 there were 17 M bitcoins in circulation [supply cap is 21M] • As of Q1, 2018 there are 98.4 M Ethereum in circulation [there is no supply cap] • As of Q1, 2018 there are roughly 16 M Monero in circulation [there is no supply cap] • As of Q1, 2018 there are roughly 56 M Litecoin in circulation [supply cap is 84M] How much money do these 4 currencies listed in this form translate to? Valued in US dollar as of March 23rd, 2018 at 12:36 ET, we’re talking somewhere on the order of: • $149,179,273,576 Bitcoin • $51,766,381,452 Ether • $3,387,256,426 Monero • $9,046,884,833 Litecoin That’s over $212 Billion in only 4 currencies.
2. Expensive and slow settlement of exchange
Online marketplaces can charge margins of 4% to 1.5% on cross-border payments, Lantah is blockchain based. Fees will be negligible because blockchain is peer-to-peer by design, removing 3rd party intermediaries. Overhead and transaction fees will disappear.
Also, there won’t be the need to wait for approval from a bank or financial institution to know that payments have gone through.
Through the use of smart contracts, monies are held in escrow, and are only released once all of the transaction requirements are met. This removes unnecessary red tape and speeds up the process of moving money quickly while staying secure through blockchain encryption.
3. Inability to accommodate native currency
Finally, currency barriers that have existed in some geopolitical locations have held people back from transacting across borders.
The Lantah platform will remove that restriction within the Borderless Marketplace. People will be able to transact in the currency of their choice.
Along with the adoption of the smartphone, buyer and seller markets have also expanded geographically. The Internet has allowed greater and greater numbers of enthusiastic buyers access to a broadening range of goods and services.
Sellers are looking to capture shares of these new markets. To succeed, retailers, wholesalers and related industries such as financial services, must adapt. They must remove currency barriers and provide logistical support for these new participants.
It’s time for commerce to do a little bit of catch up. With the help of blockchain and the liquidity of cryptocurrency, both buyer and seller will benefit from this next generation of online commerce. Lantah is ready to lead the way.