Moon_Hodler on Nostr: Shopify’s Competitive Advantage Is The Bitcoin Network When one thinks of ...
Shopify’s Competitive Advantage Is The Bitcoin Network
When one thinks of e-commerce, big names such as Ebay, Amazon, Alibaba, and Paypal likely come to mind. The internet is built for speed, and the payment rails that are used when transacting online should be just as fast and far-reaching as the internet itself. Shopify seems to realize this, and in 2022, they partnered with the Strike App (Strike) to create a partnership giving the e-commerce platform truly global capabilities by leveraging the Bitcoin protocol and its second-layer Lightning Network. This may not sound groundbreaking at first, but this is a preview of what global commerce will look like in the 21st century. Strike is a digital payments platform built on the Bitcoin protocol’s second layer Lightning Network. By partnering with Strike, Shopify can offer their sellers great new options and abilities in a modern global market. “Now eligible U.S. Shopify merchants will be able to receive bitcoin payments from customers globally as U.S. dollars, announced Strike CEO Jack Mallers speaking at the Bitcoin 2022 conference in Miami” (Forbes). The implications of this are hard to overstate. U.S.-based merchants will now be able to reach billions of customers previously outside of U.S. dollar-denominated markets. For example, a customer in Istanbul can purchase a piece of artwork from an artist in Denver, Colorado, without ever having to have American dollars or access to an American bank account.
“The service will be accessible to any consumer in the world with a Lightning Network-enabled wallet, including more than 70 million CashApp users, Mallers said” (Forbes). Lightning-enabled wallets are free to download on any internet-connected device. Additionally, as more and more payment platforms like CashApp begin to offer Lightning Network services, more markets will begin to open up for Shopify merchants, exposing them to more customers, more sales, and more revenue on a global scale.
An additional feature of convenience provided by Strike to Shopify merchants and their customers is that neither the customer nor the merchant have to have any Bitcoin at any time during the transaction. Let’s revisit our customer in Istanbul. This customer’s Turkish Lire will be instantly converted into bitcoin by Strike on their back-end. The seller in Colorado has a choice of either accepting the payment as bitcoin, or they can choose to have it instantly and automatically converted into American dollars, again by Strike on their back-end. More importantly, this occurs with a transaction fee of less than $0.01. Compared to Visa’s transaction fees that can exceed 3.5%, or Western Union’s transaction fees which exceed 6%, all parties concerned are saving money by using this technology. The nature of the Lightning Network, which is too technical for this paper, enables these near free, instant, final settlement transactions.
Market research supports the adoption of bitcoin infrastructure for e-commerce, and the financial services industry is looking for ways to support companies like Shopify and their merchants. “"The future of financial services will center around the use of digital assets, and we are focused on advising our clients on ways to engage in a regulated and compliant way," said Richard Rosenthal, Deloitte's digital assets banking regulatory practice lead and principal, Deloitte & Touche LLP” (NYDIG). What this means for the customers and merchants of Shopify and beyond is not lost to those building these services. "We envision a world where traditional financial infrastructure works alongside digital asset infrastructure to deliver clients a best-in-class experience with the highest standards of regulatory compliance," said Yan Zhao, president of NYDIG (NYDIG). The customer experience remains paramount to the success of any product or feature, and Shopify is putting the customer first by partnering with Strike.
One area of improvement needing attention is education. Consumers, merchants, and the executives of other e-commerce giants need to be properly educated about the capabilities of Lightning Network payment integration, and what it can accomplish. Many people are completely unaware of the possibilities, while others may be uninformed or misinformed when it comes to the use of Bitcoin and Lightning Network technology. Shopify is one e-commerce giant who does understands the limitless potential and value for customers and merchants alike and is partnering with Strike to offer their customers near-free global final-settlement capabilities. As global marketplaces evolve, Shopify is leveraging the best digital asset technology available to provide merchants and customers the best possible experience and value.
Works Cited
Bambysheva, Nina. “Strike Announces Shopify Integration, Partnerships With NCR And Blackhawk Bringing Bitcoin Lightning Payments To Major Merchants.” 07 April 2022. https://www.forbes.com/sites/ninabambysheva/2022/04/07/strike-announces-shopify-integration-partnerships-with-ncr-and-blackhawk-bringing-bitcoin-lighting-payments-to-major-merchants/?sh=27a719a952fc. Accessed 17 April 2023.
Press Release. “Deloitte and NYDIG Announce Alliance to Provide Banking for All With Bitcoin.” 21 June 2022 , nydig.com/news/deloitte-and-nydig-announce-alliance-to-provide-banking-for-all-with-bitcoin. Accessed 17 April 2023.
When one thinks of e-commerce, big names such as Ebay, Amazon, Alibaba, and Paypal likely come to mind. The internet is built for speed, and the payment rails that are used when transacting online should be just as fast and far-reaching as the internet itself. Shopify seems to realize this, and in 2022, they partnered with the Strike App (Strike) to create a partnership giving the e-commerce platform truly global capabilities by leveraging the Bitcoin protocol and its second-layer Lightning Network. This may not sound groundbreaking at first, but this is a preview of what global commerce will look like in the 21st century. Strike is a digital payments platform built on the Bitcoin protocol’s second layer Lightning Network. By partnering with Strike, Shopify can offer their sellers great new options and abilities in a modern global market. “Now eligible U.S. Shopify merchants will be able to receive bitcoin payments from customers globally as U.S. dollars, announced Strike CEO Jack Mallers speaking at the Bitcoin 2022 conference in Miami” (Forbes). The implications of this are hard to overstate. U.S.-based merchants will now be able to reach billions of customers previously outside of U.S. dollar-denominated markets. For example, a customer in Istanbul can purchase a piece of artwork from an artist in Denver, Colorado, without ever having to have American dollars or access to an American bank account.
“The service will be accessible to any consumer in the world with a Lightning Network-enabled wallet, including more than 70 million CashApp users, Mallers said” (Forbes). Lightning-enabled wallets are free to download on any internet-connected device. Additionally, as more and more payment platforms like CashApp begin to offer Lightning Network services, more markets will begin to open up for Shopify merchants, exposing them to more customers, more sales, and more revenue on a global scale.
An additional feature of convenience provided by Strike to Shopify merchants and their customers is that neither the customer nor the merchant have to have any Bitcoin at any time during the transaction. Let’s revisit our customer in Istanbul. This customer’s Turkish Lire will be instantly converted into bitcoin by Strike on their back-end. The seller in Colorado has a choice of either accepting the payment as bitcoin, or they can choose to have it instantly and automatically converted into American dollars, again by Strike on their back-end. More importantly, this occurs with a transaction fee of less than $0.01. Compared to Visa’s transaction fees that can exceed 3.5%, or Western Union’s transaction fees which exceed 6%, all parties concerned are saving money by using this technology. The nature of the Lightning Network, which is too technical for this paper, enables these near free, instant, final settlement transactions.
Market research supports the adoption of bitcoin infrastructure for e-commerce, and the financial services industry is looking for ways to support companies like Shopify and their merchants. “"The future of financial services will center around the use of digital assets, and we are focused on advising our clients on ways to engage in a regulated and compliant way," said Richard Rosenthal, Deloitte's digital assets banking regulatory practice lead and principal, Deloitte & Touche LLP” (NYDIG). What this means for the customers and merchants of Shopify and beyond is not lost to those building these services. "We envision a world where traditional financial infrastructure works alongside digital asset infrastructure to deliver clients a best-in-class experience with the highest standards of regulatory compliance," said Yan Zhao, president of NYDIG (NYDIG). The customer experience remains paramount to the success of any product or feature, and Shopify is putting the customer first by partnering with Strike.
One area of improvement needing attention is education. Consumers, merchants, and the executives of other e-commerce giants need to be properly educated about the capabilities of Lightning Network payment integration, and what it can accomplish. Many people are completely unaware of the possibilities, while others may be uninformed or misinformed when it comes to the use of Bitcoin and Lightning Network technology. Shopify is one e-commerce giant who does understands the limitless potential and value for customers and merchants alike and is partnering with Strike to offer their customers near-free global final-settlement capabilities. As global marketplaces evolve, Shopify is leveraging the best digital asset technology available to provide merchants and customers the best possible experience and value.
Works Cited
Bambysheva, Nina. “Strike Announces Shopify Integration, Partnerships With NCR And Blackhawk Bringing Bitcoin Lightning Payments To Major Merchants.” 07 April 2022. https://www.forbes.com/sites/ninabambysheva/2022/04/07/strike-announces-shopify-integration-partnerships-with-ncr-and-blackhawk-bringing-bitcoin-lighting-payments-to-major-merchants/?sh=27a719a952fc. Accessed 17 April 2023.
Press Release. “Deloitte and NYDIG Announce Alliance to Provide Banking for All With Bitcoin.” 21 June 2022 , nydig.com/news/deloitte-and-nydig-announce-alliance-to-provide-banking-for-all-with-bitcoin. Accessed 17 April 2023.