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Tapping into Global e-Commerce with Virtual Asset Payments

April 3, 2024
Tapping into Global e-Commerce with Virtual Asset Payments

Understanding Virtual Asset Payments

Virtual assets refer to tokens and cryptocurrencies that utilize blockchain technology i.e. distributed ledgers and cryptography.

With over 420 million people using cryptocurrencies globally, Statista’s projections estimate over $4.12 billion in annual cryptocurrency payments by 2029, and a sizable chunk would be related to e-commerce.

This also includes stablecoins are pegged to fiat currencies like USD to fix the volatility issues of regular cryptocurrencies while retaining blockchain benefits of speed, security, and transparency.

Meme coins (Dogecoin), Lithium, Ethereum, and NFTs are also used as payment methods in e-commerce. All of these are decentralized virtual assets that allow global, seamless transactions.

How do Virtual Asset Payments Work?

Here’s a quick example of a virtual asset payment initiated by the customer on an eCommerce portal, in simple steps:

  • A QR code is created and displayed on the e-Commerce payments page, then the fiat purchase amount is converted to the virtual asset (currency) which the customer intends to pay in.
  • Next, the customer scans the same and initiates a payment from their cryptocurrency wallet to the merchant's wallet address.
  • This amount is received in the merchant’s wallet once the customer confirms debit to their wallet.

To set up the system above, eCommerce merchants can integrate virtual asset payments using WadzPay APIs. These WadzPay gateways provide plugins to easily accept virtual/crypto payments on online portals with QR code support. WadzPay’s platform also works with trusted technology partners to handle exchange rate conversion, custodial services, volatility management and settlement into fiat currency.

The Benefits of Virtual Asset Payments for Global e-Commerce

Here’s how virtual assets are transforming payments in global e-commerce:

  • New Target Segment: Accepting crypto payments allows e-Commerce merchants to tap into the 300+ million crypto users worldwide with high spending power.
  • Improved efficiency: Virtual asset payments enable near-instant settlement globally with minimal fees by eliminating slow and costly intermediaries like banks and payment gateways.
  • Robust security: Leveraging blockchain technology provides robust encryption, immutability, and decentralization—removing chargeback risks for merchants.

Challenges and Considerations in Adoption

Regulations and compliance

The regulatory landscape around virtual and digital assets is still evolving. Merchants must evaluate regulations in their jurisdictions and adhere to compliance standards like KYC for integrating crypto payments. WadzPay provides assistance in this respect.

Price volatility concerns

The price volatility of crypto assets poses risks. Instant conversion to stablecoins by payment gateways provides a workaround. WadzPay platform provides ready volatility management.

Integration with legacy systems

Integrating crypto payments with existing legacy finance systems can be tricky. To minimize disruption, payment gateways, and processors must provide easy API/plugin integrations. WadzPay’s set of API’s makes it very easy to integrate with existing payment gateways as just another payment method without requiring any large-scale changes.

Plugins and Integrations

To streamline the implementation process, WadzPay for e-commerce offers plugins and APIs for supporting interfacing payment solutions with existing e-commerce platforms. It also allows store owners to accept payments in virtual assets without redirecting shoppers.

WadzPay aims to deliver the next generation of digital commerce via efficient, transparent blockchain payments. Global interoperability across diverse blockchains, seamless fiat conversion, and security remain its core focus areas to achieve this goal.


Q1. What are the different virtual assets that can be used in e-Commerce?

Virtual currencies are a subset of digital currencies such as tokens and cryptocurrencies. The widely used virtual assets in e-Commerce include Ethereum, and stablecoins like USDT.

Q2. How is volatility managed for virtual asset transactions?

The virtual assets received by debit customer accounts is stored in the Merchant Wallet. If these payments are not in stablecoins, they are converted to stablecoins to prevent volatile currency rate fluctuations.

Q3. Who is likely to adopt Virtual Assets Payments in the e-Commerce sector?

The first wave of  e-Commerce players who would adopt Virtual Asset payments are those that promote big-ticket items similar to duty-free shops,  high-end electronics and branded goods, exotic travel sites and sites offering expensive memberships or selling concert or event tickets.

Disclaimer: *WadzPay is a B2B technology provider. All regulated activities featured in WadzPay are conducted by licensed entities in applicable jurisdictions.