Since adding cryptocurrency as a payment option in 2021, luxury watch reseller WatchBox has seen a surge in crypto payments. According to David Kaplan, chief operating officer, the retailer has received more than $10 million in cryptocurrency payments, which is a small percentage of its total $500 million in online sales.

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The average order value (AOV) for cryptocurrency-paid orders is $80,000, Kaplan says, though the median crypto transaction is $20,000, similar to non-crypto transactions. He adds that there have been several high-dollar transactions, as well as “normal run-of-the-mill” transactions of $10,000, $20,000 or $50,000.

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WatchBox sells its authenticated watches online and in retail stores, and ranks No. 264 in the Top 1000, Digital Commerce 360’s ranking of North American online retailers by web sales.

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Cryptocurrency processing charges are less than credit cards, but more than wire transactions. WatchBox uses third-party bitcoin payment services provider BitPay, which charges a fee of 2% + $0.25 for monthly transactions of less than $500,000, 1.5% + $0.25 for transactions between $500,000 and $999,999, and 1% + $0.25 for transactions of $1 million or more. Domestic outgoing wire transfer fees range from $0-$35, while international outgoing wire transfer fees fall between $35-$50, according to Bankrate.

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From a fraud standpoint, crypto is also a plus, Kaplan says. “Because as a [retailer], you’re on the hook for fraud,” he says. “If we get into a dispute with American Express, they almost always side with the client. The transactions are reversible. With crypto, once you have the money, you have the money.” BitPay takes on the risk, accepting the crypto payment and depositing cash into WatchBox’s account the next day.

Much of the crypto transactions are in digital currencies like Bitcoin and Ethereum, he adds.

‍Sources: https://www.digitalcommerce360.com/2023/04/11/watch-reseller-offers-cryptocurrency-at-checkout-to-entice-international-shoppers/