How NFT Checkout Helps NFT Marketplaces
NFT marketplaces are bustling hubs for the trade and exhibition of unique digital tokens. They have become the cornerstone of the current NFT economy, hosting a diverse array of digital collectibles ranging from art and music to virtual real estate and beyond.
The meteoric rise of NFT marketplaces has not been without its challenges. One of the most significant hurdles they face is making the NFT purchasing process accessible and intuitive, especially for those who are not well-versed in cryptocurrency and blockchain technology.
The complexity of crypto transactions, coupled with the nuances of digital wallet management, can act as formidable barriers, deterring potential enthusiasts and collectors.
Regular folks simply want to buy and explore NFTs while high-net-worth individuals don’t have the time to learn the ins and outs of blockchain only to invest a small fraction of their funds.
Enter NFT Checkout — a game-changer for NFT marketplaces.
Transak’s NFT Checkout is leading the charge in how NFT marketplaces operate. By integrating Transak, these marketplaces are simplifying the transaction process, allowing for the purchase of NFTs using familiar and widely accepted payment methods such as credit cards and debit cards.
This not only democratizes access to the world of NFTs but also opens the floodgates for a more diverse and extensive customer base.
In this article, we dive into how NFT Checkout helps NFT marketplaces by broadening market reach and scaling their operations.
Maximum Approval Rates In The Industry
As if streamlining transactions and fixing usability issues weren’t already significant hurdles, web3 platforms including NFT marketplaces, have to deal with disappointingly low approval rates for transactions made through traditional payment methods.
Conventional solutions in the market promise to get the job done but provide no context of how effective the solution really is. In many cases, the approval rates are lower than 55%. That’s half of all transaction attempts going to the bin!
The problem stems from the categorization of crypto transactions under Merchant Category Code (MCC) 6051, which is frequently perceived as high-risk by financial institutions.
Such transactions are often scrutinized more heavily, and in some cases, institutions like Bank of America may outright block them. This situation presents a significant hurdle in user experience, deterring potential buyers and impacting the marketplace's reputation and sales.
Transak's NFT Checkout, however, presents a groundbreaking solution to this challenge.
By strategically adopting a different MCC for NFT purchases, specifically MCC 5815 associated with less risky digital goods, Transak has remarkably improved transaction approval rates.
This shift from the traditional categorization under MCC 6051 to MCC 5815 has led to a dramatic increase in approval rates, reaching up to 95%.
Such high approval rates are not just a statistical triumph; they foster a positive user experience, encourage more transactions, attract a broader audience, and solidify the marketplace's reputation as reliable and user-friendly.
Simplifying Transactions for Broader Audience Access
While NFTs are frequently exchanged at high prices, popular ones often reaching five to six figures in USD, they remain largely inaccessible to the average person. This market is predominantly controlled by major investors, often referred to as "whales," making it challenging for everyday individuals to participate.
One significant barrier preventing the widespread adoption of NFT marketplaces is the complex and cumbersome process involved in acquiring an NFT.
Prospective buyers must navigate through a series of intricate steps:
- Understanding the specific blockchain involved
- Identifying the required cryptocurrencies for purchase and transaction fees (which can be different)
- Setting up a compatible digital wallet
- Funding this wallet
- And finally returning to the marketplace to complete the purchase
This convoluted process creates significant friction, deterring a broader user base from engaging with NFTs.
Transak’s NFT Checkout changes this by dramatically simplifying the purchase process.
The only requirement for the users to purchase NFTs from marketplaces that have integrated Transak NFT Checkout is to have a compatible wallet. They can then proceed to buy NFT directly with their credit or debit cards regardless of the cryptocurrency.
Cryptocurrency exchange, smart contract interaction, and transaction fee payment are entirely automated through the checkout — a win-win for the marketplace and the user.
Taking this a step further is Transak’s Lite KYC feature.
Lite KYC opens up the possibility for new non-KYC-verified users to buy low-value NFTs within 2 minutes. A perfect feature for new entrants who are testing the waters and marketplaces built for game NFTs.
Facilitating Impulse Buys and Casual Collectors
In a traditional consumer market, impulse buying accounts for about 40% to 80% of all purchases. If the same statistics were overlaid on the NFT market, NFT marketplaces could witness as many as 5x more purchases (assuming 0 impulse purchases to begin with).
For the most part, NFT collectors perform due diligence before apeing in on any collectible. At Transak, we are ardent supporters of thoroughly researching before making any financial investment.
However, spending hours on research is not the best use of time for people who intentionally want to perform some impulse NFT shopping and casual NFT collection, picking up some low-value tokens with their spare change.
In the absence of a streamlined process, these collectors have to push water uphill by jumping through the hoops of complex technicalities associated with blockchain technology.
Recognizing this gap, Transak introduced its NFT Checkout, which transforms the NFT acquisition process into a more familiar and enjoyable experience. With Transak NFT Checkout buying NFT from any marketplace is as simple as buying your favorite ebook from a popular e-commerce store.
This innovation aims to bridge the gap between the intricacies of blockchain transactions and the user-friendly interface of conventional e-commerce. That is how the journey of buying and collecting NFTs is more accessible and pleasurable for all types of collectors.
By dismantling the technical barriers and complex transactional processes associated with NFT purchases, these solutions are pioneering a new era of accessibility and ease in the NFT marketplace domain.
The integration of Transak's NFT Checkout is a watershed moment for these marketplaces, enabling them to cater to a diverse audience beyond the traditional crypto-savvy community.
With approval rates soaring as high as 95% thanks to strategic MCC categorization, marketplaces can now offer a reliable and frictionless buying experience.
Transak's NFT Checkout is a catalyst for change in the NFT marketplace landscape. By enhancing user experience, ensuring higher transaction approval rates, and democratizing access to digital collectibles, it empowers marketplaces to expand their reach and scale their operations.
As NFT marketplaces continue to evolve and grow, integrating solutions like Transak's NFT Checkout will be key to unlocking their full potential, and catering to a global audience.