We all see them in the media. Crypto is everywhere. International transfer settlement, crypto trading for those entering the finance world, becoming a fiat currency (as in El Salvador), everywhere.
Crypto is the next big thing that will disrupt all businesses in all industries? Well…is it the next big thing? Or can we consider that we are already surfing its first wave?
Let’s spend some time today talking about crypto payments. What are they? What are the benefits versus cash and credit/debit cards? And to end: what could be the risks of not approaching a good crypto payment strategy for my business?
What do we speak about when talking about crypto payments?
Many individuals and companies hold cryptocurrencies. Some others mint, mine, or stake in crypto. Some others trade them for profit. The top 3 crypto assets (Bitcoin, Ethereum, and BNB) hold a circulating value of 1.3 trillion US dollars as of April 6, 2022, while stablecoins following the US dollar (as USDT, USDC, BUSD, or UST) are significantly more traded, showing the usage of crypto for new aspects.
Crypto payments are on the rise due to many factors. On one side, we have more individuals accessing, trading, using, holding, or investing in crypto. So, the demand for adding more case uses for these assets exist. On the other side, merchants are suffering from increased fraud, increased processing costs from the major credit card schemes, and increased regulation in the available markets. Therefore, crypto payments might appear as an alternative -still being a complementary option- payment method for their customers and to attract a new type of customers.
For some companies, cryptocurrency daily fluctuations generate risks, but there are options where the company offers crypto payments to their customers while still receiving your funds in a fiat currency or in a stablecoin. Also, similar risks exist when offering multi-currency payments in the credit/debit card world.
Who is using crypto payments currently?
The list of companies offering crypto payments to their consumers is long and increasing day by day. Surprisingly, the list not only includes B2C merchants but also big global payment schemes such as MasterCard which is developing its own program ‘Start Path Crypto’ to add more and more crypto wallets to it where funds are converted to a fiat currency before generating the payment to the merchant.
At GlobalTask we have been instrumental in the implementation of crypto payment features for one of Mexico’s biggest retailers. By using QR codes on the checkout page, the shopping cart can be paid with the consumer’s BTC wallet, opening the way to an increased wave of consumers with a preference for these assets instead of banking assets.
Other companies allowing crypto payments include Microsoft, Tesla, Starbucks, and AXA Assistance.
How to increase the consumer’s payment choices with a lower cost of processing
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