Do you sense it? The cryptocurrency shift? Scanning the recent news and retail blogs makes it pretty clear that crypto is not only here to stay, but cryptocurrency payments may change the retail space in some big ways.
With major retailers already accepting cryptocurrency and cryptocurrencies becoming more mainstream, with wider adoption rates, it’s only natural for business owners to start wondering when it’s the best time to get in on the technology and leverage the interest and potential in their favor. Cryptocurrency payment popularity is growing, and much like payment apps were 5-10 years ago, will be mainstream before we know it. Understanding how it can benefit you, your business, and your customers, may help you decide when, and how, to enter the cryptocurrency payment market.
- What are Cryptocurrency Payments?
- Cryptocurrency Payment Growth in Retail
- 4 Big Benefits to Retailers Accepting CryptoCurrency
- How PayBolt Payments are Different for Retailers and Consumers
What are Cryptocurrency Payments?
Cryptocurrency payments are transactions that enable or facilitate the use of cryptocurrencies for commercial exchanges. Retailers and businesses, through apps and integrations, can accept cryptocurrencies for goods or services, retaining the crypto or converting it to fiat. Cryptocurrency payments require a payment gateway provided by a cryptoprocessor who helps handle the transfer.
Cryptocurrency Payment Growth in Retail
As we said, crypto adoption is surging. 2021 saw an 880% growth in crypto adoption globally. That growth was predominantly among peer-to-peer (P2P) exchanges and transfers, especially in newer markets. However, even in markets and regions where adoption rates were high before 2021, the trend is continuing, though perhaps not as explosively.
While P2P is exploding, that doesn’t mean there hasn’t been significant growth in the retail market or the volume of crypto transactions. In fact, at the start of 2021, cryptocurrency transactions in the retail space totaled $10.2 million in the first quarter, 90% higher than the end of 2020. Interestingly enough, a good chunk of the $10.2 million was in big transactions. When it comes to the size or value of the transaction, those are up a remarkable 73%.
As far back as 2017, there began to be considerable growth in the number of retailers accepting cryptocurrencies for payment. Just a year later, experts speculated that one of the primary issues holding crypto adoption back was that there simply wasn’t a way to spend digital currency. Once major retailers began offering it as an option, including integration in eCommerce platforms like Shopify and Square, adoption rates among both consumers and retailers began to grow more steadily.
As for 2022 and beyond? Many experts are beginning to count on the fact that cryptocurrency and cryptocurrency payments will continue to expand, including more and more retailers as consumer adoption sustains its growth. With 22% of adults who have not previously owned crypto expected to invest or purchase a cryptocurrency over the next year, marketers suspect that retailers willing to evolve and get in on the crypto action are likely to reap rewards.
4 Big Benefits to Retailers Accepting CryptoCurrency
While attracting consumers who have bought into the crypto ecosystem can be, in itself, a boon to business, there are other more substantial benefits for businesses and retailers accepting cryptocurrencies.
Increased security– Credit card transactions, by their very nature, present security concerns for consumers and retailers alike. Point of sale and credit card terminals are vulnerable to malicious actors in any number of ways as are online transactions. In contrast, cryptocurrency payment gateways transfer tokens from a customer directly to the retailer’s account, almost instantaneously, with no opportunity for interception.
Increased speed- As mentioned above, crypto transactions happen with remarkable speed. There’s no waiting for processing, pre-approval stages, or settlements. The tokens are transferred at the time of the transaction.
Lower transaction fees- Credit card transaction fees are set by credit card companies and can range from 3-5%. Those fees bite into retail revenue. In fact, you may have been in a shop or two that doesn’t accept certain credit cards because the transaction fees are too high. However, with crypto, the crypto payment processor sets the fees and they’re often significantly lower.
No chargebacks- Unlike credit cards, because crypto payments require the crypto owner to have a private key or password, fraudulent transactions are next to impossible, reducing the risk of chargebacks. This means simple and seamless transactions and no hassle from companies looking to resolve disputes.
These are all amazing benefits for your business, cash flow, and revenue. Again, it’s worth noting that simply accepting cryptocurrencies puts you in a unique position to accept payments from anywhere in the world, and the rewards that come from using a payment method that is sure to continue its growth.
How PayBolt Payments are Different for Retailers and Consumers
It’s clear to see at this point that crypto payments are gaining traction and hold a lot of promise for both consumers and retailers. And, as that market grows, more and more businesses will enter the space, providing everything from exchanges and crypto wallets to tokens and crypto payment applications and processing. In a few years’ time, cryptocurrencies will be ubiquitous and fighting for your business like credit card companies do today.
So how do you know, today, what crypto payment processor to go with? You choose the processor who’s looking to disrupt the space, offer something new, reward its customers, and offer payment processing services for cryptocurrencies that let you leverage and enjoy all the benefits of accepting crypto payments. If you’re ready to talk to that company, get in touch with the PayBolt team today and let’s talk about how we can create retail solutions for the coming crypto future.