It’s no secret that the ways companies interact with cash are changing. Since COVID, in particular, cashless transactions are significantly more common, and many consumers simply don’t carry cash as a result. But there’s a budding financial change that’s been around for a whole lot longer than that, and it comes in the form of accepting cryptocurrency payments.
While there was some controversy as to whether or not crypto payments for businesses were a good idea some years ago, the consensus now seems to be that they’re not only wise, but also essential as we move forward. Why? Because cryptocurrency is quick, cost-effective, and undeniably tempting for consumers and companies alike during current financial difficulties.
The ability to accept payments for less outlay is especially tempting to brands that face ever-escalating running costs. But why exactly is across-the-board cryptocurrency payment suddenly looking so likely for financial forecasts? Keep reading to find out.
Reason 1: The Numbers Speak for Themselves
Statistics continually point to the rising relevance of cryptocurrency acceptance, with nearly two-thirds (65%) of consumers now stating that they would like to make crypto purchases. While cryptocurrency values have remained largely hypothetical or investor-tied until now, 80% of consumers show a particular interest in everyday crypto purchases, including bills and retail consumer goods. In other words, how we’re using cryptocurrency is changing, and companies need to change along with it to ride that trend.
It’s therefore hardly surprising that Capital One states as many as 75% of merchants plan to start accepting crypto in the next 24 months. And, it looks like they could benefit from doing so. While average consumer purchases, especially those on luxury or non-essential items, are currently on a downward slope, the same doesn’t seem to be true for crypto spenders, who will often have purchase amounts twice those of credit card users. In other words, competitive advantage and the chance for sizable returns are both set to become fully entwined with crypto acceptance pretty soon.
Reason 2: Plenty of Merchants are Already Doing it
Competitive advantage is everything when it comes to success, and it seems that cryptocurrency payments are soon going to become key. Already, countless high-level merchants, including Microsoft, IKEA, and Starbucks, are accepting crypto payments as standard. And if Capital One’s recent findings are anything to go by, they won’t be the only ones for long. In fact, even small businesses are soon set to join the crypto ranks.
Luckily, the rising prevalence of everyday cryptocurrency payments means they’re becoming a lot easier to accept. Crypto payment solutions are now affordable and wide-reaching, while options like EAAS (explorer-as-a-service) blockchain explorers make managing crypto transactions feel like a walk in the park.
But there’s also a flipside to all of this – the more brands that bring crypto payments onboard, the more damage it’s set to do to merchants who don’t show the same initiative. In fact, within a few short years, the growing prevalence of cryptocurrency payments for every purpose means companies that don’t offer this benefit could soon start to struggle. And it’s no surprise, considering that cash transactions cost more to conduct and process, as well as being generally less convenient for modern consumers.
Reason 3: The Risk of Profit Stasis
Following directly on from that, there’s a significant risk of profit stasis for companies that leave cryptocurrency in the dark. While it might seem like sticking with card and cash transactions is beneficial to financial journeys right now by sticking with the same software, etc., cryptocurrency adoption is the fastest-growing financial trend of the moment, and is set to be approximately 12.5% from 2023 to 2030.
Getting ahead during these early adoptions of cryptocurrency payments is the best way for retailers and other merchants to set themselves above the competition, enjoy higher returns early on, and grow everything from their demographic to their customer return rates. All of which can keep profits moving in the right direction. That definitely won’t be possible by sticking to traditional, and currently unprofitable, transaction methods.
Reason 4: Security is a Growing Concern
62 million Americans experienced credit card fraud last year, and that isn’t a standalone statistic. Financial scams have also increased a great deal in the last few years, meaning that consumers are at risk of losing significant amounts of money from one ill-advised purchase. This is especially true in an age of big data, where even the best security precautions don’t protect company-stored customer data from big breaches. Decentralized payment options like cryptocurrency could be the best solution.
That’s because blockchain technology is secure by nature, especially when brands use blockchain explorers to fully understand encrypted transaction ledgers in detail. While crypto fraud does arguably still exist, it’s significantly less likely, as fraudsters would need access to a user’s personal key. For merchants, however, fully transparent, decentralized sales mean that there’s practically no risk of in-house security breaches bouncing back onto customer finances of this nature.
Reason 5: That Global Growth Thing
International expansion is now the key to unlocking major business growth, but it comes alongside notable operational setbacks, especially where funds are concerned. Trading in different currencies is especially problematic for companies that may lose either money or customers trying to accommodate different markets. Cryptocurrency, which holds the same value internationally, could make everyone’s lives a lot easier.
The main problems companies face financially when expanding are those of cross-border transfer fees or currency exchange issues. These can add up if you’re trying to reach a mass international audience, and they’re issues that you’ll often end up shouldering alone. But, cryptocurrency simplifies the entire process, making it far easier to accept payments across borders with ease.
Conclusion
The acceptance of cryptocurrency payments is only growing in appeal for companies looking to boost their financial forecasts, and getting ahead is the best way to tap into those benefits early on. Whether you’re seeking international audiences or you simply want to gain a competitive edge over other industry big players, you could certainly benefit from letting cryptocurrency in sooner rather than later!