Cryptocurrency occupies the big headlines around the world. People are talking a lot about Bitcoin lately. Some believe it could become worth $100,000. Others are interested in the future of crypto adoption. Obviously, buying and selling cryptocurrencies is thriving. However, due to their volatile value, the chances to spend cryptos still need to be improved. Today, we will explain why companies adopt crypto payments, and also mention some cryptocurrency adoption insights.
The Reasons Businesses Adopting Crypto Payments
Many business owners and investors embrace the idea of adopting cryptocurrency payments. This way, companies will stand apart from the others in the crypto market. Here are the main reasons behind this growth:
1. Saving Money
In the USA, merchants have paid billions in credit and debit card fees. The good thing is that cryptocurrencies are decentralized. This technology doesn’t require verification in each transaction. As a result, they saved around $78 billion. More people are trying to increase their crypto(currency) adoption rate. Companies are starting to avoid paying high fees to governments or private organizations. PayPal saved 2-5% on each transaction thanks to the adoption of cryptocurrency.
2. No More Fraud or Chargebacks
What is amazing in crypto is the irreversibility of transactions. Companies are now protecting themselves against fraud. Scammers can’t cancel the transaction. Once a buyer completes the transaction, it is impossible to cancel it. So, there is no way to request a refund after receiving the product/service. On the other hand, the crypto payments system is different from the traditional one. When you pay with Bitcoin, it’s only possible to spend what you have in your digital wallet, which is not the case if you pay with fiat. Banks give you privileges to pay for things you can’t afford, trapping you with credits and interests.
3. Find New Clients
How many people own cryptocurrency in the world? Crypto is one of the popular trends that attracted 420 million users in 2023. Followers are more curious about the newest investment solutions. Many are turning to wealth management companies to manage their digital assets. Most companies believe that crypto mass adoption is a real marketing opportunity. That’s why they are using it to gain additional market share. The more payment alternatives a business provides, the better. This way, it will attract more clients and sales.
Benefits for the Business
Compared to POS transactions, which is a traditional payment with cash or card, some companies now accept crypto as a safe and secure alternative. Among the advantages that attract large companies to use crypto, one can distinguish the following:
- Fewer Transaction Fees – The decentralized payment process reduces transaction fees. When customers use crypto, businesses don’t have to pay as much extra money as they do with credit cards. That means companies can save money—no need to pay 2-4% and 25 cents for each payment by credit card.
- Increasing Sales – According to the global crypto adoption index, cryptocurrency helps small projects to grow. Companies can get new clients around the world. Now, there are no boundaries for promoting products or services. The doors are opened globally.
- Seller Protection – Many platforms use Bitcoin to protect themselves against scammers. The decentralized setup helps businesses to protect themselves from fraud and chargebacks. As I explained at the beginning of the article, the transactions are irreversible.
Popular Brands Adopting Crypto as a Form of Payment
As we know, more and more companies believe in the future of blockchain technology. Here’s a list of popular brands adopting crypto payments:
In 2014, Microsoft became an early adopter of cryptocurrency payments for its games and applications. They stopped accepting crypto due to price volatility but kept it for their Xbox store. Microsoft also created Azure Blockchain Service to help their app developers.
The company encourages crypto adoption among consumers. They included a range of cryptocurrencies, such as Bitcoin and Ethereum, as payment methods. This way, people will only pay lower fees than credit card transactions. However, the “Checkout with Crypto” feature is not available worldwide. So, the crypto adoption curve of PayPal has room for improvement.
Elon Musk founded Tesla, and the company promotes cryptocurrencies like Dogecoin and Bitcoin. Musk once said you could buy a Tesla with Bitcoin, but the company has blocked Bitcoin transactions. They required that at least 50% of BTC mining use renewable energy resources.
Cryptocurrencies have been growing in popularity recently, especially over the past year. With more and more businesses accepting cryptocurrency payments, the future looks bright. Bitcoin will one-day rival fiat currencies like the dollar and the euro in a legal way. Moreover, we can expect new crypto security features in the future. Despite the considerable number of users, there is a need to update the security and privacy features. It will help to avoid any possible hacking attempt. Overall crypto has the power to change our lives; people can use it in different ways. Firstly, it can be instrumental in places where the traditional monetary system is not adopted. Second, when you want to keep your database secure. Finally, crypto payments help to reduce the high processing transaction fees of credit cards.
Can I cancel a transaction and access my funds?
No. Hence, it is essential to carefully check the cryptographic address of the person to whom you want to send Bitcoins. Making the slightest typing error will lead to losing the funds forever. According to Chain lysis, an American company expert in blockchain analysis, between 16.4% and 22.4% of circulating Bitcoins have been lost.
Why is the Bitcoin system described as safe and transparent?
Miners’ computers are the shield that protects the network from cyberattacks. If we wanted to falsify the blockchain, we would have to bring together more than half of the cumulative computing power of all these machines at the same time, requiring the ownership of a huge fortune. So far, no hacks or risks have been reported.