As of 2024, global cryptocurrency ownership rates have increased to an average of 6.8%, with over 560 million crypto users worldwide. This is a significant rise from 420 million users as of 2023, demonstrating substantial adoption growth (Triple-A). Cryptocurrencies have evolved from a niche investment to an accepted payment method for goods and services today. This shift is driving interest among businesses to incorporate crypto payments into their operations. So let’s analyze this trend in more detail and the reasons why many merchants are increasingly considering accepting crypto as a payment method.
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The Rise in Crypto Payments
Crypto payments are predicted to grow at a compound annual growth rate (CAGR) of nearly 17% between 2023 and 2030 (Statista). This is driven by a variety of factors, including increasing consumer interest, technological advancements, and broader acceptance of cryptocurrencies.
Both merchants and consumers have grown more knowledgeable about crypto and confident in using it as a payment method. Global surveys indicate a high level of awareness about cryptocurrencies, with 92% of respondents out of a survey of 15,000 people in 15 countries across all continents stated they “have heard about them” (Consensys 2023).
A survey by Arlington Research for Kaspersky revealed that almost half of respondents (44%) believe that crypto payments will become a common choice for online shopping. Nearly 1 in 4 people would buy their groceries with crypto, 81% of gamers would use it to pay for game-related purchases, and 36% would use crypto to pay for dining and entertainment tickets.
Furthermore, 68% of surveyed people stated they want more opportunities to use crypto for payments, from video games (59%) to groceries (39%) to cars (32%). This shows that more people are open to using crypto for everyday purchases, signaling a possibility for merchants.
Stablecoin Payments: A Growing Trend
In recent years, stablecoins have emerged as a compelling alternative to traditional payment methods, with major names like PayPal and Visa integrating them. Unlike more volatile cryptocurrencies like Bitcoin, whose price can swing dramatically, stablecoins are pegged to real-world assets, offering stability that appeals to traditional investors and businesses. Bernstein analysts noted in their latest report that just Q1 2024 value transferred stands at $6.8 trillion, nearly matching the 2022 high of $7 trillion. Stablecoin transactions are expected to exceed $187 billion globally by 2028 (Juniper Research). This trend highlights the growing preference for stablecoins in facilitating transactions between businesses and customers.
Challenges and Benefits of Using Crypto for Payments
While the buzz around crypto is growing, its adoption as an everyday payment method is still not mainstream. Major obstacles include:
Despite these challenges, the crypto payments industry is evolving, more crypto-friendly businesses and eager consumers are emerging. Benefits of crypto payments are significant:
Accepting Crypto Payments as a Business
Cryptocurrencies can offer businesses a number of benefits when accepting them as a payment method:
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Getting Started with Crypto Payments
As we can see, there are many benefits for merchants that enable crypto payments for their customers. These include meeting customer payment preferences, settling funds fast, lower processing costs compared to cards. With the rise of cryptocurrencies, businesses are presented with a new opportunity to cater to a rapidly growing demographic of crypto-savvy customers.
Why Merchants Choose SwapinCollect for Crypto Payments?
If you’re considering integrating crypto payments and are looking for an easy way to do so, SwapinCollect offers a great solution. Here’s how:
Frequently Asked Questions (FAQs)
Q: How many businesses accept Bitcoin?
A: While it is difficult to get an accurate global total, around 30,000 merchants worldwide currently accept Bitcoin. Well-known brands includePayPal, Microsoft, Shopify, Starbucks, Twitch, Subway.
Q: What are the benefits of accepting cryptocurrency?
A: There are many benefits for merchants, including meeting customer payment preferences, settling funds fast, and lower processing costs compared to cards.
Q: What are the risks of accepting cryptocurrency?
A: Risks include price volatility and navigating an inconsistent regulatory environment. Stablecoins are becoming popular for payments because they provide greater price stability.
Q: Can small businesses accept crypto?
A: Yes, any size business can accept crypto payments. Many crypto payment processors like Swapin offer solutions tailored to small businesses, making it easy to start.
Q: Can my business have a crypto wallet?
A: Yes, businesses can have custodial or non-custodial wallets, depending on their needs and how they prefer to manage their assets. We have a guide on choosing a crypto wallet here. Swapin is a non-custodial solution, so we don’t hold your funds, we immediately process payments for you.
Wrapping Up
Cryptocurrencies are forecasted to become a mainstream payment method in the future, driven by their advantages in speed, cost, and accessibility. While challenges remain, particularly around regulations, the benefits for both consumers and businesses are substantial.
For businesses looking to accept crypto payments, SwapinCollect provides the tools and support necessary to make this transition smooth and secure, enabling businesses to tap into the growing market of crypto users and drive growth.
Learn more about SwapinCollect here.