Recently, the crypto payment sector is booming, as the simultaneous popularity of cryptocurrency and technological innovation makes crypto payments more and more possible.
The chance to quickly and easily exchange money through crypto payments has made them a key feature of the Web3 revolution, as we explain here.
But what is the current trajectory of crypto payments and which trends are important to keep an eye on?
How is crypto impacting payments?
Crypto payments involve the sending of cryptocurrency to another person or entity, without the need to exchange said crypto back to fiat currency first. Crypto payments include a variety of options, including merchant transactions, direct debits, and peer-to-peer payments.
Crypto payments are a disruptive advancement in the payments space. Due to the rise of cryptocurrencies over the past few years, companies and consumers are increasingly looking for opportunities to integrate crypto into their spending. And as some companies are beginning to find innovative ways to offer crypto payments online and in-store, competing businesses and sectors are also looking to get on board and stay up-to-date with developing technologies.
Crypto payments are very desired among consumers. For example, Airbnb CEO Brian Chesky revealed that offering cryptocurrency payments was its most common customer suggestion in a recent poll. However, 67% of cryptocurrency owners think that there is a current lack of merchants accepting crypto payments. Merchants and businesses that have recognized this opportunity and introduced processes to accept crypto payments have seen success and increased loyalty from crypto enthusiasts in the past year.
During 2022, merchant acceptance of cryptocurrency payments has been on the rise. Though it remains generally low, interest from customers is driving investment and experimentation from businesses. It is expected that this will only lead to a further exponential growth of crypto payments and investment in cryptocurrency, as businesses seek to capitalize on crypto’s success.
Financial apps are also making greater use of crypto payments in 2022. Recently, PayPal and Venmo both began to accept crypto payments and transfers on their platform. PayPal has even stated that they will further expand the possibility for crypto payments across the blockchain, and Stripe is now the fastest growing payments startup, showing the desire among businesses to introduce crypto payment processes.
The popularity of crypto payments is also pushing more traditional card providers to introduce new processes to their typical models. For example, Visa and Mastercard are both looking into ways they can further integrate crypto payments into their services. Visa accepted $2.5 billion in cryptocurrency transactions in the last quarter of 2021, and this expansion of crypto into mainstream finance is only driving further investment and popularity in the crypto and crypto payment space.
Crypto payment use cases
Crypto payments can provide a quick and easy way for investors in crypto to off-ramp their funds, without needing to complete the long process of exchanging to fiat currency first. Holders of crypto can exchange their cryptocurrency directly for goods and services, at the exchange rates they see at the time, due to majorly lower processing times.
Innovation among traditional financial payments providers makes the use case of peer-to-peer payments much more viable within the crypto space. The chance to send crypto not solely to merchants, but to other crypto holders, is an important part of growing the capabilities and popularity of cryptocurrency as a legitimate financial system.
The influence that crypto has had on the international payments space is sweeping. The possibility to transfer currency without expensive fees, long processing times and complex currency conversions has led to great interest in crypto for international payments.
The crypto payment space has allowed a greater convenience to automated investing, allowing the easier movement of currency in and out of crypto investment funds at established times or intervals.
The possibility for crypto payments reduces the need for traditional current accounts at established banks, thus also removing the need to hand over large amounts of data and security to financial institutions. The growth of crypto payments makes it possible to have more independence and control over one’s finances.
Crypto payments with Hydrogen
While crypto payments can be a great way for any business to attract and maintain customers who are enthusiastic about crypto, introducing crypto payment processes can be complex, time-consuming, and expensive.
However, with the expert help of Hydrogen, any business can make crypto payments accessible and easy. With our no-code use cases and bundled orchestration, we will provide stress-free integration with little work needed on your part.
Contact us today to learn more about crypto and other bundled services.