Listen to the article
If you like stories like this, be sure to sign up for SUMO Heavy Insights, our monthly roundup of tech and retail news. Sign up here.
Crypto payment tools are becoming commonplace. PYMNTS recently collaborated with Bitpay to survey merchants to understand trends and consumers’ expectations regarding crypto payments.
In the report titled “Paying With Cryptocurrency,” analysts found that among businesses with an annual income of $1 billion, 85% are adopting crypto payments to find and gain new customers. Moreover, 82% of all the merchants who participated in the survey cited crypto-axing backend middlemen as their reason for accepting it as a payment method.
The survey also revealed that 77% of the surveyed merchants are more inclined to accept crypto payments because of lower transaction fees. According to the report, the fees for processing crypto transactions are around 1%. This is lower than the usual fees from 1.5% to 3.5% charged by typical payment options like credit cards.
A Long Time Coming
The crypto ecosystem has been in the process of expanding for quite some time. A report published by Cointelegraph Research in June showed that various companies from various industries have already integrated crypto payment options. Platforms like travel booking and other experienced-based entertainment methods have begun the integration process.
At the same time, Ben Caselin, an executive at trading firm AAX, told Cointelegraph that despite the unpredictable market, Bitcoin adoption and Metaverse development continues to advance. This is a prime chance for businesses looking to tap into the crypto ecosystem.
Also in June of this year, online payments company Checkout.com said it would settle payments for its merchants at all times using stablecoins, making it the last major financial services firm diving into crypto.
The platform is closely associated with competitors like PayPal. The company launched a feature that would allow businesses to accept and make payments in USD Coin, a popular stablecoin that’s pegged to the U.S. dollar. Checkout.com said it offers the new payment method through a partnership with the digital asset custody platform Fireblocks.
Jess Houlgrave, head of Checkout.com’s crypto strategy, said when describing how payouts could enable businesses to compensate workers in crypto and reduce associated transaction processing costs, “Today my options are limited to a bank transfer, which could take days and maybe becomes $80 [after fees],” she continued, “Imagine a world where you can do it with a stablecoin. Instantly, my wallet is not $100, but maybe $99.50.”
Checkout.com’s updates come just a few months after $95 billion online payments company Stripe began offering merchants the ability to make payouts in crypto through the stablecoin USDC.
Now, as we near the end of Q4, crypto has successfully maneuvered itself as a ubiquitous part of transactions in the back end. Recent trademark applications also show that Visa and Western Union might join the crypto craze.
What’s Next For Crypto Checkouts?
More recently, crypto payments in Circle’s USDC will now be offered for select businesses on Apple Pay. According to the crypto company, the payments will be enabled for quick checkout for regular digital payments mode. The payments will be app-based along with the ability to pay using the Safari browser. Customers won’t have to fill in their information repeatedly or fill out forms to use the feature.
According to a Deloitte study conducted earlier in 2022, 75% of retailers across the U.S. report that they’re making some kind of investment to support crypto payments over the next two years.
The growth of cryptocurrencies has been one of the dominant sources of discourse in the payments industry. While regular cash transactions will remain the preferred payment method for most shoppers, mainstream payment systems evolve to take advantage of crypto features. In the near future, crypto payments will work in tandem with typical payments. In the not-so-near future, crypto checkout will be as normalized as swiping a credit card.
More from SUMO Heavy on payments: