What started off as a technological experiment championed by tech geeks and Reddit threads, crypto has evolved to become one of the most revolutionary technologies of the 21st century. More and more companies from all sectors are exceedingly tapping into the crypto revolution by utilising crypto payments. And mark you, this is not just hype; it is real growth. According to a report in 2022, approximately 16,000 venues around the world were accepting crypto payments. This included major brands like Microsoft, AT&T, AMC Theatres, Whole Foods, etc.
In the current world, speed, convenience and options are what many people are looking for when it comes to making transactions. Now, cryptocurrencies, in all their glamour, offer all that on all fronts. And do not despise meme coins like Shiba to be just internet hype. When you check the Shiba Inu price INR exchange news, you’ll just realise how much the token is flowing up among financial communities across India. Interestingly, it is not India alone but all over the globe.
Now, let’s explore in detail how exactly crypto payments are actively driving business developments and why it might be the smartest move that any business makes.
Breaking borders and building opportunities
One of the most exciting things about crypto is its borderless nature. Whether your customers are in New Delhi, Lagos, Iceland or Las Vegas, crypto offers an intermediate way where friction is reduced when you are receiving payments. For so long, global commerce has been tied to banking bureaucracy, which involves lengthy delays, international wire fees, third-party approvals and currency conversions. Crypto has completely disrupted that.
Crypto is not like fiat currency, which dictates what geographical location can be reached by what currency. It levels the playing field. The time that it would take you to send Bitcoin from Brazil to Brisbane is the same exact time that you would take if you were sending some tokens to your friend in the same house. It just takes minutes, if not seconds. You do not have to wait for certain banking hours or convert currencies or intermediaries that make everything go slower.
By 2024, there were over 560 million crypto users all over the world. In fact, Statista estimates that there might be at least 861.6 users by the end of 2025. Now, a 2023 study by Deloitte found that 93% of global businesses that accept crypto reported a positive impact on customer metrics. Additionally, cross-border payments using blockchain are increasing as the days go by, with Statista estimating that by 2025, the number of cross-border transactions of blockchain will reach 745 million in the Asian market. When you look at these statistics, you can just see how crypto is really breaking international barriers.
Tapping into a modern-tech savvy audience
If there was a generation that is driving the growth of future businesses and payments, it would be the Gen Zs and Millenials. Actually, this group of people hold the majority of the world’s workforce and consumer base. Over time, this group of people has changed how we perceive value, make purchases and what they support from the brands they support. Actually, according to recent statistics, 42% of Gen Z investors reported being owners of crypto, while 36% of millennials follow this trend. Well, reports have shown that this group of people are most likely to engage with brands that offer new technologies, including NFTs and crypto.
Now, until recently, only a few luxury brands had ever experimented with crypto payments. However, the soaring value of Bitcoin has caught the attention of these brands, and they are now aiming to take advantage of these tokens. Andrew O’Neill, digital asset lead analyst at S&P Global Ratings, when speaking to Reuters, said that offering crypto payments is one of the ways that brands can brand themselves as innovative.
Well, Gregory Boutte of Kering said that the reason they were embracing this technology was to reach the younger tech-savvy clientele. In fact, many luxury labels have had their eyes on shoppers from the tech industry and have been setting up stores in upscale Silicon Valley malls. All this just shows how much reaching the tech industry is important to businesses.
Cutting down on transaction speed and fees
One thing that is usually a huge bother to business transactions, especially international ones, is the speed of closing deals and making payments. In fact, DepositFix reveals that 73% of international companies prioritise payment speed when it comes to cross-border transactions. Additionally, more businesses are increasingly favouring real-time cross border payments with the B2b sector increasing the yearly adoption by 20%.
With crypto technology, transactions are made almost instantly. Cryptocurrencies like Solana and Cardano are actually leading this charge, being known for being really fast in accomplishing transactions. Businesses are increasingly running away from traditional forms of payment, like direct bank transfers, which take a number of days to complete. In case of delays due to errors, these transactions can take even weeks before you can make your transaction complete.
On another front, crypto has reduced the cost of transactions since it removes the number of middlemen involved in transactions. For example, the use of credit cards for transactions can cost you between 4% and 6%, while crypto transaction fees are always below 1%. At the end of it all, you realise that the more you use crypto, the higher your profit margins.
In conclusion, we cannot refute the fact that crypto is helping businesses grow. By opening up borders and making transactions faster and cheaper, businesses are seeing new light. Also, the use of crypto is making businesses more appealing to the tech-savvy generation, thereby increasing the opportunities for growth.