As the digital realm expands at the speed of light, crypto payments quickly win new ground. Hence, many businesses have embraced the trend to meet the demands of as many customers as possible. In short, they resort to innovative solutions allowing them to serve buyers fast, securely, and transparently.
Considering that approximately $112 billion get traded in cryptocurrency daily, it’s no wonder that merchants should accept crypto as payment. Over 18,000 small, medium, and large enterprises have installed a crypto payment system. And while cryptocurrency ownership is rapidly growing, consumers gradually switch to using crypto funds to purchase goods and services online.
This article explains the upward journey of cryptocurrencies and reveals the most popular digital assets today. It also lists why merchants should accept crypto as payment and the benefits this novelty brings to their companies.
When Did Crypto Go Mainstream?
Though the penetration of crypto among the broader masses was gradual, some years were critical for its value. The revolution began in 2020 when PayPal started supporting four cryptocurrencies. Moreover, institutions stocked up on Bitcoin, and banks acknowledged the trend.
Others would agree that 2021 was the year cryptocurrencies went mainstream. In the first half of 2021, the number of users doubled, and the total crypto market cap exceeded $3 trillion. Today, 55 of the 100 dominant financial institutions invest in cryptocurrencies and blockchain. Another striking fact is that 5% of the venture capital investment in the US went into crypto in 2021.
Mainstream adoption doesn’t rely on retail traders only. Publicly listed companies, governments, and institutions also include crypto in their balance sheets. Even smaller firms see their profits multiply when they accept crypto as payment. Undoubtedly, 2021 was a banner in the global economy transition to digital assets on the blockchain.
Which Cryptos Are Used For Transactions The Most?
Currently, the number of cryptocurrencies exceeds 20,000, with Bitcoin at the top. However, not all listed assets are active or valuable. If we disregard the “dead” cryptos, above 10,000 are active, of which about 2,700 have a measurable market cap. Overall, Bitcoin, Ethereum, and Tether dominate the industry.
Bitcoin (BTC)
Besides being the pioneer in blockchain-based assets, Bitcoin remains the flag bearer for 2022. Known as ‘digital gold,’ Bitcoin has been a deflationary digital currency from the start, with a constantly growing value. Today, BTC takes the largest crypto market share, with over 40%. Its current market cap stands at $386 billion.
Ethereum (ETH)
Labelled as the second most valuable cryptocurrency by market cap (over $166 billion), Ethereum is ideal for smart contracts. ETH commands about 20% of the global crypto market and is home to decentralised applications used in promising sub-sectors, such as DeFi, NFTs, and the Metaverse.
Tether (USDT)
Contrary to other cryptocurrencies, Tether (USDT) is a stablecoin (backed by fiat currencies). Thus, it hypothetically keeps an equal value to the selected denomination. As a result, Tether’s value remains more consistent, urging investors wary of volatility to choose this digital asset. Currently, USDT’s market cap is above $68 billion.
Business Crypto Leaders
The range of companies that accept crypto as payment is increasing. Managers and owners of start-ups, SMEs, and multinational corporations have decided to take the plunge. Here are a few market giants from various sectors that started taking Bitcoin and other cryptos for their products.
- Microsoft lets Bitcoin users top up their Microsoft accounts. Though it halted its cryptocurrency acceptance, the company quickly resumed the service for the Xbox store credits.
- Wikipedia accepts donations in Bitcoin, and the payments go through BitPay.
- AT&T is the first US mobile carrier to offer customers a cryptocurrency payment option.
- Home Depot accept crypto as payment via Flexa’s checkout systems. Whole Foods took the same route.
- Overstock partnered with Coinbase to allow Bitcoin payments for online furniture orders. It takes several cryptos and is a leader in the industry.
Why Should You Accept Crypto As Payment?
As blockchain technology quickly evolves, the benefits of using crypto for daily purchases amass. Here are five reasons why every business should instal a cryptocurrency payment gateway.
Negligible Processing Fees
Unlike credit card payments and wire transfers, crypto payments involve fewer transaction fees. Hence, hiring a crypto payment processor will help you save in the long run. You can reinvest most of your profits thanks to the lower rates rather than wasting them on processing charges.
Swift Checkouts With No Chargebacks
The checkout queue is long behind because crypto payments ensure fast payment processing from digital wallets. Moreover, the transaction is irreversible, so no chargebacks are possible if you accept crypto as payment. E-wallets enable the payment to go forward only if the account contains sufficient funds.
Secure And Private
Paying with crypto means your and your customer’s financial and personal data remain protected. Moreover, cryptocurrency payment gateways for e-commerce businesses ensure a high-security level. As a result, fraudulent mishaps are almost impossible. You’re also running a lower risk by avoiding crypto volatility.
Boosted Sales
Opening your company to the crypto revolution will pamper new customers. Buyers appreciate when merchants introduce innovative solutions, so this is your chance to shine. Also, people used to buying goods in crypto will put your company on their map if you let them pay in their preferred method.
Global Operations
With over 300 million people owning cryptocurrency globally, it’s pivotal to consider accepting crypto payments. So, why not use the opportunity to attract customers from other countries? This way, you can expand your business horizons and generate more sales and revenue.
NextHash Helps Your Business Accept Crypto
If you plan to accept crypto as payment, you will need a reliable cryptocurrency processor. This is where NextHash can help. Our professional team provides crypto payment processing services and enables you to take various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
Our system facilitates the instant conversion of crypto into the fiat currency of your choice. Hence, it’s up to you to decide whether you’ll keep the payments in crypto or centralised currencies like the Dollar. Finally, we take pride in reasonable rates for our services and 24/7 customer support.