Cash News
Video killed the radio star, but could cryptocurrency payments kill credit and debit cards?
Even though bitcoin hit a record high this month, the chances are likely slim.
However, with one of President-elect Donald Trump’s businesses, Trump Media & Technology (TMTG), reportedly eyeing getting into the crypto payments game, shopping with crypto is increasingly for more consumers than digital asset diehards and technophiles.
Plus, with the holiday shopping season officially here, many consumers are interested in exploring what they can buy with crypto, while merchants and businesses are navigating the complexities of accepting it as a payment mechanism.
Crypto payments are instant, which means no more pending transactions. For online marketplaces, these payments can help enable streamlined cross-border purchases.
As regulations tighten and tech improves, observers hope that crypto payments may move beyond a novelty to a mainstay in retail and online commerce. In a testament to the changing tides of commerce, crypto payments are already making inroads in B2B.
Read also: What Can Shoppers Buy With Crypto?
What Consumers Can Buy With Crypto
In its early days, cryptocurrency was primarily used for speculative trading or as a store of value. Today, it’s becoming more versatile. Thanks to expanding merchant acceptance and dedicated payment processors, crypto holders can use their assets to purchase a variety of goods and services, ranging from food, airline tickets, jewelry, cars and houses.
Global eCommerce giants like Overstock and Newegg have been pioneers in accepting crypto. Shopify merchants can integrate crypto payment options through platforms like Coinbase Commerceenabling consumers to use their digital wallets for everyday purchases.
Luxury goodsfor example, have long been a staple of crypto payments. Brands like Rolex and Ferrari have embraced the ability to allow customers to buy luxury watches and cars with bitcoin or ethereum.
To streamline and simplify crypto transactions, platforms like BitPay are increasingly partnering with merchants, such as Ralph Lauren, AMC Theaters and New York’s Metropolitan Museum of Art. Charitable organizationssuch as the American Cancer Society and American Red Cross, take crypto donations via BitPay.
See also: Crypto Is Minting Millionaires, but Its Payment Utility Remains Uncertain
Opportunities and Challenges for Merchants
The adoption of crypto as a payment mechanism is part of a larger shift toward the digital transformation of payments.
Earlier this month, cryptocurrency exchange Coinbase acquired the Utopia Labs team to accelerate its onchain payments roadmap within Coinbase Wallet.
“Together, we’ll create a future where individuals and businesses large and small use onchain payments to make their lives better every day,” Jesse Pollakhead of Base and Coinbase Wallet, said at the time.
At the start of November, payments acceptance provider Ingenico launched a partnership with Crypto.com. The new collaboration will bring cryptocurrency payments and merchant services to users of the Ingenico platform, letting merchants around the world accept crypto payments.
In September, Mercuryo launched a euro-denominated debit card that allows users to spend bitcoin and other cryptocurrencies directly at over 100 million merchants using Mastercard’s network.
“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Solana Foundation Head of Payments Sheraz Shere told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”
Read also: Blockchain’s B2B Dreams Start With New Crypto Regulations
Crypto payments are still new territory for many consumers. Businesses should clearly communicate the steps involved, including which cryptocurrencies are accepted and any applicable fees. Offering educational resources or support channels can ease customer adoption.
As crypto adoption grows, staying informed about regulatory changes is also something that could be crucial for consumers and merchants.
“The main barrier to widespread stablecoin adoption outside of the crypto ecosystem is the lack of regulatory frameworks,” Tony McLaughlinemerging payments at Citi Servicestold PYMNTS this month.
Additionally, the PYMNTS Intelligence report “Blockchain’s Benefits for Regulated Industries” found that blockchain technology, the fundamental technology underpinning cryptocurrencies and digital assets, could have potential for use in regulated industries, such as finance and healthcare.
