Cryptocurrency payments are steadily increasing, particularly as the DeFi market rebounds from the ‘crypto winter’
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Thanks to an opportunity to talk to Transact365 we've recently asked them whether they see, by any chance, a shifting popularity of various payment methods? Do stats confirm that cryptocurrencies slowly become real alternatives to traditional currency conversion when it comes to e.g. international payments? Let's hear from Scott Major, COO of the company.
Scott Major (Transact365): Akin to industry research, Transact365 is seeing continual diversification of payment-making preferences across global markets.
Scott Major: The proliferation of embedded finance technology within API-based BNPL platforms, such as Klarna and Affirm, has increased payment flexibility. Reduced cart abandonment rates are another significant advantage. Research suggests that when merchants use BNPL payment options abandonment is slashed by almost 40%. With cart abandonment rates averaging 70% - the equivalent of $18billion a year - there are significant savings to be made by utilising BNPL options.
Consumers holding crypto reached 4.2% of all shoppers in 2023
Scott Major: Other emerging technologies within the Web3 space, such as AI, the Metaverse and the continual growth of DLTs such as Blockchain, mean consumers have more choices and ease of payment than ever before. The process of shopping online has been simplified via increased options - a rare success story when tech companies target widespread sector innovation. For merchants, increased payment flexibility has facilitated growth; new markets and demographics are taking advantage of tailored solutions that fit individual geographical and economic situations.
Scott Major: Cryptocurrency payments are steadily increasing, particularly as the DeFi market rebounds from the ‘crypto winter’. Consumers holding crypto reached 4.2% of all shoppers in 2023. This figure is even higher in developed economies home to tech hubs; 22% of UK adults own cryptocurrency with 28% likely to trade or buy crypto within the next 12 months. Within this, there is a greater diversification of cryptocurrency payment types; Bitcoin remains dominant, but other altcoins are becoming established as viable options for investment and spending. The likes of Litecoin (9.6%) and TRON (5.2%) take their place behind Ethereum, at 10.9% of all shopping-based crypto use.
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Scott Major: Innovations to the payments space, which have made significant steps toward seamless crypto facilitation, are likely to further altcoins' use in e-commerce purchasing. In turn, this provides unique opportunities for merchant scale-up. Offering cryptocurrency as a payment option, as leading gateway providers such as Transact365 now do, allows merchants to access previously untapped regions; ones with less reliable traditional finance infrastructures, heavier payment fees, or higher risk options. Crypto’s ability to facilitate fast, inexpensive payments is a key attribute driving adoption and use. Adoption will likely increase in the coming years as consumer preferences diversify and Web3 technologies usher in a more decentralised landscape.
Attributed by Scott Major, CCO at Transact365
