Why Some Business Accept Cryptocurrencies (And More Should Consider It)

Cryptocurrency has become a hot commodity when it comes to trading. The potential to make lots of money quickly is just too good to resist for some investors. The downside is that investing in cryptocurrency carries a lot of risk. However, when you incorporate cryptocurrency into a diversified portfolio and invest right, cryptocurrency trading is highly rewarding.

As cryptocurrency becomes more mainstream, ecommerce companies and other companies are beginning to smile kindlier on digital currencies and accept them as payment. Online casinos such as the 888casino site offer a variety of ways for their players to pay, however they don’t accept cryptocurrency as a method of payment. However, this is out of their control. If they want to be fully regulated in the UK, accepting cryptocurrency isn’t an option. Below is a look at some companies who accept cryptocurrency and at some of the benefits of accepting cryptocurrency as a form of payment.

Microsoft

Tech giants Microsoft wasted no time in accepting Bitcoin, doing so as early as 2014. There have been two occasions when the company stopped because of the high volatility of the cryptocurrency. Now Microsoft are welcoming Bitcoin again with open arms. Part of the reason they allowed cryptocurrency payments was to allow customers to do more with their devices, to do more in the cloud and generally to have more options.

PayPal

In October 2020, the PayPal site announced it would allow customers to buy, hold and sell cryptocurrency directly from their PayPal accounts. PayPal is one of the largest payment processors in the world and has been so for years. In the first quarter of 2021 alone, it’s reported to have processed around $222 billion in payments. The company decided to facilitate cryptocurrency payments as a way to capitalize on the growing interest in cryptocurrencies.

Starbucks

Whereas PayPal are making it possible for customers to buy, sell and hold cryptocurrency, Starbucks are providing the option of letting their customers pay for their coffee with cryptocurrency. This isn’t direct payment with cryptocurrencies, however. They announced that they have partnered up with the Bakkt site so that customers can convert their cryptocurrency into US dollars to pay for their coffee with it.

The decision to allow the conversion of cryptocurrency for payment makes sense because it enables Starbucks to offer a seamless digital experience and reduce friction. Customers who use the company’s loyalty scheme tend to visit the coffee bars more often and to spend more.

The clear acceptance of crypto

What is becoming clear is that it’s not just businesses who are beginning to embrace cryptocurrencies. Digital currencies are starting to win over the general public more and more.

The media company Thomson Reuters, referencing research in the US published in November 2021 by Pew Research, reports that 16% of the respondents had stated they had invested in cryptocurrencies, traded them or in some other way used them. The company also drew attention to research cited in Newsweek magazine, in which around 46 million Americans (roughly 14% of the population) were estimated to own cryptocurrencies.

Thomson Reuters also reported that the UK’s Financial Conduct Authority has also discovered heightened public interest and awareness in digital currencies. Consumer research published in 2021 found that 78% of adults had now heard of cryptocurrencies. Approximately 2.3 million now owned cryptocurrencies, an increase from the 1.9 million of 2020. Fewer people also saw them as a gamble, and more people see them as an alternative to more mainstream forms of investment.

The benefits of offering crypto as an accepted method of payment

Regardless of how consumers themselves might feel about crypto, offering the option of paying with crypto has obvious benefits for businesses.

Receive payment instantly from anywhere

When a customer uses a crypto asset, their location doesn’t affect the speed or the cost of the payment in any way. A lot of blockchains tend to settle payments immediately, so the payments are processed in seconds. Even payments that might take longer to process can be safely detected and approved quickly.

Avoid currency conversion costs

International transfers can be frustrating as the payment may have to go through more than one bank, creating possible delays and extra costs. Payment in cryptocurrency, however, doesn’t involve cross-border settlements. Nor does it generate the head ache of dealing with fiat currency exchange rates and procedures.

Attract wealthier customers

Offering cryptocurrency options is a chance to attract customers who will later spend a lot more money with the business. Blockchain customers have been found to spend more than people who use a credit card and are likely to provide further customer if they have a good experience with the business.

Cryptocurrencies as a payment option create flexibility and convenience for customers and can make life easier for the businesses who provide the option. If you’re a business owner and have not yet made it possible for customers to pay with cryptocurrencies, you may wish to consider this so you can reap the benefits later.

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