Netflix, Amazon Prime, Spotify, Disney+, and the list goes on. Did you know that Millennials have an average of 17 paid media and entertainment subscriptions each? Gen Z, Gen X, and even Baby Boomers are not so far behind, with averages of 14, 13, and 8 subscriptions each respectively. This does not even account for free services which users may be using that are paid for by watching or clicking through ads.
The subscription economy is growing, and growing fast. In fact, it has grown over 435% in the last nine years, and only picking up more steam through the impacts of covid-19, and the change in behavior of consumers now actively willing to pay for certain things that have only become more popular in recent years (e.g. news, grocery delivery, food delivery). This upward trend is expected to continue as Gen Z continuously shows time and again that they value access over ownership.
Additionally, it is undeniable that cryptocurrency adoption is increasing, and with it, the usage of the blockchain. Mainstream adoption of crypto has increased dramatically in recent months, with digital payments companies like PayPal and Square allowing crypto purchases and payments through their platforms, and with companies like Tesla and TIME magazine adding bitcoin to their balance sheets. Therefore, it is imperative that not only do businesses need to start thinking about subscription models, but also the manner in which those subscriptions are paid for (fiat money or cryptocurrency), and how those subscriptions are delivered to the end user (blockchain).
Advantages Of A Cryptocurrency Subscription Model
In addition to having to “adapt to the times”, there are several benefits that businesses can enjoy by adopting a cryptocurrency subscription model. Perhaps one of the most beneficial points is to be able to transact in a global currency – where one business does not necessarily need to worry about exchange rates (EUR to USD, USD to CNY, etc…). For those who are concerned with the volatility of many of the most popular cryptos out there, remember that there are stablecoins available, including Tether (USDT), and USD Coin (USDC). Companies willing to transact with the US Dollar as the underlying representative currency will find stability through the use of stablecoins in a cryptocurrency subscription model.
Other benefits include – ease of doing business (especially for those industries which payment processors are less willing to take on due to the nature of that business), and instant settlement (from 1-2 days with a credit card, to minutes on the blockchain). Depending on the blockchain being used to conduct the transaction, processing fees may also be lower. USDT transactions on the Tron Blockchain currently have a maximum fee of 10TRX (as of April 13th 2021, 1 TRX = 0.143 USD – In comparison, most credit card processing fees cost 2.9% + 0.30USD of the transaction cost).
Read More: finance.yahoo.com