Cryptocurrencies were born to facilitate digital payments, and e-commerce seems to be increasingly believing in them and aiming for crypto adoption. Blockchain technology is revolutionizing the way we all pay and transfer money.
According to BitPay, more than 100,000 merchants worldwide accept cryptocurrencies.
In this article we will go over the various aspects of crypto payment, delving into the benefits of using crypto as a payment method and taking a look at the most popular companies that have already adopted this.
The year 2022 was a revolutionary year for the crypto payments industry, making it clear that crypto payments is not something that will be about the future, but is already present.
The benefits of using crypto as a payment method
The decentralized ledger has on it all blockchain-based payments (therefore obtained through cryptocurrencies in their most common form).
So this means that every single monetary transaction that takes place between two different accounts (public addresses or wallets) is recorded on the ledger that transmits each transaction to the blockchain network that will only have to confirm the validity of the transaction.
Transactions need to perform only two easy steps to be considered as such by the blockchain:
- Authorization: the user (the consumer) is responsible for authorizing the payment. This gives the consumer the responsibility to: set the correct amount, provide the correct address, authorize the payment and transmit it to the network;
- Confirmation: the consumer must pay a certain amount of fee and wait for a transaction validity period.
The advantage that cryptocurrency offers is really better than the traditional payments we are used to: funds can be transferred anywhere in the world in minutes and in total security.
As far as transaction fees are concerned, we are talking about significantly lower fees than with the usual payment methods (normally even on transactions of thousands of dollars, the fee does not exceed $5).
Transactions via crypto, and therefore blockchain, cannot be cancelled, this eliminates the risk of chargebacks and puts those who adopt the method in total security.
Given that to date there are many countries that allow purchases via cryptocurrencies, interest in them is increasing steadily, and as a result there are a growing number of websites and services that offer people the ability to pay in crypto.
In Europe, Switzerland is the top country among those allowing people to use BTC for business and tax purposes. While the United States in America is the country that allows the most cryptocurrency payments. Many other countries have begun allowing the possibility of accepting crypto payments, for example, Brazil, Mexico, Argentina, Japan, El Salvador, and many others.
Which are the most popular companies accepting crypto payments?
Although they have not been fully regulated in many nations, crypto payments are an evolving phenomenon in many countries. That’s why many companies and multinational corporations have been innovating to such an extent that they are pushing for cryptocurrency payments.
Here are the most popular brands and services that accept crypto as a payment method:
As early as October 2022, Mastercard has made great strides in the blockchain world. First by launching its first NFT credit card, aimed at making cryptocurrency payments easier.
Then with the launch of Crypto Secure, the technology solution that aims to give greater security to digital economic transactions by combining CipherTrace technology with proprietary information to support issuers by empowering them to keep up with the changing regulatory landscape of digital assets.
The online shopping giant is working hard to include crypto as a payment method, directly on its e-commerce, it has even hired several blockchain experts for this big step.
In the meantime, one can convert cryptocurrencies into Amazon vouchers or Amazon coin, a currency that is also virtual but does not use blockchains. Let’s hope for faster future solutions for crypto purchases.
Lush is betting on virtual strategies. The British cosmetics company has begun accepting payments with Bitcoin in its stores across the Channel. This is a pioneering move in the world of retail, especially beauty retail, where few businesses are open to this innovative payment system. With this move, the ethical brand of fresh, handmade cosmetics is approaching the audience of cryptocurrency enthusiasts, which promotes digital currencies that use cryptography to secure transactions.
More than a year ago, Starbucks President and CEO Kevin Johnson announced that the coffee giant has been deepening its digital relationship through its payment partnership with PayPal and Bakkt.
The partnership allows customers to top up their Starbucks card with a range of cryptocurrencies including Bitcoin, Ethereum and others, converting digital currency into physical currency.
He also talked about using blockchain technology to improve digital services, enable customers to exchange value between brands, engage in more personalized experiences, and exchange more loyalty points for Starbucks stars.
More than 2,000 vending machines in Australia and New Zealand will allow customers to purchase a Coca-Cola with Bitcoin. Coca-Cola Amatil, the Asia-Pacific bottling giant, has partnered with digital asset platform Centrapay to integrate Bitcoin as a payment option from its vending machines in Australia and New Zealand.
This means that more than 2,000 smart vending machines now accept cryptocurrencies.