Despite criticisms from different people, crypto has continued making its way into the business world. This was something that seemed impossible after the first currency was developed in 2009. But, well, many businesses are now actually relying on crypto to enhance their operations and financial transactions.
Just recently, Statista projected that the crypto payments market could grow by a CAGR of 17% by 2030. In another place, Global Market Inights Inc. valued the industry at $1.2 billion and anticipated it to grow by a CAGR of 15%. The difference between the two projections is not that big. But why do you think that this sector is expected to make such great leaps in the coming days? If you have such questions, relax because we have just the right answers.
But wait. You will agree that such information is very important for any serious investor. The crypto industry is quite volatile, and the way people flock into it can greatly affect the prices of currencies. For instance, when more people demand Bitcoin, the Bitcoin price can increase and vice versa. So, you want to always check out such trends to help you make more informed decisions
The growing appeal of crypto
Let’s say, for example, you have gone shopping and wanted to buy a refrigerator maybe. You find two sellers; one has free shipping while the other does not. Which one of the two will you likely do business with? The one who has the services that you just need – free shipping, right? It is not any different in the business world.
The world right now has about 560 million crypto users, according to a study by Exploding Topics. Of this statistic, regions like Asia are topping with more than half (327 million) of the users. Assuming you want to launch a business in this region, would you want to ignore such a statistic? Some customers will just transact with your platform because you allow crypto payments.
That is why you have not stopped seeing many businesses integrating crypto payments to stay relevant. Actually, according to Market Research Future, the blockchain in the media and entertainment industry almost hit the $400 million mark about two years ago. The study projected that this industry could grow to reach $11,766.5 million within the next few years. Such statistics are evidence enough that the crypto payment market will actually grow, as Statista anticipates.
Why are crypto-based payment systems appealing?
Better customer experience
Just as we hinted in our refrigerator example, you want to transact with businesses that offer better experiences. You could be part of the 73% of buyers who, according to Exploding Topics, will consider experience when making purchase decisions. And the good thing about offering positive experiences is that customers can spend up to 140% more than when they find negative encounters.
Let us take the gaming world, where instant gratification seems to be the order of the day, for example. Most players will want to access their transactions as soon as they withdraw them. But that is not possible with the traditional banking systems where you have to wait for days, if not weeks, to access funds. However, with crypto, things are quite different. Transactions are quite fast, allowing you to receive your funds almost instantly.
Financial inclusion and greater reach
If you have been in business for a long time, especially globally, you can agree that cross-border transactions can sometimes be expensive. In fact, a recent study highlighted that about 30% of respondents said cross-border efficiency was one of the pain points when paying. The study further highlighted that several banks pointed out the need for more modern cross-border payments.
And what better way to receive payments than to use crypto, which eliminates cross-border limitations? In fact, customers will not need to have bank accounts and fill out complicated forms to receive their funds. In a world that seeks to be more inclusive, such benefits are very essential.
Do you actually know that, according to a FinDev Gateway report, only 76% of the global adult population can access financial services? Crypto offers a great opportunity for businesses to reach people who cannot access such services. That is why we may continue to see more businesses adopt crypto payments, especially those that are interested in international markets.
Better security
Security is another highly sought-after feature in our modern world. Think about the more than 940,000 cyber attacks released per day. Would you want to be a victim? And that explains why businesses are always coming up with new ways of enhancing security to protect their customers.
Thankfully, crypto can also be of help. This technology does not need you to fill in personal details like traditional methods. Plus, it is more decentralized, reducing the exposure of centralized methods. The private crypto keys are also a great way to secure payments.
Parting words
You shouldn’t be surprised at all to see many more businesses adopting crypto-based payment methods to stay competitive. Of course, as a business seeking long-term impact, you cannot afford to ignore current trends.
For example, now that many people are welcoming crypto, you want to also have a share among such audiences. So, what will you do? You may perhaps offer services that cater to their needs to be more relevant. That is the reason why the crypto payment sector could continue growing, just as Statista anticipates.