The numbers are in, and they are conclusive – corporate is going crypto. PayPal was one of the first businesses to jump on the bandwagon, with Investopedia announcing that the secure payment service was going after ‘crypto curious consumers back in 2020.
Visa has also decided it’s time to take the leap. In a blog post titled “Advancing our approach to digital currency,” the platform outlines its position for the future. These are two of the biggest movers and shakers in the business world, so getting them on board is a massive win for the likes of Bitcoin and Ethereum. Of course, there has to be something in it for the companies, but what?
Lower Rates Equal Smaller Bounce Rate
Businesses might be different, but they share many similarities. Whether they are small or medium-sized, or global corporations, they have to contend with bounce rate, when shoppers abandon products and services. UWP reports that 67% of eCommerce customers leave their carts before finalizing their purchases.
CNBC puts it down to hidden fees, claiming that North Americans pay billions in surprise rates yearly. At least 85% of Americans say they have been hit with an unexpected expense, such as bank fees. Typically, the latter stand at anywhere between 1.5% and 3.5%, depending on the vendor. Thankfully for consumers and corporate organizations, cryptocurrencies either eliminate these rates or reduce them significantly.
If crypto traders do charge a fee, it’s around 0.5% and 1%. These figures are considerably lower and save shoppers significant amounts of money. The more companies can reduce costs, the more likely they are to encourage consumers to buy their products and services.
More Uptake Opens up Different Industries
Another reason for corporate to go crypto is to expand their reach and raise awareness of the brand. Tesla is the most current example of a business that’s using Bitcoin to hit the headlines, with the electric car manufacturer pushing up the price of Bitcoin to record highs. By accepting it as a payment, the brand legitimizes the currency and appeals to a broader audience.
PayPal is also leveraging bitcoin to incredible effect by allowing its users to buy and save money in BTC. Not only does make them the number one distributor in the world, but it also means they can branch into new sectors. The world of online casinos is the best example because the likes of Fruit Kings now accept PYPL transactions, which essentially means they welcome crypto deposits too.
Firstly, the remote wagering industry is booming due to its ability to diversify payments. Secondly, Elon Musk’s former company is now the second biggest bank in the US behind JPMorgan Chase.
The Customer Is King
According to the adage, the customer is always right. So, they get what they want, and currently, people are demanding cryptocurrencies. This isn’t only in the US, Canada and Europe, where you would expect usage to be prevalent, but throughout Africa, Asia and Latin America.
Statista reports that Nigeria is the biggest powerhouse, with 33% of Nigerians owning cryptocurrencies. However, the Philippines’ Central Bank has approved crypto exchanges, and Peru, Brazil, Colombia, Argentina, Mexico and Chile are in all double figures for cryptocurrency use. Ignoring the rise of crypto use among consumer bases, especially global ones, would be a death sentence for businesses. Therefore, they are taking more initiative to steal a march on their rivals and position themselves as thought-leaders in a relatively new industry