Choise.ai

Earlier this year, all the news about digital assets was about the ongoing crypto winter, the bankruptcy of lenders and other projects, and major black swan events like <a href="https://cryptonews.com/tags/axie-infinity/" rel="noopener noreferrer nofollow">Axie Infinity</a>&#39;s Ronin bridge<a href="https://www.thedefiant.io/axie-infinity-hack-600m" rel="noopener noreferrer nofollow"> </a><a href="https://cryptonews.com/news/axie-infinity-developer-denies-wrongdoing-following-ronin-hack-related-crypto-transfer-discovery.htm" rel="noopener noreferrer nofollow">hack</a> or the<a href="https://www.coindesk.com/business/2022/05/09/ust-stablecoin-falls-below-dollar-peg-for-second-time-in-48-hours/" rel="noopener noreferrer nofollow"> </a><a href="https://cryptonews.com/tags/terra/" rel="noopener noreferrer nofollow">collapse</a> of Terra&#39;s UST algorithmic stablecoin.Surprisingly, a significant change could be observed in recent months. Despite the fact that cryptocurrency prices remain near the current market bottom, there has been quite some positive media coverage about the industry lately.The reason for the latter is rather straightforward. In the last few months, a surging number of prominent businesses and government entities have started adopting digital assets for <a href="https://cryptonews.com/tags/payments/" rel="noopener noreferrer nofollow">payments</a>.<h2 id="header-0">Accelerating business and state crypto adoption</h2>In August, while Gucci<a href="https://www.cryptotimes.io/gucci-stores-now-accept-apecoin-payments/" rel="noopener noreferrer nofollow"> </a><a href="https://cryptonews.com/news/robinhood-fined-again-zb-suspends-withdrawals-resetting-viresfinance-apecoin-enters-gucci-more-news.htm" rel="noopener noreferrer nofollow">expanded</a> its list of supported digital assets with ApeCoin and the luxury resort chain Soneva<a href="https://news.bitcoin.com/sonevas-luxury-resorts-now-accept-crypto-payments/" rel="noopener noreferrer nofollow"> </a><a href="https://medium.com/&#64;trendingcryptonews/sonevas-luxury-hotels-now-accept-payments-in-bitcoin-and-ethereum-trending-crypto-news-d9c720aecdee?source&#61;user_profile---------11----------------------------" rel="noopener noreferrer nofollow">started</a> accepting major coins at its premises in the Maldives and Thailand, Oxford City has<a href="https://www.bbc.com/news/uk-england-oxfordshire-62399371" rel="noopener noreferrer nofollow"> become</a> the first non-league football club to integrate crypto for matchday payments.Moreover, businesses have expanded crypto payment coverage in Australia and Argentina. Сitizens of the latter can now <a href="https://www.mastercard.com/news/latin-america/en/newsroom/press-releases/pr-en/2022/august/binance-and-mastercard-launch-prepaid-card-in-argentina-to-bridge-cryptocurrencies-and-everyday-purchases/" rel="noopener noreferrer nofollow">utilize</a> a prepaid card brought about through a partnership between and <a href="https://cryptonews.com/tags/mastercard/" rel="noopener noreferrer nofollow">MasterCard</a> to settle transactions at merchants via cryptocurrencies. Meanwhile, Aussies can<a href="https://cointelegraph.com/news/aussies-buy-fuel-and-chips-with-crypto-across-175-fuel-outlets" rel="noopener noreferrer nofollow"> now </a><a href="https://cryptonews.com/news/cryptocom-users-can-shop-in-175-otr-stores-btg-pactual-launched-crypto-trading-platform-cdpq-wrote-off-stake-in-celsius-more-news.htm" rel="noopener noreferrer nofollow">purchase</a> fuel and other merchandise with their digital assets at On The Run&#39;s 175 premises.At the same time, states are also increasingly realizing crypto payments&#39; potential use cases and benefits. Of course, central bank digital currencies (<a href="https://cryptonews.com/tags/cbdc/" rel="noopener noreferrer nofollow">CBDCs</a>) continue playing a major role in governments&#39; cryptocurrency <a href="https://cryptonews.com/tags/adoption/" rel="noopener noreferrer nofollow">adoption</a>, especially if we consider how close China is to launching its <a href="https://cryptonews.com/tags/digital-yuan/" rel="noopener noreferrer nofollow">digital yuan</a> (e-CNY). While visitors and residents can leverage e-CNY to <a href="https://cryptonews.com/news/major-chinese-citys-metro-begins-accepting-digital-yuan-payments.htm" rel="noopener noreferrer nofollow">buy subway tickets</a> in Ningbo and Beijing, bus fares can be covered with the state-issued digital asset in Guangzhou.<h2 id="header-1">Clever marketing or real signs of crypto adoption?</h2>Large brands like Gucci, Balenciaga, and<a href="https://www.wsj.com/articles/luxury-brands-start-to-take-cryptocurrency-payments-11654860403" rel="noopener noreferrer nofollow"> </a><a href="https://cryptonews.com/news/tag-heuer-to-allow-users-to-display-nfts-on-their-smartwatches.htm" rel="noopener noreferrer nofollow">Tag Heuer</a> joining the ranks of companies like <a href="https://cryptonews.com/tags/microsoft/" rel="noopener noreferrer nofollow">Microsoft</a>, PlayStation, AT&amp;T, and Subway to accept crypto is definitely good news for the industry.However, before we imagine <a href="https://cryptonews.com/coins/bitcoin/" rel="noopener noreferrer nofollow">bitcoin (BTC)</a> and other major cryptocurrencies &#34;going to the moon&#34;, we should discuss whether this is a signal of real-world, no-fooling around adoption or just a marketing plot by brands.Fortunately, the prior statement seems to hold the truth.Whether they like it or not, big firms are adopting cryptocurrency for payments to fulfill consumers&#39; surging demand. In Gucci&#39;s case, the luxury brand likely decided to integrate ApeCoin due to its customers&#39; strong interest in the non-fungible tokens (<a href="https://cryptonews.com/tags/non-fungible-tokens/" rel="noopener noreferrer nofollow">NFTs</a>) of the popular Bored Ape Yacht Club (BAYC) project, where top celebrities like<a href="https://www.ledgerinsights.com/the-ultimate-pr-eminem-snoop-dogg-perform-as-bored-ape-nfts-at-mtv-awards/" rel="noopener noreferrer nofollow"> Eminem and Snoop Dogg</a> are actively involved.Furthermore, with an<a href="https://triple-a.io/crypto-ownership-data/" rel="noopener noreferrer nofollow"> estimated</a> 320 million crypto users worldwide, many consumers have realized the benefits of crypto payments. Compared to conventional forms of payment, digital assets are cheaper and faster to transfer due to the lack of intermediaries in the transactions. At the same time, while users have direct ownership over their funds (provided they weren’t goofing around with their private keys) with non-custodial wallets, they don&#39;t have to use a bank account, a credit card, or other services of financial institutions to settle their payments.For businesses, the advantages of crypto payments are even more obvious. Compared to traditional providers that typically charge between 1.5% and 3.5% for processing credit card transactions, a recent report<a href="https://www.pymnts.com/wp-content/uploads/2022/06/PYMNTS-Paying-With-Cryptocurrency-June-2022.pdf" rel="noopener noreferrer nofollow"> revealed</a> that it only costs enterprises approximately 1% to accept digital assets with a capable processor.The savings in fees and the speed of transactions provide an excellent opportunity for merchants to reduce their bottom line. Furthermore, while they can target crypto-native prospects more efficiently, they face significantly fewer risks of unfriendly behavior, viz. fraudulent chargebacks, with digital assets-powered transactions.<h2 id="header-2">Who will take the lead in crypto adoption?</h2>In the coming months, I expect more luxury brands, especially those actively involved in the NFT and <a href="https://cryptonews.com/tags/metaverse/" rel="noopener noreferrer nofollow">metaverse</a> sectors, to follow in Gucci&#39;s footsteps and adopt crypto payments. Also, as demand among merchants grows, it will likely give one more reason for payment giants like MasterCard, <a href="https://cryptonews.com/tags/visa/" rel="noopener noreferrer nofollow">Visa</a>, and <a href="https://cryptonews.com/tags/paypal/" rel="noopener noreferrer nofollow">PayPal</a> to introduce new or expand their existing digital asset offerings to fulfill enterprise demand.At the same time, as the upcoming metaverses of tech firms like <a href="https://cryptonews.com/tags/meta/" rel="noopener noreferrer nofollow">Meta</a> and <a href="https://cryptonews.com/tags/microsoft/" rel="noopener noreferrer nofollow">Microsoft</a> are getting one step closer to their launch, we might witness an acceleration of crypto adoption in this field as well, where said assets might be utilized as a means of payment in virtual worlds. Now, how and whether – if at all – future-proven and <a href="https://cryptonews.com/tags/regulation/" rel="noopener noreferrer nofollow">regulation</a>-resistant will those new efforts be, remains to be seen. Meta still hasn&#39;t fully recovered from the <a href="https://cryptonews.com/tags/libra/" rel="noopener noreferrer nofollow">Libra</a> blowback. How decentralized and peer-to-peer (<a href="https://cryptonews.com/tags/p2p/" rel="noopener noreferrer nofollow">P2P</a>) those infrastructures are is yet another point of uncertainty.Next year, we may also see some new government initiatives that aim to leverage the benefits of crypto payments in a similar way, spanning across the continents, from Iran through African states to Argentina&#39;s Mendoza province. However, I believe all those efforts will be slowed down by the focus that might be diverted to CBDC development.For that reason, I expect businesses to take the lead in crypto payments adoption for the next few months – or at least until <a href="https://cryptonews.com/tags/china/" rel="noopener noreferrer nofollow">China </a>completes the nationwide launch of the digital yuan, opening up the way to millions of new crypto users.Read full article <a href="" rel="noopener noreferrer nofollow">https://cryptonews.com/exclusives/merchant-crypto-payments-clever-marketing-or-signs-of-real-adoption.htm</a>

Andrey Diyakonov the Chief Commercial Officer at Choise.com for Cryptonews: Merchant Crypto Payments - Clever Marketing or Signs of Real Adoption?

Table of Contents

ChoiseComCHO

Other articles published on Oct 13, 2022

Capital.com: Vladimir Gorbunov, Founder and CEO at Choise.com talks about Solana hack - How to pr...

Austin Kimm Director of Strategy & Investments at Choise.com for Payments Journal: MetaFi – The S...

Business2community: Analyzing How Listing on Exchanges Affects the Price of New Tokens

Chainalysis: October is the biggest month in 2022 for DeFi hacks – see why

Benzinga: Hedge Crypto Against Volatility With Crypto Price Insurance Service from Choise.com

Newsbtc: Fundamentals Backing MATIC, FTT, CHO, and SAND as Top Altcoins to Watch In Fall 2022

Join our free newsletter for daily crypto updates!