The rise of cryptocurrencies has been one of the most talked-about topics in finance for over a decade, dating back to Satoshi Nakamoto’s 2008 article proposing the first direct peer-to-peer payment system.
Despite the attention and support that the bitcoin exchange and other cryptocurrencies have received, one of the most common accusations levelled at them is that they are not legitimate currencies because they are little more than a store of wealth and a trading instrument. To become a genuine alternative to fiat currencies, cryptocurrencies must progress from simply having value to being a widely accepted payment method.
The demand for cryptocurrency payments is growing:
Despite some initial reservations (in our 2017 Lost in Transaction survey, 25% of merchants indicated they did not trust cryptocurrencies), the appetite for adopting cryptocurrencies as a payment method has reached a tipping point. Businesses that recognise the urgent need to stay relevant as the payments ecosystem fragments by taking more payment options at the checkout are becoming more open to accepting cryptocurrency, in line with rising consumer demand for crypto payments.
We surveyed small-to-medium-sized businesses in the US, UK, Canada, Germany, and Austria about accepting cryptocurrency exchange through their online checkout in Lost in Transaction 2018: The Future of Payments for SMBs.
How to accept cryptocurrency effectively online?
This feature is available to merchants through the Skrill Quick Checkout integration. Skrill Quick Checkout allows an online business to simultaneously integrate hundreds of payment methods into its checkout that may be selected and deselected via its merchant account capabilities, including the ability to accept bitcoins.
As a result of this integration and the variety of cryptocurrency stocks available, online retailers may swiftly integrate currencies like Bitcoin into their accepted payment ways while maintaining their acceptance of traditional and alternative payment methods.
Prepaid cards provide a direct link between a cryptocurrency account and the high street:
Using cryptocurrencies to make payments is not dependent on the merchant’s ability to accept them from the consumer’s perspective. Instead, they want to be able to put the money they have in their crypto wallet to good use by making it spendable in the real world.
Giving crypto wallet users the option of tying their account to a prepaid card is one way. This works similarly to a prepaid card linked to a digital wallet. It allows cryptocurrency account holders to make purchases using the funds in their account without transferring their funds into another currency, which can be time-consuming.
Industry-leading payments services providers such as Paysafe move cryptocurrencies from just a trading commodity or store of wealth to put them into the real world with innovative alternative payments systems like Skrill Quick Checkout and the Coinbase Debit Card. While we still are a long way from seeing cryptocurrencies advertised as accepted in-store or online, features that allow Bitcoin purchases are becoming more prevalent.
These payment innovations, and business growing demand using cryptocurrencies, will undoubtedly continue to evolve and gain appeal as they become more widely known. The use of cryptocurrencies for payments has become more mainstream.