The growing popularity of cryptocurrencies has led to an increased demand for crypto payments in various industries. Recent research conducted by Crypto.com and Worldpay reveals that there is a considerable gap between consumer interest in using cryptocurrencies for purchases and the number of merchants currently accepting crypto payments. In this article, we delve into the potential of crypto payments in e-commerce, examining the data from these studies and discussing the advantages of embracing digital currencies in the online shopping landscape, while highlighting how Boomfi can facilitate this adoption.
According to Crypto.com, 75% of their customers are interested in purchasing goods or services with cryptocurrency. However, only 4% of surveyed merchants accept crypto as a payment method, highlighting the significant gap in fulfilling consumer demand. With limited options for direct transfers from consumer to merchant crypto wallets, customers often have to convert crypto to fiat before making purchases, which can be a hassle and costly.
In an ideal world, cryptocurrency holders would like to make purchases that take advantage of real-time market prices while avoiding the inconvenience and expense of fiat conversions. To address this demand, customers have turned to products such as Crypto.com's Visa card and reward program, which auto-sell crypto holdings to fund fiat purchases. Approximately 65% of Crypto.com customers use their Visa card, demonstrating the growing consumer appetite for crypto payment solutions.
Worldpay's research shows that 60% of their merchants are interested in accepting cryptocurrency as payment for goods or services. By doing so, they could increase their total addressable market, reduce dispute costs, and lower transaction fees. Although merchant crypto acceptance is limited today, more than half of the merchants surveyed would like to accept crypto in 2022.
However, merchants face challenges such as steep learning curves and complex coordination among internal teams (e.g., treasury and operations), which can slow the pace of adoption. This is where Boomfi comes into play. As a payment solution provider, Boomfi can simplify the transition to crypto payment acceptance at scale by offering embedded services with existing integrations, catering to merchants of all sizes and various pricing models.
Enthusiasm for cryptocurrency payment acceptance varies across industries. Travel, hospitality, and automotive industries show less interest, likely due to the impact of COVID-19 on travel and hospitality, and the technology paradigm shift to electric vehicles in the automotive sector.
On the other hand, luxury goods and retail industries are eager to embrace crypto payments, with luxury goods benefiting from the authenticity and provenance features offered by NFTs, and retail keen to take advantage of higher average transaction values from customers who spend in crypto.
Interestingly, customers' top choice for crypto expenditures is travel, a sector that displays the least interest in accepting crypto. Airlines, train operators, and national transport systems have a massive opportunity to capitalize on market demand for crypto payments. By leveraging Boomfi's omni-chain solution and a suite of no-code to low-code integration options, these industries can seamlessly adopt crypto payments and cater to consumer preferences.
As the adoption of cryptocurrencies continues to grow, businesses must embrace innovative payment solutions to cater to consumer demand and stay competitive in the e-commerce landscape. By integrating crypto payments into their platforms, e-commerce businesses can bridge the gap between consumer demand and merchant acceptance, unlocking new opportunities, streamlining transactions, and offering a superior shopping experience that keeps customers coming back for more. Boomfi's comprehensive crypto payment solution can play a crucial role in this transition, empowering merchants to harness the benefits of digital currencies and thrive in the evolving e-commerce landscape.