Blockchain, AI, IoT, are permeating their way into our lives, and the older, traditional models and technologies are utilizing them to stay ahead of the innovation curve presented by FinTechs. The age of technology has certainly helped speed along the way we use, and understand, money. And now it is confirming the emergence of cryptocurrencies. Cryptocurrencies have been around for 10 years, yet they have only recently become ‘mainstream’. As of 2021, there are something in the region of 2300 different digital currencies and their use is increasingly extending to the payment world.
According to Coinmap.org data as of May 2021, there are 22,271 crypto accepting points globally, including retailers, cafes and crypto ATMs.
In fact, as more people invest and acquire cryptocurrencies, companies and retailers are eyeing the adoption of tools to accept them as payments. Doing so can benefit businesses by expanding sales opportunities into international markets, bringing speed and cost benefits, through avoiding conventional currency conversions, and increasing payment transparency, efficiency and ease of use.
Mastercard announced its plan to implement the support of certain cryptocurrencies in its network, building upon an internal survey which revealed that around 40% of consumers from 18 countries intend to use crypto as a payment method in the foreseeable future. In fact, 77% of the young people interviewed in the survey expressed an interest in learning more about digital assets, and 75% of them said they would use cryptocurrencies if they understood them better, highlighting the opportunity to attract the most progressive clients.
In cross-border ecommerce, there has been increased support for crypto, most notably from PayPal, which made it possible for U.S. customers to pay merchants around the world in a variety of crypto currencies, converted into the local currency during the transaction. Then there is Jeff Bezos’ announcement of the option to pay with Bitcoin on Purse.io.
But, acceptance of crypto payments is not confined to consumer-facing businesses only. Some B2B cross-border payments companies have also begun to make moves in the space. And, according to Juniper Research, the scope of transborder cryptocurrency payments are forecasted to increase more than 25 times in the next couple of years, reaching $4.4 trillion in 2024.
Although digital innovators and challengers have been embracing cryptocurrency, some established payments companies are remaining skeptical about the technology. For example, Adyen CEO Pieter van der Does, reported that adding crypto payment methods is not on the company’s agenda, arguing that the volatility of cryptocurrencies such as bitcoin made it more of an investment asset than a payment method.
So, whether cryptocurrencies will take over traditional payment methods or not, remains to be seen. Nevertheless, with interest and support growing from consumers and payment companies alike, it’s clear we’ll be seeing a lot more use of cryptocurrencies as a payment method in the future.
It’s not just payment solutions in the FinTech industry that are using Blockchain and digital assets markets. Other exciting technologies and solutions are gaining traction and awareness.
An example from the trading industry is Exberry, which delivers a deep-tech trading infrastructure solution that offers an Exchange-in-a-Box for marketplaces. Exberry’s cloud-native matching engine offers an asset agnostic, flexible and cost-effective solution. Replacing outdated legacy technology and reshaping the world of marketplaces.
Easily integrated with blockchains and other ecosystems, Exberry enables disruptors and established players to launch new ideas and projects in no time.
Importantly, the cryptocurrency sector has been attracting significant interest and investment from retail and institutional investors alike. For instance, last week was marked with the largest Series B round in Latin America’s history and SoftBank’s largest investment in a crypto company from Latin America, with Mercado Bitcoin getting in $200 million in a fundraise. The investment round secures 2TM Group, Mercado’s parent company, a $2.1 billion valuation, putting it among top 10 unicorns in the region.
Another strong indication is DeFi-native crypto tracer Nansen, as it too reeled in $12M in a series A funding round.
These examples indicate that cryptocurrency companies are among the leading subsectors and as more investors show interest in promising crypto-related startups, the launching of new and innovative solutions in the area will continue to grow, securing the over $1087.7m market size for crypto by 2026.
Interested to learn more on the topic, explore different crypto-based solutions and network in person with other FinTechers?
Join FinTech-Aviv, the Israeli FinTech Association in the upcoming celebration of Binance 4th Bday, themed The Payment Revolution in the Age of Crypto
July 14th, 2021 @6PM IDT.
Location is: WeWork (6th Floor), Shoken St. 23, Tel-Aviv
Register to the event here: https://www.fintech-aviv.com/july14
Author: Tal Sharon
#Bitcoin #Cryptocurrencies #Payments #Innovation #FintechAviv