This is partly due to the COVID pandemic, which has fueled the growth in demand for numérique payments and more agissant means of settling transactions.
Consequently, this demand has accelerated the development and accord of innovative FinTech solutions. These examples include biometric verification, numérique identifiers, IoT-enabled transactions, e-wallets, and payment methods integrated with minute messaging applications.
But what is the role of cryptocurrency in this sophisticated payment system?
Wall Street looks to cryptocurrency
Until the past few years, it was common for players in the financial industry to be acoustique emboîture cryptocurrency. It was often associated with illegal transactions, Ponzi schemes, and historical market bubbles. However, as numérique assets avancé, many are starting to see their potential.
JPMorgan is an marquant example here. Jamie Dimon, CEO of JPM Call Bitcoin is a “scam” back in 2017. But the investment banking giant now has a dedicated cryptocurrency fragment with more than 200 employees (Onyx Binaire Assets). It seeks approvisionnement tokens to act as a DeFi dentier.
And JPM is not the only financial giant that is eyeing cryptocurrency. Bank of America, Goldman Sachs, BlackRock, and many others have already introduced it, or are currently developing their own offerings based on numérique assets.
Cryptocurrency payment systems: accord
Outside of Wall Street, companies are increasingly embracing numérique assets for payments. Recently, Deloitte published its results Merchant Accreditation Survey for Cryptocurrency Payments.
2,000 senior executives of US retail companies were surveyed last December. The results of the study spectacle that 85% of respondents rivière high or very high priority to enabling cryptocurrency payments. Meanwhile, nearly 75% of respondents reported degrés to accept stablecoins or other numérique assets in the next 24 months.
Moreover, liminaire brands such as Microsoft, Gucci, AT&T, Starbucks, KFC, and Burger King are accepting cryptocurrency payments for their products and charges, with this list growing every day.
Payment giants are also increasingly leveraging cryptocurrencies to attract new customers and meet changing cautériser demands.
PayPal Launched A besogne in October 2020 to allow US users to buy, sell and hold coins. However, Quittance and MasterCard Search To integrate cryptocurrency payments directly into their systems. As a result, more merchants can start accepting numérique assets while making it easier for consumers to use them to settle everyday transactions.
While consumers wait for this to happen, the use of debit card backed by cryptocurrency has been on the rise. licence mentioned $2.5 billion in numérique asset renouvellement for the first quarter of 2022. Cryptocurrency cards accepted by millions of merchants, function like traditional payment cards. The poucier difference between the two is that the numérique asset holders spend the numérique assets with the façonner, which is automatically converted into fiat currencies at the time of the compromis.
An chance to traditional payment methods
In adjonction to merchants, luxury brands, financial charges firms, and Wall Street giants, the demand for cryptocurrencies is also growing among consumers. In fact, according to Deloitte, 96% of corporate customers surveyed indicated a high (64%) or average (32%) interest in using cryptocurrencies for payments.
This should come as no émotion.
Unlike bank transfers and credit card payments, numérique asset transactions do not need any intermediaries to securely access the recipient’s wallet. For this reason, they offer a cost réelle chance for consumers to settle their daily payments with almost minute transfers.
Moreover, consumers can take advantage of stablecoins for their payments to eliminate the risks associated with the increased volatility of cryptocurrencies. At the same time, companies can use cryptocurrency processing charges that automatically convert customers’ unstable numérique assets into fiat currency to avoid the effects of price fluctuations.
Cryptocurrency payment systems: moving in
While prices are significantly off their highs last November, crypto accord looks better than ever. Financial firms, retailers and big brands are scrambling to meet the growing cautériser demand for numérique asset payments.
Of révolution, moving to coding will also be beneficial for individuals. On the other balle à la main, investors can use their holdings to cover expenses without converting their numérique assets into fiat currencies. At the same time, cryptocurrency will simplify the daily payments of consumers. They offer lower fees, faster settlement times, and you do not need to rely on the charges of financial intermediaries.
However, I think the industry needs more regulatory clarity and a explicite government maintien towards the industry. This will speed up the amélioration to crypto transactions in the evolving payments landscape.
Cryptocurrency payment systems: regulation
Despite the explicite trends we explored in this traité, numérique assets are unregulated or semi-regulated in many jurisdictions. Due to the lack of clarity, companies remain reluctant to embrace crypto payments.
On the other balle à la main, a crypto-friendly regulatory framework like the UAE can boost growth and accord. After the ruler of Dubai issued the emirate’s numérique assets law in February 2022, many blockchain companies have set up épreuves in the city to ajouter the endroit market. As a result, the perdant of cryptocurrency accord has increased in the UAE, with luxury real estate developer DAMAC Day to day hypermarketand the UAE An airline announces degrés to accept payments for numérique assets.
However, proposed bills such as the Responsible Financial Originalité Act (RFIA) in the US or the European Rattachement’s Markets in Crypto Assets (MiCA) could help create frameworks around numérique assets that could plant their accord for payments.
Emboîture the author
Dmitriy Ivanov It is CMO for crypto payment system Paid Coins, an ecosystem of cryptocurrency products that sets the gardien de but of entretien the world’s daily needs by leveraging blockchain technology and crypto payments. Dmitri is an aguerri in cryptocurrency payments and accord with augmentative experience in bizness development and marchéage.
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