What the Future Holds for the Crypto Ecosystem

The crypto ecosystem has become an inseparable part of the modern world. While the market goes steady, the crypto ecosystem continues to evolve as merchants innovate and adopt cryptocurrency payments in their quest to attract new customers.

Data platform PYMNTS worked with Bitpay to survey merchants in an attempt to understand the trends on what the participants expect from digital currencies and their impact on payments and businesses.

The report is quite interesting, to say the least. The researchers found that among businesses with an annual income of $1 billion, 85% are adopting crypto payments to find and attract new customers. Conversely, 82% of all the merchants who participated in the survey cited crypto’s elimination of middlemen as their reason for accepting crypto as a payment method.

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Apart from these, the result also showed that the vast majority of surveyed merchants are also drawn to accepting crypto because of lower transaction fees.

According to the “Paying Wirth Cryptocurrency” report, the fees for processing crypto transactions are around 1%. This is much lower compared to the usual fees, from 1.5% to 3.5% charged by other payment options like credit cards.

While most of the above-mentioned report shows positive perspectives on crypto, problems remain. Some surveyed merchants stated that technical barriers and challenges still get in their way of adopting crypto payments.

Of the surveyed merchants that don’t accept crypto yet, 68% said that this is because of the challenges that they face in the implementation of the technology at the checkout.

Crypto ecosystem and challenges

In spite of the crypto winter, many companies have already integrated crypto payment options.

Starbucks, AMC Entertainment, as well as Whole Foods, entered the crypto ecosystem in 2021. Still, what’s apparent is that headlines play favorites to household names. But for other businesses that want to hop on the trend, it is a question of how to start.

The last several months have seen the crypto market witness an unprecedented amount of financial volatility.

In spite of the previously stated volatility, a recent report shows that small to medium-sized enterprises (SMEs) across nine separate countries, Canada, Brazil, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates, and the United States, are extremely open to the idea of accepting cryptocurrency payments-especially Bitcoin.

Within the study, 24% of the respondents said they plan on accepting Bitcoin alongside other digital assets in the near term. Moreover, 59% of participants revealed that they plan to switch to using only cryptocurrencies in several years.

Crypto payments offer a number of benefits. For instance, the issue of chargebacks or compliance with payment card industry standards are completely mitigated when it comes to digital assets.

Furthermore, acceptance of Bitcoin and other digital currencies can help attract additional business from crypto enthusiasts and potentially multiply one’s profits.

As a payment network, Bitcoin (when used jointly with the Lightning Network) is unequivocally superior to the seven-plus-decade-old system that underlines credit cards.