It seems as if we’re coming even closer to what many experts have termed a “cashless” society.
While credit cards and e-wallets are two common examples, cryptocurrencies have made massive headway in 2023 and their future looks bright.
This observation isn’t mere speculation. In fact, blockchain payment gateway CoinGate processed nearly 1.3 crypto payments in 2022 alone. This can be translated to roughly one transfer every 24 seconds. Not too bad for a means of payment that the public was largely unaware of until recent times.
What are some of the factors that seem to be driving this growth? What tokens are the most popular at the moment? Can we expect this very same level of momentum to continue? Are there any possible downsides to cryptocurrency payments?
Let’s jump right in and see what the team at Crypto Lists has discovered.
The Undeniable Role of Security
2022 achieved the rather dubious distinction of being the year associated with the highest numbers of credit card theft in history. Clearly, modern thieves have come a long way since pickpocketing. Cryptocurrencies largely do away with these concerns thanks to their anonymous nature.
This arises from the fact that crypto transfers don’t require any type of third-party verification and that payment details are not stored within a central database (a juicy target for fraudsters). Not only is this a massive benefit for individual consumers, but small businesses have likewise begun to appreciate such unique alternatives.
Cross-Border Payments
This is a lesser-known observation and yet, we feel that it’s another driving force behind the rise of cryptocurrencies. Crypto transfers to international beneficiaries aren’t subject to the remittance fees that are often charged by banks and other financial institutions.
Let’s also remember that users won’t have to worry nearly as much about fluctuating exchange rates and thank to handy crypto wallets, money can be sent and received without needing to possess any technical experience.
Transparency as a Fundamental Factor
As songwriter Billy Joel once said, it’s a matter of trust. A growing number of consumers have become wary about the control that big brother exerts over their daily lives. Now, we’re not talking about conspiracy theorists or individuals who choose to don aluminum hats.
A 2022 study conducted by Statista found that a full 36 percent of those surveyed simply don’t trust banks and governments in general. Considering the fact that the global financial crisis of 2007-2008 isn’t exactly ancient history, it’s no surprise that a growing number of consumers are hoping to keep big brother at bay through the use of cryptocurrency payment solutions.
A New Opportunity for Existing Payment Providers
It’s also wise to take a look at the pragmatic side of things. As a rule of thumb, traditional industries are hesitant to accept and implement emerging technologies. Green energy in relation to the oil and gas sector is a perfect example. However, financial institutions that choose to adopt crypto POS (point-of-sale) systems actually stand to benefit.
First and foremost, these methods are relatively easy to integrate into existing payment gateways. Cryptocurrency transfers also ensure faster settlement times; helping to increase in-house efficiency. Finally (and perhaps most importantly), crypto payments promise to attract a younger generation of consumers; a factor that will positively impact the “bottom line” of any financial organization.
The Next Iteration of Online Transfers
The online community has already been massively influenced by the rising tide of cryptocurrncy payments. One prime example can be seen in the sheer number of crypto-friendly casinos that have recently entered into the marketplace. If you’ve followed the reviews that we’ve compiled at Crypto Lists, some of these names should already be familiar:
Of course, online casinos represent the proverbial tip of the iceberg in terms of a blockchain-based future. Some other digital sectors that should benefit from crypto payments include e-commerce, restaurants (such as when making online reservations) and the hospitality industry.
Are There Any Possible Downsides to Mention?
As always, it pays to look at both sides of the coin in terms of cryptocurrencies as methods of payment. One issue involves the well-known fact that this sector can experience a significant amount of volatility on occasion. Not only will this affect the value of individual tokens, but conservative consumers are less likely to jump on the proverbial bandwagon.
Regulatory issues are yet another demon that has come to light over the past year; specifically in relation to how the United States Securities and Exchange Commission (SEC) intends to classify these assets. Should the SEC rule that cryptocurrencies will be regulated similar to securities, how might this impact their transparency?
Finally, not all blockchain exchanges have been created equally. Some have cited issues with providers such as CoinGate, as a one-time KYC verification will still be required. This can detract from its supposedly anonymous nature and therefore, CoinGate has experienced a slight backlash within certain sectors such as the online casino community.
What Does 2024 Have in Store?
To be clear, we believe that the benefits offered by cryptocurrency payments still outweigh the possible downsides mentioned above. Let’s also remember that this is a burgeoning industry at the moment. Mainstream society is becoming more aware of the advantages and this should lead to an even greater influx of eager customers. Major tokens such as Bitcoin, USDT and Litecoin have already become somewhat everyday terms far outside of niche investment circles. There’s no reason that believe that this trend is set to slow down.
Whether you’re a fan of crypto-powered casinos, you happen to be looking for a new way to perform everyday online transactions or you are concerned about safety in the digital age, cryptocurrencies could very well provide the solutions that you desire. Crypto Lists will continue to keep abreast of the latest industry news, so be sure to check back with us on a regular basis.
