CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Interest in crypto payments rising among merchants and customers

By Debabrata Das

01:40, 17 February 2022

woman barista holding tablet and show bitcoin accepted here on tablet screen at cafe
Woman barista holding tablet and show bitcoin accepted here on tablet screen at cafe – Photo: Shutterstock

With a sharp rise in the market capitalisation of cryptocurrencies, a new survey by cryptocurrency exchange Crypto.com and payment processing firm Worldpay has found a similar increase in merchants and customers wanting to transact in cryptocurrencies.

The survey, which was conducted on 110,000 of Crypto.com’s customers covering a range of geographies, ages and income levels, found that 75% of consumers and 60% of merchants want to transact in cryptocurrency.

“With only 4% of surveyed merchants accepting crypto as a method of payment today, there is a significant gap to fulfilling this customer demand. With limited-to-no opportunity to conduct direct transfers from consumer to merchant crypto wallets today, customers are typically forced to convert crypto to fiat before making purchases,” the report stated.

“In an ideal world, cryptocurrency holders would like to be able to make purchases that take advantage of real-time market prices while avoiding the hassle and cost of fiat conversions. Where direct payments in cryptocurrency are not possible, customers have turned to payment products that contribute to their crypto holdings,” the report added.

Interestingly, despite altcoins being popular in 2021, customers and merchants want to transact using the more traditional Bitcoin and Ether. Stablecoins like the USDC is also a popular choice among customers and merchants as a mode of transaction.

“Exchange-native tokens with attractive staking rewards and access to premium cards are also popular with customers,” the report stated.

A multi-chain future

Given the popularity of altcoins, the survey notes that merchants cannot ignore these for too long.

“As the trend toward a multichain future develops, technology service providers, payment firms and merchants must be flexible to provide fit-for-purpose checkout experiences to customers that include a diverse range of cryptocurrencies at an accelerating rate,” the report said.

SOL/USD

170.30 Price
-0.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

66,707.80 Price
-0.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,502.08 Price
-0.300% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.60 Price
+3.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Further, the survey found that while customers want parity in both online and offline merchants for transacting in cryptocurrency, merchants are prioritising the online channel for now. This could be because of the infrastructure challenges.

What is your sentiment on BTC/USD?

66707.80
Bullish
or
Bearish
Vote to see Traders sentiment!

“Myriad” of challenges exist

“Changes to the in-store payment systems and infrastructure that may be required to ensure compatibility with crypto payments could present a myriad of challenges that don’t exist in digital realms,” the report said.

“Online crypto payment channels will lead the way for mainstream adoption in Europe and North America with new in-store crypto payment channels likely de-prioritised for the short-to-medium term,” the report added.

Interestingly, the appetite for crypto transactions is high not just from merchants of luxury goods but also from retail and grocery merchants. Financial services and healthcare services merchants are also keen on accepting crypto payments.

For the customers, meanwhile, the biggest interest is among those who are buying travel-related products and services. Ironically, among merchants, this is the sector that displays the least interest in accepting crypto.

“Airlines, train operators and national transport systems have a massive opportunity to capitalise on market demand for crypto payments. Once retailers are live with crypto acceptance solutions, we expect a significant uptick in transaction size and footfall,” the report said.

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading