Cryptocurrencies have become the base of the financial industry and are on the verge of completely transforming our everyday life. Volatility, which is quite an issue for investors, is not a problem for merchants using Ether or other cryptocurrencies. That's why Apple's latest announcement to put wallets into iPhones has led to many speculations on whether Apple will allow merchants to pay with crypto.
One of the reasons behind such considerations might be that if many people start paying with cryptocurrencies in everyday transactions, it will help stabilize the volatility of these currencies and make them worthy investments. Recently, Bovada bitcoin betting site has also emerged as a big name to lead the trend in cryptocurrency payments.
A New Upgrade of Apple Wallet will enable Crypto Payments
If you compare Apple's attitude towards cryptocurrencies with that of other brands, you will realize that Apple is much more tolerant of new technologies than others are. A financial survey by Visa indicated that 24% of the merchants are ready to start accepting crypto payments by the end of the year 2022. 70% of business owners agree that using crypto payments is essential for the growth of their businesses.
In addition to credit and debit cards, Apple Wallet will allow merchants to accept crypto payments too via the "Tap to Pay Merchant" feature. Some sources say that some other bigger companies are already planning to accept crypto payments through their POS devices. So it's quite possible that Apple will also allow such transactions in the near future.
2022 is the year for Merchants and Customers to embrace Crypto
It is expected that the world cryptocurrency market will grow to $2.73 billion in 2025 at a CAGR of 13.8%, and it will definitely transform the world's financial system. It is important that merchants are ready to accept crypto payments so that their customers can pay with them too.
The future is cashless, and Apple is also ready to go with the flow. Apple Wallet will now be able to accept coins from the crypto community, beginning with Ethereum. The upgrade will allow iPhone users to store their crypto coins in a secure system, converting them into tokens for easy transactions.
In addition to cryptocurrencies, Apple also plans to add other new features, such as a reward system for frequent customers of certain businesses and support for all payment systems via NFC technology.
How do Crypto Payments benefit Merchants?
Merchants can receive fiat and other cryptocurrencies too. Such transactions will speed up significantly. They can enjoy lower transaction fees from their bank accounts as most of the banks are working with multiple exchanges and wallets to reduce their processing costs by 30%.
According to Visa's survey, the average transaction cost in traditional consumer payments is around 2.5%. However, it is significantly lower for merchants using cryptocurrency technology to accept payments as low as 0.7%, which is much lower than 2.5%. Here are some other benefits of using crypto for business transactions:
Transactions are instant and irreversible
Traditional bank transactions are fast, but crypto payments are way faster and take almost no processing time. Crypto payments are also irreversible. They are guaranteed that the payment will be processed unless their merchant account gets hacked and their crypto coins get stolen.
Customers are ready to embrace the new trend
Crypto payments are gaining popularity among youngsters. They feel more comfortable using them than cards or cash. In fact, they are much more confident using cryptocurrencies as compared to other payment systems. Young people between 18 and 34 prefer paying with cryptocurrencies to any other form of payment, including cash and cards.
Merchants can keep track of all transactions
Cryptocurrencies help merchants in analyzing customer behavior through blockchain technology. Blockchain technology is designed in a way that records all transactions of the crypto coin and makes these coins traceable. This feature helps merchants to keep track of all payments.
The cryptocurrency market has developed rapidly in recent times, and it is quite evident that cryptocurrencies are here to stay for a long. Merchants who are ready to embrace them will get huge benefits as compared to other businesses that deny or reject cryptocurrency payments.
Final Verdict
The cryptocurrency market is growing, and Apple offers to use it for wallet upgrades. They are very positive toward cryptocurrencies, and they want to embrace them soon. Now, it is up to merchants to take the right step and embrace this new technology that can improve their business performance.
As cryptocurrencies have become a popular medium for all kinds of payments, including cryptocurrency exchanges, retailers and even e-commerce platforms have started accepting them as a payment option. 2023 is said to be the year of mass adoption of crypto payments by merchants, and Apple's decision to place crypto wallets in their iPhones will certainly accelerate this process, leading to a cashless economy.
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