Will crypto be the future of the business world?
Within the past few years, the business world has seen a lot of changes in how money moves. A good example is how the world has significantly shifted to credit cards and mobile wallets. In fact, according to IMARC Group, the global credit card payment market size has already exceeded $690.6 billion and could continue growing by a CAGR of about 6.66% in the next few years.
But now, other trends like crypto are knocking louder than ever, asking to be let in – not just as payment methods, but a whole new economic infrastructure. However, before we even look at how this may be possible, consider how easy tracking and trading digital assets has become. Take eth to aud, for instance.
Just within seconds, a business in Melbourne can calculate and convert Ethereum to Australian dollars and seamlessly make payments to a supplier in the US. As simple as it may sound, this example shows just how digital currencies are breaking down international barriers and making commerce more connected than ever. To learn more about what drives the crypto buzz in the business sector, continue reading.
The growing demand for instant payments
Unfortunately, statistics by Growfin show that about 54% of small-scale businesses experience delayed payments of up to 6 days on average. This can really affect a business’s competitiveness due to struggles in meeting obligations, investing in growth or even hiring new employees. And this comes at a time when no one wants their funds delayed.
To cater to this preference, businesses have been adopting real-time payment infrastructures. Surprisingly, these infrastructures can actually lead to higher conversion and retention rates. According to PYMNTS.com, 78% of consumers consider instant payments as important parts of their experience, emphasizing how important they have become. And, of course, customers who have great encounters normally have higher chances of returning.
Looking at the statistics, WiserNotify suggests that almost all consumers (96%) are more likely to remain loyal because of such great experiences. As if that’s not enough, 86% are willing to pay more for such encounters. Given the super competition in commerce, more businesses may turn to crypto to take advantage of these statistics.
Crypto’s security allure
No one is willing to interact in an environment that could compromise their safety. In fact, with Exploding Topics noting over 940,000 attacks per day, you don’t want to ignore online security, even for a second. And mark you: threat actors always reinvent themselves and even use technology to strengthen their efforts.
As a business seeking long-term survival, this is not a trend to ignore. Especially now that recovering from cyberattacks has become costly, the need for more advanced security approaches is apparent. Actually, IBM claims that you might need at least $4.88 million, a cost that could increase in the coming days.
Besides, you risk hurting your brand reputation and losing a significant share of customers. Just recently, Security Magazine noted that 83% of customers were hesitant about returning to a platform following a breach, with 21% confirming that they may never return. Thankfully, more secure infrastructures like crypto can help avoid missing out on this security-conscious audience.
Crypto applies a decentralized technology that distributes data across multiple nodes in the network, reducing the consequences of single-point failures associated with traditional methods. Plus, its immutability ensures that data can’t be manipulated once stored, increasing transparency. In terms of encryption, digital currencies apply very advanced encryption, which makes it hard for malicious persons to access sensitive information.
Since many customers are working hard to improve their online privacy, more businesses could open up to crypto to improve their relevance to this audience.
Reaching numerous audiences
Some experts claim that about one billion people use cryptocurrencies worldwide. On top of that, others suggest that more than two-thirds (67%) of crypto holders intend to use these tokens for transaction purposes in the future. Surprisingly, 52% already use them for payments.
No wonder many businesses are integrating crypto payments into their systems. Remember, one of the ways businesses improve their competitiveness is by paying attention to consumer-centricity. You want to align your platform to changing preferences as much as possible. Following projections by SuperOffice CRM, focusing on customer centricity can improve profitability by as much as 60% than if you wouldn’t have.
But that’s not all – a good percentage of the world’s population still struggles with financial exclusivity and cannot access primary financial services. For a brand that competes on a global scale, this is not a group you want to ignore.
Cryptocurrency ensures this population can seamlessly transact by reducing the barriers to accessing a financial account. Plus, the cost of transacting digital currencies is way reduced, as there is no need for intermediaries. Now that, according to superteamhq.com, 68% of businesses spend unnecessarily high transaction fees on cross-border payments, infrastructures like crypto that hold the promise of avoiding such costs are usually welcome.
Although replacing traditional finance might not be entirely possible, crypto is slowly carving out a permanent spot in the business. With its captivating features like quick payments, crypto has attracted the attention of many business owners seeking to improve their competitiveness.
Plus, at a time when cyberattacks are rising and financial inclusion discussions continue to soar, businesses have been increasingly adopting them. But since it has challenges like volatility, you may want to keep an eye on it to see whether it will dominate the future of the business world or not.
