The payments revolution in the crypto age

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Blockchain, AI, IoT, permeate our lives, and old traditional models and technologies are using them to stay ahead of the innovation curve presented by FinTechs. The age of technology has certainly helped accelerate the way we use and understand money. And now it confirms the emergence of cryptocurrencies. Cryptocurrencies have been around for 10 years, but they have only recently become “mainstream”. As of 2021, there are around 2,300 different digital currencies, and their use is expanding into the world of payments.

According to data from Coinmap.org as of May 2021, there are 22,271 crypto acceptance points around the world, including crypto retailers, cafes and ATMs.

In fact, as more people invest and acquire cryptocurrencies, businesses and retailers are considering adopting tools to accept them as payments. This can benefit businesses by expanding sales opportunities in international markets, bringing speed and cost benefits, avoiding conventional currency conversions, and increasing transparency, efficiency and ease of use. payments.

Mastercard has announced plans to implement support for certain cryptocurrencies in its network, based on an internal survey that found that around 40% of consumers in 18 countries intend to use crypto as a payment method for the foreseeable future. In fact, 77% of young people in the survey expressed a desire to learn more about digital assets, and 75% of them said they would use cryptocurrencies if they understood them better, highlighting the opportunity to attract the most progressive customers.

In cross-border e-commerce, there has been increased support for crypto, most notably PayPal, which has allowed US customers to pay merchants around the world in a variety of crypto currencies, converted to local currency when trading. the transaction. Then there’s Jeff Bezos’ announcement of the option to pay with Bitcoin on Purse.io.

But, the acceptance of crypto payments is not limited only to businesses that have contact with consumers. Some B2B cross-border payment companies have also started to move into the space. And, according to Juniper Research, the reach of cross-border cryptocurrency payments is expected to grow more than 25 times over the next two years, reaching $ 4.4 trillion in 2024.

Although innovators and digital challengers have embraced cryptocurrency, some established payment companies remain skeptical of the technology. For example, Adyen CEO Pieter van der Does indicated that adding crypto payment methods was not on the company’s agenda, arguing that the volatility of cryptocurrencies such as bitcoin made it more of an investment asset than a method of payment.

It remains to be seen whether cryptocurrencies will replace traditional payment methods or not. Nonetheless, with the growing interest and support from consumers and payment companies, it is clear that we will see a lot more use of cryptocurrencies as a payment method in the future.

It’s not just the FinTech industry payment solutions that utilize the blockchain and digital asset markets. Other exciting technologies and solutions are gaining popularity and notoriety.

An example from the trading industry is Exberry, which provides a high-tech trading infrastructure solution that offers an Exchange-in-a-Box for the markets. Exberry’s cloud-native matching engine provides an asset-independent, flexible and cost-effective solution. Replace old obsolete technologies and reshape the world of marketplaces.

Easily integrated with blockchains and other ecosystems, Exberry enables disruptors and established players to launch new ideas and projects in no time.

It is important to note that the cryptocurrency industry has generated significant interest and investment from both retail and institutional investors. For example, last week saw the biggest Series B round in Latin American history and SoftBank’s biggest investment in a Latin American crypto company, Mercado Bitcoin having raised $ 200 million. dollars in a fundraiser. The investment round secures 2TM Group, the parent company of Mercado, at a valuation of $ 2.1 billion, placing it among the top 10 unicorns in the region.

Another strong indication is the native DeFi Nansen crypto tracer, as it also generated $ 12 million in a Series A funding round.

These examples indicate that cryptocurrency companies are among the major sub-sectors and as more and more investors are interested in promising crypto-related startups, the launch of new and innovative solutions in the field will continue to grow. , securing the market size of over $ 1,087.7 ​​million for crypto by 2026.

Interested in learning more about the topic, exploring different crypto-based solutions, and networking in person with other FinTechers?

Join FinTech-Aviv, the Israeli FinTech Association in the upcoming celebration of Binance’s 4th anniversary, themed The Payments Revolution in the Crypto Age

July 14, 2021 at 6:00 p.m. IDT.

Location is: WeWork (6th Floor), Shoken 23 Street, Tel Aviv

Rooftop event

Register for the event here: https://www.fintech-aviv.com/july14

Author: Tal Sharon

#Bitcoin #Cryptocurrencies #Payments #Innovation #FintechAviv

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