Cryptocurrencies Gain Traction in E-Commerce
Although the markets are currently undergoing a major correction, the number of retailers willing to accept cryptocurrency payments continues to increase, with the volume of online cryptocurrency purchases growing steadily in the e-commerce sector.
In fact, CoinGate, a cryptocurrency payment processor, found in a report published on January 4 that despite the “crypto winter,” the use of cryptocurrencies for online transactions is on the rise in 2022.
According to the study, merchants using CoinGate received 927,294 crypto payments in 2022, about 2.7x the annual average and a 63% increase from 2021. The figure is equivalent to CoinGate processing one paid cryptocurrency order every 34 seconds.
Bitcoin leads the rankings
Bitcoin (BTC) is responsible for more than half, or 48%, of all transactions in 2022, according to the survey results. This is only 7.6% lower than in 2021, suggesting that altcoin payments have marginally reduced Bitcoin’s dominance in payments despite the growing number of transactions.
In 2022, USDT was the second most popular cryptocurrency that was used for shopping, with a dominant share of 14.8%. It was followed by Ethereum (10.9%), Litecoin (9.6%) and Tron (5.8%).
Despite the overall market downturn, CoinGate saw a 48% increase in the number of newly registered merchants in 2022 compared to 2021. This includes industry giants like NordVPN to the list of businesses willing to accept cryptocurrency payments.
Retailers accepting crypto payments
Every year, the most popular argument put forward by retailers for accepting cryptocurrency payments is the same: improved access to services for consumers who are unbanked or worried about their privacy, ultimately leading to increased sales.
Since modern payment processors reduce the problem of fluctuating cryptocurrency prices by allowing for quick payments with fiat currencies, there aren’t that many reasons why merchants looking for creative methods to revitalize their companies should not consider implementing crypto payments.