The Future of Cryptoasset Payments in 2023

Cryptoasset Payments: A New Era of Efficiency

Cryptoassets have reached a point of readiness for widespread adoption thanks to advancements in scaling and interoperability. As the decentralised finance (De-Fi) markets expand, the use of digital currencies in e-commerce, for example, is rising, with approximately 100,000 businesses worldwide now embracing cryptoasset payments.

As we look to the future, the potential of cryptoasset payments cannot be ignored. The advantages they offer, the transformative power of distributed ledger technology (DLT), and the growing influence of digital currencies are shaping the path towards a new era of payment systems. In this article, we discuss the promising future of cryptoasset payments.

Why Many e-Commerce Brands are Supporting Cryptoasset Payments

The advantages of paying with digital currencies are multifaceted. Firstly, they offer faster transaction speeds, making it possible to settle payments in seconds or minutes. This speed starkly contrasts with traditional payment methods that often involve lengthy processing times, especially in cross-border transactions. Additionally, there are no restrictions on cryptoasset payments due to conventional banking hours or holidays.

Because of the convenience and flexibility of cryptoassets, many e-commerce brands are embracing digital currency payments. Below, we discuss why so many businesses are supporting cryptoasset payments in 2023:

1. Reduced Transaction Costs: Integrating cryptoasset payments into an e-commerce site offers a significant advantage in terms of cost. Unlike traditional e-commerce transactions, blockchain transactions typically incur lower fees, averaging around 1%. By adopting digital currency payments, a business can boost its online profit margins and optimise its financial efficiency.

2. Expanding Market Opportunities: The global user base of digital currencies continues to snowball. By incorporating cryptoasset payment options into a business' online platform, owners can tap into this expanding market and attract new customers. 

3. Enhanced Security: Blockchain technology, the backbone of digital currencies, offers enhanced transaction security. With no central authority controlling funds, the risk of fraud and cyberattacks is significantly reduced. Accepting cryptoasset payments demonstrates a commitment to safeguarding customer transactions and data. This increased security can positively influence the public's perception of an e-commerce business.

4. No Intermediaries: One significant advantage of adopting digital ledger technology (DLT) is the removal of intermediaries, resulting in faster transactions and reduced costs. With DLT, payments occur directly between parties, eliminating the need for traditional financial institutions and further lowering transaction fees.

Embracing cryptoasset payments is a strategic move that can unlock new opportunities and give brands a competitive edge in the evolving digital landscape.

“Transforming the Way Money Moves” Report

The increasing adoption and acceptance of digital currencies by merchants and businesses worldwide have created ideal conditions for integrating digital currencies into everyday transactions. Notably, major companies like Microsoft, AT&T, and renowned sports teams have started accepting cryptoasset payments, signalling a growing acceptance of this alternative form of payment.

According to the "Transforming the Way Money Moves” report, blockchain technology and digital assets will continue to play a significant role in shaping the future of payments. It highlights that 97% of respondents believe blockchain technology will enable faster financial transactions, underscoring the transformative potential of DLT in the payment industry. Moreover, the report recognises the role of digital assets in revolutionising cross-border settlements, further solidifying their importance in the global payment ecosystem.

XEROF agrees with the findings of this report, which is why we created XEROF Pay. Merchants can use XEROF Pay to access frictionless ramps, easily accept cryptoasset payments, and seamlessly exchange digital currencies for fiat currency. This technology eliminates the risk for the merchant, allowing them to focus on providing their goods and services without worrying about the security of their payments.

The Future of Cryptoasset Payments

Looking ahead, the future of cryptoasset payments is incredibly promising. The benefits and advantages of digital currencies, coupled with the continued advancements in blockchain technology, drive the adoption and acceptance of cryptoasset payments. As reports indicate, the growing interest from customers and businesses illustrates the demand for cryptoasset payment solutions. Businesses recognise the competitive advantage of enabling cryptoasset payments, and customers are increasingly interested in using digital currencies as a preferred payment method.

As technology continues to evolve, we can expect further innovations in payment systems that will enhance the ease, speed, and security of cryptoasset transactions. Integrating more digital currencies into payment platforms will offer users a broader choice of digital assets for their transactions. Furthermore, regulatory frameworks will play a vital role in shaping the future of cryptoasset payments, ensuring consumer protection, and fostering trust in this evolving financial ecosystem.

If you would like to learn more about XEROF Pay or have any other questions, please contact us to arrange a meeting or learn more about all our services.