It’s no secret, with rising interest rates and the US Federal Reserve selling bonds in an attempt to control inflation, speculative assets have suffered more than anything else and with a slump in technology stocks it seemed almost inevitable that cryptoassets would perform much worse than traditional markets as investors offset risk and try to cover losses.
Cryptoassets such as Bitcoin and Ethereum which are usually in demand relative to the amount of transactions on the blockchain network itself have seen almost 70% wiped off of their market capitalisation. Yet usage of blockchains remains stable with the number of daily transactions over the last 6 months at almost the same level seen during ‘cryptomania’ in 2021. On an even more positive note, crypto is still projected to be one of the fastest growing industries leading up to 2030 with a projected cumulative annual growth rate of over 7.2%.
For businesses themselves this is even more interesting as the majority of these transactions are between peers and those interacting with decentralized exchanges to buy and sell cryptoassets. As a result, supporting crypto payments in itself still remains as a major competitive differentiator that allows adventurous businesses to capitalize on growing out their user base both domestically and abroad. Businesses investigating their own sector are likely to see there are few options available for crypto users, yet are likely to find gift cards available for companies in their industry available with cryptocurrency on the likes of Bitrefill - a savior to many users who have funds tied up on-chain.
The risk of handling cryptocurrencies is also changing, with increasing options available for stablecoins pegged to various fiat currencies. Many of these stablecoins are now regulated, regularly audited, and exist within safe jurisdictions such as USDC and EUROC backed by Circle and Coinbase, GUSD which is managed by Gemini an exchange launched by the Winklevoss twins in 2015, and long-running decentralized alternatives such as DAI which is run by MakerDAO and collateralized by other stablecoins, bitcoin, and ethereum. Using these stablecoins businesses can offset the volatility of temporarily holding crypto over an earnings period prior to cashing out, a more realistic output for businesses looking to venture into the web3 space without the typical risks.
Improved user experience
Another important factor to consider is that with improved UX from wallet providers, expanding knowledge on smart contract engineering and the rise of hybrid applications it is becoming easier and more understandable to interface with public blockchains like Ethereum. As a result companies in the space are now moving away from advanced financial concepts designed for the few and are beginning to port traditional applications across to web3 with a focus on building for everyone. Radom Pay for example with its hybrid application allows users to sign in with a wallet, in the same fashion that users would typically sign-in with a google or microsoft account in web2. At the same time it was our intention to build Radom in a way that allows businesses to set-up crypto payments in a similar fashion as they have come to expect with traditional applications offering similar functionality with credit and debit card payments.
Integration times have also decreased and the days of having to hire a dedicated blockchain engineer are long gone with many applications in the space are moving towards abstracting away much of the complexity of having to interact with blockchains directly. As a result more applications in the space are offering the ability to interact with standard web2 style REST APIs that fit in with the skill set of developers across the entire tech industry. Radom Pay for example offers a simple yet powerful set of APIs for our hosted checkout alongside various no-code solutions which go a step further removing the need for any development experience for businesses looking to use payment links and invoices to bill their customers with cryptocurrencies.
The right time to start your web3 journey
The argument for bringing in support for crypto payments appears to be strong, with the ability to differentiate your business and to include over 420 million crypto users into your addressable market, increasing competitiveness whilst also reducing the need to invest into your product suite during times of economic uncertainty. Radom Pay enhances the argument even further with its simple hosted checkout integration, the option to get set-up in under five minutes with our no-code payment link solution, and invoicing solution that is perfect for service companies looking to expand their web3 client base. Adding to that Radom Pay brings brand new features to crypto payments by offering the same advanced functionality provided by traditional payment solutions, offering automated subscription billing, metered billing, discount codes, and graduated pricing allowing you to roll-out your current pricing model to crypto payments in minutes.
Feeling bold? Want to hear more about what crypto payments can do for your business? Get in touch with our sales team here.