Can Accepting Cryptocurrency Attract New Customers?

Cryptocurrencies are here to stay. Speculation about the future of cryptocurrency has circulated since its inception. From the launch of Bitcoin in 2009, when only a few truly understood the sector and bought their share of BTC, to its significant drop in 2017. Those who missed the early investment opportunities consoled themselves by claiming that they always knew crypto was nothing more than a fad and wouldn’t last.

While it is true that the cryptocurrency market is extremely volatile, the crypto space continues to demonstrate that this new payment method is here to stay. So, can accepting crypto payments attract new customers?

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How to Spend Cryptocurrencies

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Cryptocurrency investors have always been able to convert cryptocurrencies into fiat money and spend their earnings as they wished. However, each conversion came with fees. Centralized exchanges took a significant turn when they decided to offer their members payment cards, allowing them to spend crypto assets directly without first converting them to fiat.

This was a clear improvement. Users can now avoid additional costs associated with financial transactions and spend their crypto anywhere card payments are accepted.

By giving cryptocurrency holders the ability to freely spend their assets, a huge customer base has been opened up. With a market capitalization of nearly $2 trillion, cryptocurrencies are suddenly accessible to merchants around the world. Cryptocurrency has shifted from a digital currency with limited real-world use to a widely accessible payment method, facilitating faster adoption.

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Multiple Possibilities

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Statistics have shown that the two main demographic groups spending cryptocurrencies are Millennials and Gen Z, who make up about 65% of the global population. Not so long ago, only a few businesses accepted crypto payments. As a result, cryptocurrency was primarily used for purchasing higher-ticket items such as cars, real estate, jewelry, luxury watches, high-tech gadgets, and artwork.​

Today, cryptocurrency holders can use their cards to pay for everyday services. The collaboration between centralized exchanges and card issuers has been one of the most significant steps towards widespread cryptocurrency adoption.

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From the User’s Perspective

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This decision has allowed millions of users to spend their crypto assets at any point of sale, creating exciting new opportunities for merchants.

Merchants now have the opportunity to access a new clientele known for spending money on high-ticket items. The future looks promising, but one of the primary issues for merchants remains: transaction fees.

As anyone in the retail industry knows, card payments can take a significant percentage of merchants’ revenue. These fees can reach up to 4% of each transaction, depending on the card issuer.

However, with Lyzi, transaction fees are capped at 3%, and users receive up to 5% cashback on each purchase, allowing them to offset their costs.​⬤

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From the Merchant’s Perspective

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Merchants can easily integrate the Lyzi payment network into their point-of-sale systems and start accepting crypto payments without any additional hardware. They can also use the user-friendly Pro app.

Customers can pay for their items using a dedicated cryptocurrency wallet. One significant advantage Lyzi offers to merchants is the absence of transaction fees. Additionally, with no intermediaries involved in these transactions, they are much less costly, allowing business owners to retain a larger share of their revenue.

The network’s intelligence also lies in the fact that merchants can choose to be paid in cryptocurrencies or in their local currency. If merchants opt for fiat settlements, their business will not be exposed to losses due to the high volatility of the cryptocurrency market. On the other hand, businesses that accept payments in cryptocurrency benefit from instant transactions.

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Accepting Crypto Payments to Attract New Customers

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Reports on financial technologies paint a consistent picture of a soon-to-be cashless society. Some European countries are expected to transition to cashless payments by 2024. Global circumstances such as the COVID-19 pandemic and the conflict between Ukraine and Russia are only accelerating the shift to the digital payment era. E-commerce is also booming and is projected to grow by over 20% by 2023.

Accepting crypto and digital payments is no longer a matter of timing; users are already utilizing them, and merchants should follow suit. The benefits are clear: merchants can tap into a new customer base, representing over 65% of the global population, attract high-end customers who purchase higher-ticket items, and boost their revenue by paying lower transaction fees.

Making the leap into cryptocurrency is an advantage over competitors who may still be unsure about entering the world of crypto. Overall, one thing is clear: once merchants start accepting cryptocurrency payments, customers will inevitably spend their crypto at their stores.

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