Rising adoption: Bitcoin and crypto continue to make their way into companies’ payment systems

Say what you will about crypto, but there’s no denying the remarkable evolution of this nonconforming asset class. From the moment they rolled out into the financial sector, digital currencies have been equally criticized and praised but never ignored. They started out as outcasts and ended up becoming a constant presence in the world of finance, gaining more popularity and adepts by the day. In the beginning, putting crypto on par with fiat money seemed like an unlikely prospect. Who would have thought that one day people would be able to buy all sorts of things with crypto? But that’s exactly where we are today. 

The trend of accepting crypto payments has been rising over the past few years, with major companies like Microsoft, Apple, PayPal, Starbucks, KFC, and others setting the tone for the rest of the world. As a result, more and more companies of all sizes and across all industries have started doing the same or are contemplating the idea of integrating Bitcoin and other cryptocurrencies into their payment systems and giving clients the possibility to use these assets to purchase goods and services. So, we’re seeing the conversation shift from the best way to buy Bitcoin to the best way to spend Bitcoin. 

How have we come to this point, what can one buy with crypto and what are the implications of this rapid rise in crypto payment adoption for the cryptocurrency industry? These are the questions that require an answer right now.  

What’s causing the rise in crypto payments? 

According to Statista, crypto payments are expected to increase annually by 17% until 2030. At the same time, crypto ownership rate has risen by 34% in 2023, going from 420 million to 562 million crypto users worldwide. 

One might assume that the main reason why an increasing number of businesses have started accepting crypto as a form of payment, either directly or via third-party payment processors, is because they are following the example of leading companies that have already taken this step. However, the herd mentality is not necessarily the best explanation for this trend. As influential as leading companies may be, smaller enterprises aren’t mindless entities that thoughtlessly mimic the decisions of their larger counterparts, so there must be other factors at play here. 

Crypto’s growing popularity might be one of the reasons for this spike. After more than a decade since Bitcoin’s birth, it’s become clear that cryptocurrencies aren’t going anywhere. In the meantime, both companies and customers have become a lot more familiarized with digital assets and have started to warm up to them. Crypto is no longer seen as a fringe investment mechanism that only appeals to the tech-savvy or those with a penchant for high-risk assets but as a valid financial instrument. This shift in perspective has facilitated its entry into companies’ payment systems.    

Another factor that has contributed to crypto being accepted as a payment method is the emergence of regulatory frameworks for the crypto industry. With crypto becoming an integral part of the financial system, regulators around the world have started developing specific rules and regulations that could address industry risks and ensure a safe use of digital assets for all parties involved. The increase in regulatory clarity alongside the growing crypto adoption by traditional institutions has encouraged companies to embrace crypto payments.  

Lastly, companies have started to recognize the advantages that including crypto as a payment option can provide. Crypto payments can help companies enjoy higher enhanced transaction security, ensure faster transactions, lower payment fees, reduce the risk of unjustified chargebacks, and attract new customers. Obviously, there are also risks and challenges that businesses have to take into consideration before taking the leap, but for many of them the benefits trump the cons. 

Where can you spend your cryptos?  

Your crypto stash has been growing, but you don’t know what you can buy with it? Here’s a list of merchants and retailers that will be more than happy to receive your crypto. 

• Apple – whether you want to buy the latest iPhone model or any of the products that Apple offers, your Bitcoin is as good as any other currency out there 
• Microsoft – the tech giant accepts Bitcoin payments via BitPay, so you can download games and apps and purchase other tech products that the company offers
• Starbucks – the multinational chain has integrated a Bitcoin wallet within their app, allowing customers to buy goods directly with BTC
• Bloomingdale’s – you can shop items in every category at Bloomingdale’s via the Crypto.com App
• Alternative Airlines – the company offers Bitcoin, Ethereum, Dogecoin, and other crypto assets as a payment option at checkout 

Other companies that accept Bitcoin indirectly, via gift cards, include Christian Dior, Nike, Disney, PlayStation, Walmart, and others, so you can spend your crypto on an extensive range of products. 

What this means for Bitcoin & Co. 

As more companies are opening their doors to crypto payments, the cryptocurrency industry is bound to be impacted by the trend. When Tesla announced they would start accepting Bitcoin payments, the news caused great excitement in the market, pushing the BTC price up. Although the EV manufacturer went back on their decision in 2021, this proved just how responsive the market is to these types of events. 

However, it goes beyond temporary price spikes. The inclusion of Bitcoin and other digital currencies in companies’ payment structures not only bolsters crypto’s legitimacy and credibility, but also increases its liquidity. This boosts people’s trust in digital assets while also ensuring greater stability and reducing market volatility. 

Moreover, this increased adoption could accelerate crypto’s integration into mainstream finance. With backing from companies and major institutions, governments will have no option but to adopt a more positive stance towards crypto and develop more lenient regulations. 

Given all these promising developments, one can assume it’s only a matter of time until crypto payments become the norm all over the world.