Founder and CEO of leading strategic research agency, Fifth Dimension Consulting, Lyndall Spooner is urging businesses to adopt crypto as a form of payment to meet the needs of a growing base of consumers that are investing in and utilising digital assets – but to do it wisely.
“Our research shows that the customer experience is no longer about traditional elements such as contact points and product delivery timeframes, it is also about the capacity and speed of an organisation to adopt emerging technologies that facilitate an improved path to purchase and crypto falls into this category,” Spooner said.
“Businesses can no longer keep their head in the sand and pretend crypto doesn’t exist. It does and the world’s largest consumer group is investing in it and using it in a utilitarian way.”
Multiple research studies have shown that millions of Australians have an active interest in purchasing cryptocurrencies, which is highest among Millennials and Gen Z at around one in every three consumers.
“Many businesses across Australia already accept crypto as a form of payment. The blockchain sector has evolved significantly over the last few years and there are a range of trading platforms that provide businesses with the ability to accept cryptocurrency payments,” she said.
Spooner has outlined the benefits for businesses and customers in adopting crypto as a form of payment.
- Purchase convenience
“Adding crypto as a form payment provides an additional means of payment for shoppers. The more forms of payment, the improved customer experience for shoppers. In the online environment, brand owners need to understand that increased payment options grease the path to purchase. In many cases, it makes the decision to buy easier and more enticing,” Spooner said.
2. Funds are immediate
“For retailers, the availability of funds is almost immediate. Cryptocurrency trading platforms provide tools for businesses that enable them to receive crypto payments in fiat form quickly. This is much better than having to wait days for traditional credit card facilities to deposit funds into retailers’ bank accounts,” Spooner said.
3. Lower transaction costs
“The cost to process some cryptocurrencies is cheaper for businesses which means less costs are passed on to shoppers. Credit card payment providers usually charge an average transaction fee of one to two percent. Some crypto transactions can cost less,” Spooner said.
4. Global liquidity
“One of the biggest advantages of cryptocurrencies is the time and cost savings for cross border payments. Payments can be made 24/7, settle instantly and be relatively cheap to transact (depending on the token). Traditional FX systems cannot compete,” Spooner said.
5. Removal of chargeback fraud
“The risk of chargeback fraud is removed for businesses. Crypto payments are unchangeable which means once the payment is made, it cannot be reversed. Crypto payments are considered safer as well as they are less likely to be the target of fraud and DDos attacks,” Spooner said.
According to Binance Australia CEO, Leigh Travers, with Australia set to become fully cashless by 2031, crypto will play a bigger role in payments in the future.
“Australian crypto users and merchants will soon be able to accept and pay with crypto with increased ease thanks to Binance Pay – a contactless, borderless and secure user-to-user cryptocurrency payment feature on the Binance app with more than 40 cryptocurrencies supported,” Travers said.
“Binance Pay allows users to pay, send and receive crypto payments around the world without incurring any fees. It also allows merchant-based transactions, letting users and merchants choose their preferred payment options.”