My top 5 takeaways from the crypto payment industry

Coming from a non-crypto background, crypto payments was a labyrinth of tech and compliance complexities that took me a while to get used to. However, once I was in it, it was hard not to note the following observations. 

People have ideas but execution is excruciating 

If there’s one big takeaway I’ve had, it’s that ideas are fun to play with but building and launching from scratch is not an easy feat. 

And that makes sense, there’s much to juggle once you get down to business. Building the solution is one part, dealing with regulations and licensing is a whole other ball game. Let’s say you’re a restaurant business and you want to accept crypto payments; it wouldn’t make sense to start building the entire payment stack from scratch right? You should be able to simply make transactions using crypto as you would with fiat currencies. 

Complex set up processes is why most businesses step away from expanding their payment solutions and offers. 

Compliance and regulation is catching up 

Doesn’t matter if it's the EU or US, compliance is a non-negotiable in the crypto payments industry. So there’s no way around it. But many businesses have realised that crypto regulation isn’t all that bad as MiCA aims to standardise regulations in the EU. 

Governments across the globe are now prioritising crypto regulations as stablecoins have picked up momentu amongst businesses. From Hong Kong strengthening oversight with new stablecoin licensing regime to UK’s former Chancellor pushing for more competent policies to catch up with Singapore, Hong Kong, and Abu Dhabi.

With governments waking up to crypto and stablecoins, that’s all the confirmation businesses and merchants need to know that crypto is no longer a niche industry.

The more [options] the merrier 

From virtual cards to payment links, there’s something for everyone. It’s why Telegram launched their built-in crypto wallet for the US market. And, PayPal’s Pay with Crypto option now allows US businesses to accept Bitcoin, Ethereum, and Solana and bypass cross-border fees. 

People want options, the market will provide it.

The mainstream markets’ expansion to crypto is yet another indicator for businesses still weighing the decision. The question now isn’t whether crypto will become mainstream, but rather what businesses will do to ensure they’re not left behind in the game. And the ones that make the move sooner than later, win.

Crypto is exciting but businesses need assurance 

Anything new is exciting but comes with the added baggage of an insecure market acceptance. Take the example of Oatly, the oat drink brand that’s now become a household name. The genius decision to start the product marketing by targeting cafe baristas instead of going directly for the milk aisle at the grocery store is what made it stick. 

Makes sense right? Instead of rotting away on the shelves, the beverage found its home at cafes where people could get a taste before adopting it into their routine. 

Similarly, when it comes to new payment options, going the Oatly way is better. Don’t overwhelm the audience by asking for their first born child upfront. Let them have a sip of the

rather confusing yet promising drink.

In fintech, we see this in the form of a crypto payment link solution. So instead of going through a lengthy, complex, and demanding integration process, businesses can simply add the payment link to their invoices instead. Customers pay in crypto, merchants receive in fiat. Win-win.  

And more importantly, it’s the easiest way to get businesses and users to adopt crypto for everyday payments. Businesses get to dip their foot in the crypto market and test out the demand before investing in a fully-integrated solution. 

More than just an asset. People want to pay with crypto 

Following up on the previous point, there are obviously factions that are pro asset-building and those who believe the true potential lies in making cryptocurrency spendable. But it’s interesting to note that despite what the HODL department thinks, 80% of users want to spend crypto on everyday purchases. And, 56% of users prefer to shop at stores that accept crypto over ones that don’t.

The stats don’t look so bad now, do they? Especially with the numerous new ways to pay, there’s no reason for crypto to not be more mainstream. 

Onward and upward: The way ahead for crypto payments

Even the biggest crypto critic and skeptic will admit the impressive growth and stability crypto has shown in the past couple of years. What started out an alternative to fiat has now made its way to the mainstream markets. 

Businesses still on the fence should note the overall acceptance in markets, government regulations, competition, and customer demands. It’s not a bubble waiting to burst, but the new norm.