The digital payments space is growing rapidly, as more businesses adopt it. According to a blog post by CoinGate, while the markets are in a severe correction, cryptocurrency payments continue to rise steadily with an increase in the volume of purchases made online.
Crypto Transactions as a Payment Method Increased by 63%
CoinGate, a crypto payment processor firm, started processing cryptocurrency payments for businesses in 2014, and since then merchants have received over 2.5 million customer payments for their goods and services, for an average of 312,500 orders per year.
In 2022, merchants using CoinGate received 927,294 crypto payments, which was 2.7 times higher than the annual average and represented a 63% increase from 2021. This equals a paid order processed by CoinGate every 34 seconds.
Justas Paulius, CEO of CoinGate, highlighted in an interview with Finbold that payments were not affected by the crypto winter. The executive pointed out the roles businesses can play in fostering crypto adoption. He also noted that people shifted a bit from free-floating coins to stablecoins.
BNB And ADA Enters Top 10 Most Spent Crypto In Commerce
Merchants on CoinGate can accept payments in more than 70 different cryptocurrencies. Crypto payments will become a more popular alternative to their traditional counterparts as prices and benefits rise.
The research found that in 2022, 48% of all transactions were done using Bitcoin. It is 7.6% lower than in 2021, which means altcoin payments have somewhat reduced Bitcoin’s dominance in payments despite the rising number of transactions.
The second most popular cryptocurrency for shopping was Tether (USDT), with a 14.8% share. Next came Ethereum (10.9%), Litecoin (9.6%), and TRON (5.8%). Additionally, in 2022 some coins reached the top 10 most widely used cryptos list for the first time – Binance Coin (BNB) (3.5%) and Cardano (ADA) (1.1%).
CoinGate Sees 48% Increase In New Merchant Signups
CoinGate has seen a 48% increase in the number of new merchant signups in 2022 compared to last year, with industry leaders such as NordVPN joining their list of crypto-friendly merchants. Merchants accept crypto payments to make their services more accessible to unbanked customers and to protect the privacy of their customers, which leads to more sales.
According to the CEO of IT infrastructure service provider Cherry Servers, Vaidas Rutkauskas, accepting crypto payments was one of their most successful business decisions in a long time. He further stated that crypto payments have been integrated based on customer needs, with a majority preferring to pay with crypto. The innovation was well-received by customers and has allowed the company to offer its services to a wider range of customers. Currently, a large portion of their payments come from crypto, and consistent growth has been observed.
Donatas Strazdas, a financial analyst representing VPN provider Surfshark, also shared his thoughts on the benefits of cryptocurrency payments. He stated that in order to allow customers who prioritize privacy on the internet to use the product, the company has decided to introduce cryptocurrency payments. Emphasizing that these payments are decentralized and completely anonymous, which makes them an acceptable payment method for some customers.