Payment Opportunities in Cryptocurrency
Today’s digital payment methods continue to stir up curiosity in businesses and consumers who want to have access to faster and smoother transactions. With a majority of transactions done online now, there is a rising opportunity in cryptocurrencies as another way for businesses and financial institutions to stay competitive.
What is Cryptocurrency?
Cryptocurrencies are digital or virtual currencies underpinned by cryptographic systems. They enable secure online payments without the use of third-party intermediaries which allows them to exist outside control of governments or central authorities.
“Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions. One type of cryptocurrency is the popular Bitcoin.
Cryptocurrency is Becoming Familiar
The public seems to now be grasping the idea of cryptocurrencies. There has been a shift from a general misunderstanding of what these payment methods offer to understanding that these digital assets could fasten and smooth out transaction processes. Examining the potential benefits that cryptocurrencies offer allows for the opportunity to provide financial service providers edge for growth.
Digital payments, utilizing cryptocurrency, continue to trend upwards for both merchants and consumers. According to a recent study, 48% of investors in the U.S. bought cryptocurrency in the beginning half of 2021. 69% of the respondents who currently own cryptocurrency in this study were 44 years of age.
Merchants May Use This Payment Type with Mastercard Announcement
Although cryptocurrency payments are on the rise, there is a lack of merchants who accept this type of payment. A recent survey showed that 67% of cryptocurrency owners acknowledge there is an absence of merchants who accept payments using digital currencies. But that soon may change with Mastercard announcing that any bank or merchant on its vast network can soon offer crypto services.
“We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing,” Sherri Haymond, Mastercard’s executive vice president of digital partnerships, said in an interview according to CNBC.com. “Our partners, be they banks, FinTech’s or merchants, can offer their customers the ability to buy, sell and hold cryptocurrency through an integration with the Baktt platform.” The announcement could lead to a significant expansion in the way that cryptocurrencies are used in the U.S. for both merchants and consumers.
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