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December 8, 2023

Can accepting crypto attract new customers?

Cryptocurrencies are here to stay. Speculations about the future of cryptocurrency have been around since its inception. From the launch of Bitcoin in 2009, when only a few truly understood the sector and bought their share of BTC, to its significant fall in 2017. Those who missed the early investment opportunities tried to console themselves by saying they always knew that crypto was nothing more than a fad and wouldn't last.

While it's true that the cryptocurrency market is extremely volatile, the crypto space continues to prove that this new mode of payment is here to stay. So, can accepting crypto payments attract new customers?

How to Spend Crypto

Cryptocurrency investors have always been able to convert crypto into fiat currency and spend their returns as they wished. However, each conversion incurred a certain fee. Centralized exchanges took a significant turn when they decided to offer their members payment cards, allowing them to spend crypto assets directly without first converting them to fiat.

This was an obvious improvement. Users can now avoid the additional costs of financial transactions and spend their cryptos anywhere that accepts card payments.

By giving crypto holders the ability to spend their assets freely, a massive customer base has opened up. With a market capitalization of nearly 2 trillion USD, cryptocurrencies are suddenly accessible to merchants worldwide. Crypto has gone from being a digital currency with limited real-world use to a freely accessible payment method, which has led to faster adoption.

Multiple Possibilities

Statistics have shown that the two main demographic groups spending crypto are Millennials and Gen Z, representing about 65% of the global population. Not long ago, only a few businesses accepted crypto payments. That's why crypto was mainly used to purchase more expensive items like cars, real estate, jewelry, luxury watches, high-tech gadgets, and artwork.

Today, crypto holders can use their cards to pay for everyday services. The collaboration between centralized exchanges and card issuers has been one of the biggest steps toward widespread cryptocurrency adoption.

From the User's Perspective

This decision has allowed millions of users to spend their crypto assets at any point of sale, unlocking exciting new opportunities for merchants.

Merchants now have the opportunity to tap into an entirely new customer base known for spending money on expensive products. The future looks promising, but one of the main pain points for merchants is still relevant: transaction fees.

As anyone working in the retail sector knows, card payments eat into a significant percentage of merchants' revenues. These fees can amount to as much as 4% of each purchase, depending on the card issuer.

However, with Lyzi, transaction fees do not exceed 3%, and users receive up to a 5% cashback on each purchase, allowing them to offset their fees.

From the Merchant's Perspective

Merchants can easily integrate the Lyzi payment network into their point-of-sale systems and start accepting crypto payments without any additional devices. Alternatively, they can use the user-friendly Pro app.

Customers can pay for their items using the dedicated cryptocurrency wallet. One of the significant advantages that Lyzi offers to merchants is zero transaction fees. Moreover, there are no intermediaries involved in these transactions, making them much less costly, and business owners can keep a more significant portion of their revenue.

The intelligence of the network also lies in the fact that merchants can choose to be settled in crypto or in their local currency. If merchants opt for fiat settlements, their business won't be exposed to losses due to the high volatility of the cryptocurrency market. On the other hand, businesses that accept crypto settlements benefit from instant payments.

Accepting Crypto Payments to Attract New Customers

Fintech reports all paint the same picture of a soon-to-be cashless society. Some European countries are expected to go cashless by 2024. Global circumstances like the Covid-19 pandemic, the Ukraine-Russia conflict, and others are only accelerating the transition to the digital payment era. E-commerce is also booming and is expected to grow by over 20% by 2023.

The acceptance of crypto and digital payments is no longer a matter of time; users are using them now, and merchants should too. The benefits are clear as day: merchants can access a new customer base, representing over 65% of the global population, attract high-end customers who buy more expensive items, and increase their income by paying lower transaction fees.

Taking the leap into cryptocurrency is an advantage over competitors who may not yet know if they're ready to enter the world of cryptocurrency. Overall, one thing is clear: when merchants start accepting cryptocurrency payments, customers will surely come to spend their crypto in their stores.

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