Cryptocurrency shopping trends during the current holiday season have indicated that shoppers are willing to try out cryptocurrencies on a major scale.
Recently, cryptocurrency merchant BitPay’s retail statistics have indicated interesting perspectives on the matter. E-Crypto News caught up with Bill Zielke BitPay’s CMO to talk about this. Here is what he had to say.
Bill Zielke CMO BitPay
- Stablecoins seem to be a part of the cryptospace, but usage remains marginal. What’s the BitPay story? Why do you think this is happening?
BitPay is seeing an increase in use for stablecoins for businesses who transact cross border and need a faster and most cost effective payment method.
Legacy methods like wire and bank account transfers are slow and expensive. Many businesses also do not want or can’t hold crypto on their books and as a result, BitPay is an attractive option for crypto payment processing.
Because Stablecoins are pegged to the US Dollar, they are a great low volatility option for payments for many businesses.
Stablecoins allows businesses in the West to receive settlement in less than an hour and any business around the world to receive stable settlement pegged to an internationally accepted currency.
We also expect this trend to continue as companies look to save money and receive settlements faster.
2. Bitcoin remains the king of the hill. Do you think shoppers will turn to Altcoins or will we see Bitcoin dominance remain during this shopping season?
Yes, bitcoin is the oldest and most established blockchain, but we do see other coins including Bitcoin Cash and Ether that offer a good payment option and expect them to continue to grow.
Our most recent stats show a shift towards alternatives in November compared to prior months.
3. What are the benefits of shopping using cryptocurrencies to pay?
Many retailers save money in comparison to traditional credit cards for each transaction and many pass those savings on to consumers who pay.
In addition, retailers attract new buyers and sales from people who prefer to pay in crypto.
Many BitPay-enabled retailers offered deals when you pay in crypto during Bitcoin Black Friday and those deals were available in our BitPay Merchant Directory And just this week, The Dallas Mavericks dallasmavsshop are offering a $25 Gift Card with any Bitcoin/BitPay purchase of $150 or more. Offer valid only on DallasMavs.Shop now through 1/31/20.
4. What are the trends regarding purchased products and services?
For 2021, BitPay sees merchant and consumer adoption will continue to accelerate, and more and more businesses and consumers will turn to bitcoin and other cryptos as a means of commerce and for transacting.
5. From the BitPay statistics, there is a significant drop in the average transactions per month. Why do you think this occurred?
As many people are home due to Covid, we are seeing an uptick in purchases for day-to-day items and with that consumers this holiday are spending more on purchases when compared to other months this year with the average order volume up 15%.
We believe they are buying more with each purchase and making fewer overall purchases.
6. There is also an increase in retail spending across the board on the BitPay platform. Why do you think people are increasingly buying stuff on a retail basis using cryptocurrencies?
With bitcoin price hikes, consumers are spending crypto for luxury purchases like never before while new merchants enter the space.
As an example, in 2020 BitPay helped top retailers sell Bugattis, ski chalets in Tahoe, condos in Manhattan, lavish watches and jewelry, even luxury motor yachts.
7. The statistics also show a dramatic rise in Ethereum usage. Why do you think this is happening?
BitPay is seeing an increase in use from cryptos other than Bitcoin, like ETH. These blockchains are growing fast because miner fees are lower making them ideal for day to day purchases for things like food, travel, electronics and clothing.
We expect this trend to continue/accelerate due to Covid and growing consumer preference for digital payments and more people shopping online.
Consumers are also buying gift cards this holiday and loading their BitPay Debit Card using crypto for spending at retailers that have yet to accept crypto.
We believe this is in part because ETH customers have an outlet for spending their crypto.
8. Usage of other Bitcoin wallets is increasing across the cryptospace. Why do you think this is happening?
As wallets are becoming easier to use, more people are willing to try out crypto. And the more features the wallet has – say the ability to purchase gift cards in real time – consumers are able to use crypto at merchants familiar to them.
We are also seeing customers who have a wallet get more than one – similar to a person having a checking, savings, and investment account.
9. If you could see into the future, say in ten years. What do you think cryptocurrency usage will be like?
This summer, BitPay will celebrate its 10 year birthday and over the years we have seen many changes, but none like the momentum, growth, and interest occurring right now.
BitPay believes that with continued adoption and increased regulatory involvement, the industry will reach an inflection point that will forever change consumer confidence, trust and pave the way for blockchain payments to disrupt the way consumers receive and spend funds.