Many enterprises have added cryptocurrency as one of their payment options, it’s growing.
However, do corporate giants feel the same towards this idea? Maybe not.
Paypal has been on the news, they have over 325 million active user accounts from different parts of the world. They have been making considerations of making a direct sale of crypto assets with services.
eToro’s managing director for the United States, Guy Hirsch mentioned that the only importance of getting into crypto of companies like Paypal and Venmo is profound. He said that it will make a change of the cross-border transactions that are currently expensive and slow.
Facebook has already made the leverage of crypto for cross-border settlements, payments, and other cases to optimize for a global economy.
Back in May 2020, Gartner, a known advisory firm, has made warnings to big companies’ Chief Information Officers to be careful about claims that cryptocurrencies can make a success as an exchange of medium. The company mentioned that it may be used as a store of value, but not a medium of exchange for day-to-day commercial exchange.
The said study has tackled whether blockchain-based payments will reduce fees to an extent, as it claims. They mentioned that there’s a lack of clarity around tax treatments and most enterprises are not knowledgeable in handling cryptocurrency exchange risks.
“Cryptocurrencies will be challenged to make a meaningful impact on the existing consumer payments ecosystem over the near to medium term”, a Credit Suisse report said. The main problem cited is about taxation, regulatory uncertainty, and the lark of dispute processes.
The current system being inefficient
All that is left is to secure a safe and smooth transaction at a low cost. Gil Hildebrand, CEO of Gilded, a financial service provider, said that the idea makes it easy for people to reach them, “paying and paying them is still very fragmented and inefficient.
There are organizations accepting crypto as payment from their customers, said Saponaro. This enables people to pay their bills and taxes in some states in the U.S. BitPay’s chief marketing officer, Bill Zielke said that they are seeing an increase in demand for the idea of crypto payment services.
Some of the organizations that accept Bitcoin (BTC) and other cryptocurrency are Score, CARE, and the American Cancer Society. NBA’s Dallas Mavericks uses the Bitcoin as an alternative payment method for game tickets and their merchandise.