While it does not express the whole industry, a recent survey of four merchants that accept bitcoin (BTC) and other cryptocurrencies offers their experience on how this emerging payment method might help business.
After major crypto payments company, BitPay introduced four of its unpublished clients to study and advisory firm Forrester Consulting; the latter has found that crypto payments can attract new customers and purchase amounts more considerably than transactions made with credit cards.
Both companies did not uncover the respondents’ names, explaining that they serve an online gift card marketplace, gold, precious metals broker, domain name registrar, website hosting service, and computer and electronics merchant.
They announced that the entire eCommerce sales of between $100 million and $1.2billion, and the share of bitcoin and other cryptocurrency payments using BitPay is between 0.5% to 6.5% of total eCommerce sales, Forrester said, adding that for some merchants, a specific product line’s share of total sales is even higher, reaching 10% or more at times. Also, average order values for cryptocurrency sales are between one-half and triple the average for all sales, it added.
“First, up to 40% of customers that pay with crypto are new to the merchant. Second, purchase amounts are twice that of credit card purchases. Third, crypto is less expensive than card cards, and lastly, there are no fraud-related chargebacks,” BitPay mentioned.
In the meantime, the COVID-19 pandemic has led to a notable increase in online shopping across numerous countries, with Forrester citing data from a statement that showed 11% of consumer respondents said they used a digital payment method for the first time during that time. This has generated growth possibilities for all business forms that enable their customers to pay with cryptocurrencies, as suggested by the consultancy.
“While adoption of cryptocurrencies like bitcoin is still emerging,” the interviewed merchants managed to capture “significant benefits at relatively low risk and cost,” according to the study.