Though the markets are presently going through a hard correction, retailers who intend to embrace crypto payments are increasing in number. Subsequently, a steady rise is being witnessed in the overall volume of crypto buyouts carried out online in the sector of eCommerce. In this respect, a crypto payment processing company called CoinGate published a research report recently.
CoinGate’s Report Says 2022 Sees 60% Increase in Volume of Crypto Payments Related to eCommerce
In that report, the firm noted positive findings notwithstanding the deepened crypto winter. As per it, the crypto use for online transfers in 2022 expresses a continuous upsurge. The research signifies that in the previous year, merchants utilizing CoinGate have obtained up to 927,294 payments in crypto. This figure is 2.7 times bigger than the yearly average as well as denotes a 63% rise since the previous year.
As per the results of the research study, Bitcoin (BTC) was accountable for more than half (nearly 48%) of the entirety of transfers done in the former year. Interestingly, it equals nearly a 7.6% ratio lower than its position in 2021. This indicates that the payments made in altcoins have marginally lowered the dominance of the primary crypto Bitcoin in payments notwithstanding the expanding transfers.
In the previous year, USDT took the 2nd position among the most prominent crypto tokens utilized for shopping. Its percentage for being used was around 14.8%. After the stablecoin, came Ethereum, Litecoin, and TRON with 10.9%, 9.6%, and 5.8% proportions. Though the crypto market went through an overall slump during 2022, CoinGate pointed out a 48% rise in the sum of the latest registered merchants in the previous year after 2021.
This takes into account, the biggest players within the market such as NordVPN and others to the series of businesses attempting to embrace payments in crypto. Every year, the majority of well-known argument that retailers give for embracing payments in cryptocurrencies is analogous. This is related to the enhancement in the services to be provided to unbanked customers or those who have apprehensions regarding their privacy.
By adopting crypto payments, these institutions get the benefit of a mounted number of sales. The latest payment processing firms minimize the problem of price fluctuation in the case of crypto by allowing rapid settlements to traditional currencies. Interestingly, it was reported in December 2022 that CoinGate CEO “Justas Paulius” disclosed that the rate of crypto payments did not have any effect.
As per Paulius, this trend just witnessed a shift toward stablecoins. Stephen Pair, the CEO of BitPay, disclosed that the customers were less apprehensive regarding the crypto assets’ price. However, considerable attention was given to the transfer charges in the former year. In line with this, the clients prioritized the Litecoin token over Bitcoin in terms of smaller purchases as the transfer charges of LTC were considerably smaller.
Bitcoin’s Usage for Merchant Payments Equals 41%
Customers utilized Litecoin in nearly 27% proportion of merchant transfers. On the other hand, Bitcoin was used by up to 41%. Users likely selected the primary crypto for bigger purchases as it has an additional large network and significant mining power, as per Pair. CoinGate anticipates that the developments made in the Lightning Network of Bitcoin could witness a great and dramatic improvement in the volume and throughput in the next years.