Why are large companies switching to cryptocurrency payments?

Why are large companies switching to cryptocurrency payments?

In the past three years, more and more global brands have started accepting cryptocurrency payments — Shopify, Gucci, Microsoft, Tesla… This is happening not only in the e-commerce sector but also in finance, tourism, entertainment, gaming, and other industries. Moreover, the trend is also affecting CIS countries, where several large companies are implementing cryptocurrency payment solutions.

The adoption of laws regulating the circulation of digital assets, improvement of cryptocurrency processing services, and growing trust in such payment solutions among users all led to the point where payment in cryptocurrency has become legal and accessible in many countries.

Many marketers note that companies allowing customers to pay in Bitcoins and stablecoins gain a competitive advantage. They attract a new audience — tech-savvy and often more affluent. Moreover, a well-executed integration of cryptocurrency processing helps businesses minimize the risks associated with exchange rate volatility. Let's look at real examples. These cases clearly show: cryptocurrency has ceased to be a niche technology and is becoming the standard for business.

Dallas Mavericks: purchasing merchandise with Dogecoin

One of the most famous cases in the sports industry involves the NBA team Dallas Mavericks, owned by the well-known entrepreneur Mark Cuban. In March 2021, he announced that fans could now purchase tickets and team merchandise with Dogecoin. Many regarded this as a bold step since Dogecoin had long been considered a meme coin. However, demand quickly justified itself.

A month after the start of sales, Mark Cuban revealed that revenue from merchandise and ticket sales in Dogecoin exceeded 122,000 DOGE, approximately $16,000 at the time. The amounts, by the standards of large businesses, are not astronomical, but they are significant: the club received a powerful PR effect, gained the attention of crypto enthusiasts and the press, and most importantly — demonstrated the real possibility for a sports organization to adopt cryptocurrency payments. Dallas Mavericks positions itself as a tech-savvy club, and such initiatives enhance its reputation in the eyes of fans. Additionally, calculations through third-party cryptocurrency processing solve the problem of conversion and volatility, minimizing risks for the business.

AMC Theatres: 14% of online payments are already made in cryptocurrency

The largest cinema chain in the USA, AMC Theatres, integrated cryptocurrency acceptance in the fall of 2021. Visitors received the ability to purchase tickets and popcorn using Bitcoin, Ethereum, and even meme coins like Dogecoin and Shiba Inu through the AMC app. According to AMC CEO Adam Aron, the innovation quickly resonated with the audience: by early 2022, cryptocurrency accounted for 14% of all online transactions at AMC. Such figures were achieved in just a few months of work on the implementation of cryptocurrency. The introduction of Bitcoin allowed AMC to attract a new audience of young, tech-savvy moviegoers and increase online ticket sales. Additionally, the company reaped PR benefits and a reputation for being the first in its industry to start accepting digital currencies. AMC management notes that cryptocurrency payments expanded options for customers without any complications for business processes, as the conversion of cryptocurrencies to fiat happens via a third-party provider and is much faster than banks.

Gucci and luxury brands: sales growth due to crypto buyers

Gucci – one of the most famous fashion houses – began accepting cryptocurrency in retail stores in the USA in 2022. Gucci customers can pay for clothing and accessories with Bitcoins, Ethereum, and other coins. Other luxury brands have followed Gucci: for example, Tag Heuer watches and Cartier jewelry can now also be purchased with cryptocurrency. Why do premium brands need crypto payments?

The issue lies within the profile of their clients. According to data from the payment service BitPay, in 2021, the volume of sales of luxury goods for cryptocurrency increased from 9% to 31% of all transactions. In other words, more and more wealthy buyers prefer to pay specifically with cryptocurrency. The average check when paying with Bitcoins is often higher than with regular transactions, which increases revenue. Gucci notes that offering a new payment option attracts young customers and strengthens the brand's image as modern and innovative. The absence of intermediaries when accepting cryptocurrency reduces acquiring fees, positively impacting the business's margins.

Travala: the success of cryptocurrency payments in the tourism business

The online hotel and airline booking service Travala has demonstrated the results that can be achieved by betting on cryptocurrency payments. The platform was originally created with a focus on the crypto audience and now offers payment in more than 50 different cryptocurrencies: from Bitcoin to its own booking tokens. In 2022, Travala integrated offers from Expedia and Booking.com, opening the opportunity to book more than 2 million hotels worldwide using cryptocurrency.

This led to explosive growth in metrics: the volume of bookings on Travala in the first half of 2022 increased by 500% compared to the previous year, with up to 70% of orders being paid for with cryptocurrency. The company announced a record monthly revenue, proving the effectiveness of the "Travel + Crypto" model. Cryptocurrency payments allowed Travala to reach a global clientele without tying to banks and traditional payments, reducing transaction costs, and attracting a loyal community of users.

S7 Airlines: tickets on the blockchain and payments in 20 seconds

The Russian airline S7 Airlines became a pioneer in using blockchain for airline ticket payments. Even before the legislative approval of direct cryptocurrency payments in the Russian Federation, S7, together with Alfa-Bank, launched a platform based on Ethereum for settlements with agencies. The essence is that tickets are paid through a smart contract linked to a bank account, and transaction data is recorded on the blockchain. This radically increased the speed and efficiency of settlements. While previously it took several days for fund transfers from agencies to the airline, now the settlement for a sold ticket occurs within 20 seconds.

S7 reported that in just one month, tickets worth more than ₽1 billion (about $15 million) were sold through the new system. Through blockchain implementation, the company reduced operational costs and freed up working capital, as payments for sold tickets now arrive almost instantly. This case demonstrates the advantages of cryptocurrency technologies for the payment infrastructure of a large company.

Retail in Ukraine: payment for equipment and in pharmacies using cryptocurrency

In CIS countries, large retail businesses are also experimenting with accepting digital money. In Ukraine, after the legalization of cryptocurrencies in 2022, several chains began accepting payments in crypto format. Large electronics stores Techno Їzh and Stylus launched payment in Bitcoins and Ethereum both online and at points of sale. Customers now have access to over 130 different cryptocurrencies for purchasing gadgets and equipment.

Moreover, in 2023, one of the largest pharmacy chains in the country, ANC, announced that more than 100 pharmacies now accept cryptocurrency. The impact on the business has been unique: for instance, in the first weeks after launching crypto payments, internet traffic to the websites of these retailers increased by double digits, and a number of customers made large purchases, paying with stablecoins for amounts exceeding 100,000 hryvnias in a single receipt. For Ukrainian retail, cryptocurrency payments opened access to a new audience — IT specialists, investors, and foreign customers who prefer to pay using crypto wallets. Moreover, the conversion to hryvnias occurs automatically, so businesses do not suffer from exchange rate volatility.

Conclusion

Real examples show that large companies are switching to cryptocurrency payments not out of fashion, but because it is beneficial. Let's analyze why:

• This attracts new customers: companies gain an audience of crypto enthusiasts willing to spend more on average.

• Increased revenue and average check — cryptocurrency holders often make larger purchases, and the very fact of supporting Bitcoin enhances loyalty and interest in the brand.

• Operational efficiency: transactions in the blockchain occur almost instantly and with reduced fees, without intermediaries and chargebacks, saving time and money for the business.

• Image advantages — the company is perceived as innovative and keeping up with the times.

Yes, the share of cryptocurrency in overall sales is still relatively small, and implementation requires thorough work. For instance, using crypto processors for automatic conversion to fiat. However, the trend of the last three years is unequivocal: from the USA to the CIS, more large players are ready to offer their customers a new convenient payment method.