Blockchain—once considered an emerging technology—is now essential for enterprises and financial institutions keen to gain a competitive advantage. As crypto solutions mature across various use cases—payments, customer engagement and liquidity, among others—businesses are embracing the technology to improve operations, increase agility, lower costs, and better serve their customers.
For example, adopting crypto-enabled payments solutions can be an advantageous move for businesses across industries as it enables them to accept payments in crypto and streamlines global capital flows. Additionally, treasury functions stand to gain from the inherent transparency and validity of the blockchain, bringing greater insight into internal capital flows. And loyalty and rewards programs provide a low threshold for new users, helping to broaden customer reach and deepen engagement.
There are several options for businesses to consider when integrating crypto solutions across these use cases: from measuring the value of crypto-enabled transactions to broadening use throughout business operations, and, ultimately, finding the right partner to move forward. For many future-thinking enterprises, now is the time to position strategically and take these important next steps in the evolution of finance.
Accepting Crypto Payments
Enterprises stand to gain from preparing their business to accept crypto payments for both ecommerce and in-store purchases.
In a 2022 survey by Deloitte, nearly 75% of retailers reported their plans to accept crypto payments within the next 2 years, and 32% of small business owners surveyed in the US currently accept crypto as payment. An additional study showed 40% of customers that pay with crypto are new to the merchant, and purchase amounts are twice that of credit card purchases.
Further, crypto-enabled payments can prove beneficial by reducing transaction costs— settling in mere seconds compared to legacy systems which can often take days to settle. The growth in stablecoins—a digital asset whose value is pegged to a fiat currency—is set to further accelerate the adoption of crypto payments. Stablecoins serve as a lower cost alternative to traditional payment methods such as credit cards, and due to their fast settlement time are a compelling payment option for merchants and small businesses who are often kept waiting days for credit card transactions to process.
Enhance Treasury Efficiency
Enterprises have an opportunity to enhance corporate treasury by streamlining payment processes, improving liquidity management, and gaining exposure to yield-generation through the adoption of a stablecoin. Stablecoins were designed to reduce volatility by serving as a hedge against price fluctuations. They maintain both the benefits provided by blockchain and the familiarity of fiat currencies.
In processing and accepting stablecoins, businesses can lower costs and increase transaction speed compared to traditional rails. Further, stablecoin transactions—even internationally—can be viewed in real-time, providing more transparent insight into internal capital flows. Treasury managers are also able to earn yield on idle capital by accessing new crypto lending markets and their high interest rates.
At the start of 2021, the Office of the Comptroller of the Currency (OCC) issued guidance on US banks using stablecoins as a payments system on public blockchains. This development paves the way for the potential of accelerated adoption of stablecoins in business operations as well as the US financial system as a whole.
Drive Loyalty Through Crypto Rewards
Increased interest in and adoption of cryptocurrency is fertile ground for organizations to drive deeper engagement with customers, both transactional and experiential. Rewards can serve as low-friction gateways to digital assets for new users. A recent study by Visa found that 57% of consumers expressed a strong interest in entering the crypto ecosystem through rewards.
Leveraging reward programs through crypto also stands to extend the lifetime value of customers, offering a user-friendly program and incentivizing brand loyalty. Blockchain can offer instant redemption and unite the currently disjointed world of loyalty rewards programs through one digital wallet. This provides customers with one simple platform, removing the need to track multiple loyalty programs, redemption guidelines, and limitations.
Integrating Crypto Technology
Many enterprises that don’t have the resources to integrate crypto technology in-house can utilize a third party plug-and-play solution, allowing them to reap the benefits of crypto without the headaches. In partnering with a third party such as Ripple Liquidity Hub, organizations can seamlessly bridge crypto and fiat systems, gain access to extensive payout rails, and a rich set of liquidity venues sourced at optimized pricing. This strategy is attractive to businesses as it's the easiest and fastest entry point to reach new customers and streamline capital flows. These benefits, coupled with Ripple’s ample knowledge of crypto and deep track record in payments, makes Ripple a well-suited partner for businesses looking to incorporate crypto solutions at any stage.
Crypto solutions are gaining traction, and the underlying blockchain technology that powers these solutions presents an opportunity to transform the way business gets done. By pioneering this shift, enterprises can reduce transaction costs, expand their markets, and appeal to consumer preferences to stand out against global competition.
Don’t get left behind. Learn how Liquidity Hub can streamline and provide a competitive advantage for your business.
*The availability of Ripple’s products and services and their respective features varies by jurisdiction.
