Noncard crypto payments are increasingly available to consumers and may also be attractive to merchants. The latter must absorb the costs of accepting card payments, creating historical tension with payment card networks that has escalated over the past year. Circumventing card networks and instead going through crypto exchanges and wallets can reduce costs for merchants and help consumers avoid any surcharges that merchants may apply. Gemini Pay, for example, does not charge any transaction fees.
These crypto payments also bring merchants enhanced fraud prevention. Cryptos cannot be altered or reversed, allowing funds to instantly settle and transfer with trust, which reduces chargeback risk for merchants.
As card fee frustrations rise and merchants search for alternatives, noncard crypto payments are providing competition that could threaten card networks. Crypto’s lower fees can help the payment method gain traction with merchants. Retail payment incumbents are already looking to integrate crypto payments to meet potential merchant demand:
Heavy hitters including Amazon, Walmart, and Uber are also all mulling crypto acceptance, which could aid usage.
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