TL; DR
Full story
We read Coinbase’s “State of Crypto: The Fortune 500 Moving Onchainreport so you don’t have to!
The headline stats:
-
Fortune 100 companies’ reported Web3 initiatives increased 39% year-over-year (reaching an all-time high in Q1 2024)
-
56% of the Fortune 500 say their companies are working on onchain projects (including consumer-facing payments applications)
-
Onchain stablecoin settlement volumes hit record highs in Q1 2024 (with annual settlement volumes reaching $10 trillion by 2023)
“Okay, but why is this happening?”
Short-term:
There is a lot of new wealth in crypto, with very few ways for holders to spend it efficiently.
By adding easy-to-use crypto payment rails to their tech stack, businesses can convert more people into paying customers.
We have seen that this works wonders web2:
-
Amazon’s one-click payment method
-
Afterpay’s buy-now-pay-later
-
And tap-to-pay from Visa/Mastercard
All of these technologies delivered dramatic improvements in customer conversion rates simply by making the checkout process smoother.
In the long-term:
Crypto payments are CHEAP!
Brick-and-mortar retailers typically have average profit margins between 0.5 and 4.5% – that’s razor thin.
Visa, Mastercard and American Express charge merchants anywhere from 1.29% – 3.29% (+0.05c – 0.10c) in transaction fees.
A $100 purchase with the cheapest possible credit card option would cost merchants $1.34 in transaction fees.
Low-cost crypto networks like Solana charge a flat fee of ~$0.00025 per transaction, making crypto payments 5360x cheaper on a $100 purchase.
The result: a potential saving of billions per year on transaction costs.
Okay, now you know!