Crypto unlocks a borderless world and merchants hold the key to the future

Opinion by: Anil Öncü, CEO of Bitpace.

Over the last decade, digital payments have grown from a niche convenience to global commerce’s backbone. Instant transfers and contactless payments are now the norm, reflecting a globalized demand for speed, efficiency and accessibility.

With giants like Visa constantly pushing new solutions, digital wallets are predicted to account for more than 50% of e-commerce transactions by next year. The idea that traditional finance and cryptocurrency oppose each other is fading. Hybrid solutions that serve global financial inclusivity are primed to take root.

A parallel is emerging between two prominent trends at the core of this shift. With the global blockchain in the retail market set to hit $26 billion by 2033, the progression of cross-border transactions and merchant crypto adoption is growing inseparable.

More efficient cross-border solutions are in high demand, with the sector predicted to reach an estimated value of $56 trillion by 2030. Simultaneously, the rate of crypto adoption among global merchants is steadily increasing. Around 30,000 currently accept Bitcoin (BTC) payments. This number will rise, as will the adoption rates of other trusted cryptocurrencies.

As more businesses accept crypto, its utility will be enhanced. Adoption will help speed up and strengthen the much-needed reform to a traditional banking infrastructure, which was accountable for $3.8 billion of failed cross-border transactions in 2023.

With consumers ever thirsty for quicker, cheaper, more accessible payment options, a ripple effect of mutual reinforcement is sculpting a new landscape for global commerce.

Crypto lowers barriers

The reason merchants are finally beginning to accept and introduce crypto isn’t just to stay apace and provide novelty to customers; crypto removes longstanding obstacles such as high transaction fees and slow settlement times.

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In particular, small and medium-sized enterprises (SMEs) benefit from eliminating intermediaries, which can drastically transform their trade. What would have once been an unviable cross-border operation can become a significant and fruitful arm of the business. With crypto, SMEs can reach an international customer base without sacrificing profit margins.

The result? A virtuous cycle where lower costs attract more customers, which in turn incentivizes greater adoption of crypto payments. Recent data shows that 93% of global merchants who accept cryptocurrency report positive effects on customer engagement. It’s becoming a no–brainer. 

The utility loop

Merchants adopting crypto not only help solve existing challenges in the payment space but also amplify the utility of digital currencies themselves. The more merchants accept cryptocurrencies, the more practical these assets become for everyday use, especially in cross-border commerce.

For example, a buyer in Mexico who uses crypto for remittances can seamlessly purchase products from a merchant in Europe without converting currencies. That creates a consistent, reliable ecosystem for both merchants and consumers. As the cycle repeats, crypto’s global utility grows, making it an increasingly viable payment option.

Remittances as a gateway

Out of the $190.1 trillion worth of cross-border transactions made in 2023, an estimated $656 billion were made of remittances. This figure will primarily be of workers returning money to their families in emerging markets. That year, cryptocurrencies accounted for 9% of the $5.4 billion in remittances sent to Venezuela alone.

Unsurprisingly, crypto adoption rates in emerging markets, where over 2 billion people are estimated to be underserved by traditional financial services, tend to outpace those in developed economies. Exorbitant fees and heavy delays associated with conventional remittance services are fueling this switch to crypto, which helps to avoid these pain points. 

It’s becoming more apparent to consumers and businesses that crypto can be used as a hedge against local currency volatility. Many local currencies, such as the Venezuelan bolívar and the Zimbabwe gold dollar, can lose value overnight. Many cryptocurrencies — particularly stablecoins pegged to the United States dollar — are starting to be seen as reliable alternatives for international trade. Crypto is becoming a lifeline for merchants, who use crypto for cross-border transactions to protect their revenue from currency devaluation.

The increasing familiarity with crypto spills over into commerce. As recipients grow more comfortable holding and spending cryptocurrencies, local merchants in these markets continue to accept crypto payments. The result is a seamless ecosystem that serves both remittance needs and retail transactions. 

A borderless future

The continued growth of cross-border commerce exposes the inefficiencies in traditional banking systems. They’re becoming harder to ignore. As globalized markets encourage merchants to expand into international trade, the need to avoid the friction of conventional payment methods is more pronounced. Crypto is the most compelling alternative on offer.

The trajectories of crypto adoption and cross-border growth are inextricably linked. The pain points of global trade are unsustainable and must be solved. Crypto as a payment method will continue to soar in value and utility, simultaneously driving broader adoption. Over time, this transformative feedback loop will redefine global commerce.

For merchants, the time to embrace this change is now. Crypto adoption isn’t just about staying competitive; it’s about unlocking the next frontier of growth. A borderless future powered by digital currencies is no longer a far-off dream — it’s happening today. Those who seize the opportunity will be the ones to lead in tomorrow’s global economy.

Opinion by: Anil Öncü, CEO of Bitpace.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.