An abstract techno phenomenon for some, an investment opportunity for others, cryptocurrencies have never attracted so much attention and the transaction volumes linked to their use continue to grow.
Founded on principles of transparent transactions and economic freedom, these virtual currencies initially attracted little attention until Bitcoin's sharp rise in value in 2013 and its explosion in 2021.
Critics of cryptos rely on arguments of volatility and difficulty of everyday use to reduce these currencies to mere objects of speculation. However, there is a real and growing consumer demand to be able to pay with cryptocurrencies. To make this possible, companies such as ours are innovating by making it easy to use them in the "real" world.
With this turning point, we can then look forward to a sustained long-term value and stability that is conferred by this integration into our daily lives. Dello is here to make a difference by modernizing the payment solutions industry with integrated crypto payment solutions.
Even for those most accustomed to technological concepts, cryptocurrency can seem somewhat mystical. With 75% of non-crypto owners stating lack of knowledge about cryptocurrencies as the main reason they haven’t purchased it, we want to make it as clear as possible, especially when it comes to how easy it is to use them to pay with Dello solutions.
Simply put, cryptocurrencies are currencies in digital form and there are reportedly over 10,000 different ones, with Bitcoin and Ethereum leading the way. Just like keeping dollars in the bank, one must keep their crypto currencies in a safe place. This is where the concepts of digital wallets and the famous blockchain come into play. An individual with digital assets will be required to create a wallet that will have an identification number affixed to it and will be securely accessible by its owner.
To keep everything transparent, transactions are recorded on a blockchain, a decentralized database that offers a high level of transparency. Indeed, transactions from one wallet to another, which are blocks that are added to a chain, must be validated by "validators". The latter are participants in this network who will be offered a small reward for each validated transaction, which is called the proof of work. It is this incentive, among others, that gave birth to the crypto mining centers that serve only to profit from the validations by doing data mining.
According to figures from 2021, about 94% of adults have heard of cryptocurrencies and of these, 20% are active owners. So, they don't see cryptocurrencies as just an investment, but rather are motivated to be able to use them to make everyday purchases. To put the phenomenon in perspective, again according to figures from 2021, there are more than 45 million adults in the United States who would consider paying with cryptos, demonstrating that this is not a marginal movement since it represents more than 55 billion US dollars in transaction value for this country alone.
In addition to a growing interest in using cryptocurrencies, there are also three major trends among consumers paying with crypto. First, the value of the average purchase paid for with cryptocurrencies is nearly double that made with a credit card. In addition, 51% of customers are more likely to make a purchase from a business that accepts crypto and 40% are new customers.
In addition to the 20% of active owners, another group of about 20% of adult consumers are reportedly curious about cryptos and may be testing their use, but they are less likely to believe that using them is simple. This group could help double the number of cryptocurrency owners willing to use them to pay for everyday purchases.
In light of this opportunity, some major players have decided to open up to crypto payments. One example is Microsoft, which decided to accept Bitcoin as a payment method in the Mircrosoft Store back in 2014. This did not go smoothly, considering that the volatility of this currency led the tech giant to suspend the acceptance of this payment method for some time before reinstating it.
Payment processors have also followed suit in trying to make the use of cryptos easier for customers and merchants. PayPal, for example, has decided to get in on the act by allowing its retail customers who hold crypto in a PayPal wallet to be able to use it to pay for merchant purchases at checkout. These can then receive payments in fiat currency. This method remains restrictive, requiring consumers to keep their eligible currencies within the PayPal network.
In an effort to reach out to Generation Z, which has recently become greatly enriched via the NFT market, eBay may imminently announce that it will accept cryptocurrencies as a payment method. This also demonstrates an adjustment of the market to a younger generation that has digital currencies and is just waiting to use them easily and quickly.
On the SME and merchant side, data on their 2022 payment intentions shows that nearly 25% of those accepting digital payments plan to move to accepting crypto currencies. Once again, there is a perception of barriers to entry and risks associated with this payment method among merchants who are reluctant to make this shift. However, we note that a well executed approach of this kind generally leads to an average return on investment of more than 325% for companies that offer payment in cryptocurrencies.
At the level of banking institutions, there is a growing openness and exposure to cryptocurrencies mainly due to FOMO (fear of missing out). Major cryptocurrencies are now being recognized as credible digital assets by this usually more risk-averse industry. They are adapting to the undeniable demand from investors to have access to this class of assets.
For now, eyes are still on large players setting up crypto-related initiatives, but these often have their own terms and conditions and may require customers to sign up for services or perform intermediate actions to payments. The current bet is that these large-scale programs will result in the activation of a critical mass of crypto consumers and that merchants will follow suit.
Can we transact in cryptocurrencies? Yes. Can we easily transact in cryptocurrencies for all our everyday purchases? It is not a foregone conclusion.
Currently, transactions are usually done from one crypto wallet to another. This has a few issues, including:
A customer who wants to use his crypto to pay for a purchase at a merchant who does not accept these digital currencies will have to use an intermediary mode. He could have either a prepaid credit or debit card that can be reloaded with cryptos, or he could be even more patient and order gift cards from certain companies via specialized platforms.
For certain types of payments, a person can also use a specialized service that will collect the payment in cryptocurrency and then convert it and pay the amount to the recipient. However, it can be agreed that the spontaneity of the transaction is lost, and the method is mostly reserved for more substantial payments and purchases.
Currently, people motivated to spend their crypto do so either by transacting directly with crypto-accepting parties or by going through an obstacle course to use the value contained in these digital currencies for everyday use. This demonstrates exactly the crux of the problem, which is that there are too many barriers to use that discourage a huge mass of people wanting to acquire and use crypto from doing so.
Are you a business wanting to accept payments in cryptocurrencies? You certainly don't want to have to take on volatility risks and have to set up a holding structure for crypto until you can convert it to fiat currency. And we're not even talking about the accounting and tax implications here yet.
We also know that customers want to be able to transact directly from their wallets, without having intermediate steps to convert or move their cryptocurrencies.
To address these realities, both on the merchant and consumer side, we have developed solutions that directly target the barriers to using crypto on a daily basis.
Specifically, Dello is positioned at the center of the transaction process as a fully integrated payment solution for merchants. Our ambition is nothing less than to spearhead the industry of payment solutions that accept cryptocurrencies. Here's how we plan to get there:
Our solutions address one of the major risks for merchants: the volatility of digital currencies. Our systems guarantee the rate at the time of the transaction, so you charge $100 and receive $100, less a small processing fee.
With the demand for cryptocurrency payments on the rise, a business looking to expand its payment offering can use Dello's services and enjoy a service with no subscription or hidden fees. Unlike credit card transaction fees, which are relatively high, crypto transaction fees at Dello start at a rate as low as 0.1%.
Dello merchants can collect cryptocurrency payments directly and quickly with zero risk of volatility.
If a customer wants to make a payment in crypto, we have the solution to process it, no matter the location, regardless of the merchant's setup. Dello offers solutions that integrate and adapt to all merchant realities, without causing disruption while giving them access to a new customer base motivated to pay in crypto.
Our partnerships with major players in the payment processing industry allow us to be one of the first global players to offer a fully integrated service on payment terminals. This huge advantage allows Dello merchants to have one terminal that accepts debit, credit and now crypto.
This ease of collecting any type of payment is a major breakthrough in the world of cryptocurrency payments. Indeed, it opens the doors to collecting everyday payments made in crypto at all types of merchants, regardless of the value or type of product. No effort is required from customers other than scanning a QR code.
A real scourge, especially during high sales periods like the holidays or Thanksgiving, chargeback fraud costs retailers billions each year with an estimated 615 million such events in 2021.
In a chargeback fraud, fraudsters will claim a refund from the issuer of a credit card used for a purchase, claiming that they did not receive the goods and services ordered. The credit card company will then take a position in favor of the "fraudulent customer" and issue a refund, all at the expense of the merchant who is ultimately the victim of this fraud.
A transaction made in cryptocurrency protects the merchant from this kind of manipulation. The transaction made from the customer's wallet is irreversible. This means that the customer or the transaction processing system, in our case Dello, cannot make a refund without the involvement of the merchant who received the funds. This protects businesses from frauds that would average around $200.
Also, contrary to popular belief about the crypto industry, payment processors such as Dello must undergo a rigorous certification exercise by government authorities to be legitimately recognized as an MSB (Money Services Business). This is a license that bestows confidence and trust in dealing with illegal financial practices.
To make crypto payments simple and fast for merchants and customers, we have developed point-of-sale (POS) solutions that integrate with brick-and-mortar, online and over-the-counter (OTC) transactions.
Cash, credit, debit, and now crypto, all from the same application. Dello offers merchants the ability to use an integrated POS terminal that accepts both fiat currency payments, and crypto payments. This terminal can even be compatible with current payment solutions.
Our Crypto Tablet allows you to easily accept crypto payments and perfectly complements the solutions of merchants who want to test this payment method. Order your tablet directly online, sign up to become a Dello merchant and quickly gain access to a new generation of customers.
Our e-commerce widget integrates with your customer journey and allows you to complete sales by accepting cryptocurrency payments. It takes the form of a simple button and allows you to manage the payment process, including sending a payment confirmation.
Thanks to our expertise and collaboration with Premicesoft, a leading software developer, our Dello Bridge solution can connect to any compatible POS solution in just a few minutes.
Dello is also authorized to offer the over the counter (OTC) payment service between parties. With this service, buyers for major goods can, for example, acquire a valuable asset by paying in crypto. The seller is then paid the amount in current currency.
With the arrival of Dello on the market, processing cryptocurrency transactions has never been easier. Merchants now have access to a risk-free and fully tailored offering to make the leap into the world of crypto.
Getting started with Dello is quick and easy, our online form takes just a few minutes to complete. Our sales team will then get in touch with you to evaluate the best solution for your needs.