Cryptoprocessing by CoinsPaid reaches new heights: CEO on the next milestones for the crypto market
Payments made with cryptocurrencies are CoinsPaid, one of the world’s largest crypto payment providers, has reported a record 400 percent increase in transaction volume. This comes at the same time as a hint from Stripe that the company may once again support Bitcoin and PayPal.
Even though Bitcoin’s price has been dropping, there are no signs that crypto payments will slow down.
After Bitcoin reached a new all-time high price of $69k, the cryptocurrency markets were extremely volatile during the months of October and November 2021. This resulted in a general decline of 20% across the board. As a result, some investors began to wonder whether the most recent bull run had come to an end and whether or not the next bear market was just around the corner.
However, regardless of the state of the market, there is one sector in which growth is accelerating at an ever-increasing rate: crypto payments. Companies that process cryptocurrency transactions, such as CoinsPaid, are reporting record increases in volume, and a number of multinational corporations have recently announced new plans to support cryptocurrency.
Notably, the company Stripe, which has a market cap of $95 billion, disclosed that it is considering restarting its acceptance of Bitcoin after having discontinued its support for BTC in 2018. The fact that Stripe has appointed Matt Huang, co-founder of the Paradigm blockchain venture fund, to its board of directors is further evidence that the payment processing giant is investigating new crypto-related business opportunities.
According to a new report published by Blockdata, the Bitcoin Network itself has processed 62 percent more in transaction volume than PayPal so far this year. Specifically, the Bitcoin Network has processed $489 billion per quarter while PayPal has only processed $302 billion.
Up 400% in 2021: what CoinsPaid numbers say about the crypto payment market
CoinsPaid, a single service provider, is responsible for more than 7 percent of all on-chain Bitcoin transactions. This statistic is astounding. Its Cryptoprocessing gateway has been making headlines in 2021 as a result of the more than doubled client portfolio and the skyrocketing 400 percent increase in the volume of transactions processed. This suggests that the cryptocurrency payments market as a whole has the potential to overtake other sectors of the industry in terms of growth rate; this is an encouraging sign that we are getting closer to widespread adoption.
CoinsPaid CEO: ‘The market can’t go up only, but the crypto payment sector can’
It is extremely rare for a payment company to increase their volume by a factor of five in the span of a single year. Therefore, even the team behind CoinsPaid was taken aback when the number of merchants joining the gateway began to rapidly balloon in the beginning of 2021. In only ten months, the number of businesses utilising the Cryptoprocessing gateway increased to over 800, representing a nearly 200 percent increase from its previous level of just over 300.
The number of transactions that were successfully completed reached a new high of 1.26 million in October, representing a 313 percent increase month-on-month compared to January’s total. This is an impressive growth rate. 7.8 million transactions were handled by CoinsPaid in 2021, out of a total of 13 million handled by the company since 2017.
In terms of the volume of transactions, October 2021 set a new monthly high of 712 million euros, which is equivalent to $824 million. When compared to January, this number is 400 times higher. CoinsPaid handled a total of $4.7 billion worth of cryptocurrency transactions in 2018, accounting for a staggering 67% of the $7 billion worth of crypto that passed through the Cryptoprocessing gateway since it was first introduced.
In the end, CoinsPaid made history by becoming the first cryptocurrency payment provider to successfully complete two separate security audits (by the famed Kaspersky Labs and by 10Guards). The industry took note of the company’s impeccable security track record as well as its triple-digit growth, and as a result, the company was awarded the Payment Provider of the Year award at the AIBC Summit held in Dubai.
According to the chief executive officer of CoinsPaid, “the market cannot only go up, but the crypto payment sector can.”
We reached out to the Chief Executive Officer of CoinsPaid, Max Krupyshev, to get his perspective on the future of crypto payments and the market as a whole.
Why, in your opinion, do you think such a large number of businesses are starting to accept cryptocurrency all of a sudden, both with the assistance of CoinsPaid and other providers?
I’d point the finger at three things: increasing retail adoption, the narrative in the media, and gains for the business. First, the number of people who hold cryptocurrencies is expected to double to 300 million in the first half of 2021. If they have made significant gains during the bull run, many of these people will want to spend their cryptocurrencies. When you add to this the difficulty that some businesses have accepting credit card payments, you end up with a lot of people looking for ways to pay with bitcoin.
The second factor is that news about crypto payments, such as those offered by PayPal, MasterCard, FIS, AMC, and now Stripe, has gotten merchants interested in experimenting with these forms of payment. And last but not least, they came to the realisation that by accepting Bitcoin rather than cards, they could save a significant amount of money. In point of fact, you cut your payment costs by up to 80 percent, and in addition to that, there are neither chargebacks nor rolling reserves. The bottom line is that cryptocurrency is beneficial to your profit margin.
What advice would you give to a company owner who is interested in experimenting with cryptocurrency payments?
Begin by looking at your options. There are dozens of different processors available, and they all function in slightly different ways. For instance, CoinsPaid allows you to make settlements in a variety of fiat currencies, whereas many other platforms do not offer any form of fiat currency settlements. We also have a very clear and concise fee structure, in contrast to some of our competitors who may advertise a lower base fee but actually make their money through hidden exchange rate gaps. Additionally, we make it possible for users to make payments in BTC and ETH in a manner that is very close to instant, which eliminates the need for them to wait for on-chain confirmations.
Also, keep in mind that merely adding a button that allows users to pay with Bitcoin does not mean that the work has been completed. You are going to need to do some marketing if you want to bring in crypto traffic and if you want to convince your current users to switch to crypto. However, the results are well worth it in every way.
What are your predictions for the future of the cryptocurrency market? Was the all-time high for Bitcoin $69 000?
I don’t think it could have been any better; I think we’ll get to see some real fireworks in the next few months. However, I anticipate that the first half of 2022 will be challenging, and as a result, you should exercise extreme caution once you notice euphoria in the market.
Since 2013, I’ve been working in this sector, and I was one of the early blockchain pioneers in Eastern Europe. I was instrumental in establishing organisations such as Bitcoin Foundation Ukraine and Satoshi Square Kiev. Over the course of these eight years, I’ve witnessed a wide variety of cycles, crashes, FOMO runs, and everything else. And the thing that I like best about crypto payments as a niche is that it can continue growing in any conditions, even in a bear market, and this is something that is very appealing to me. It’s the only real ‘up only’ part of the industry, if you will, if you look at it that way.
Cryptocurrency payments might not appear to be as exciting as speculative leveraged trading, but they are ultimately the most direct route to widespread adoption of cryptocurrencies. Because of service providers such as CoinsPaid, hundreds of retailers have realised the benefits of accepting cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and others; in 2022, it is likely that thousands more will follow suit and join the trend.