In order to offer cryptocurrency payments globally, you need to understand that it is a quite novel form of payment and only certain things are going to work.
Based on the research and statistics I’ve recently done, there are only 3 categories of markets where you should go in order to be successful in your crypto payments approach.
The markets with a high inflation rate
Earlier I believed that the biggest markets where crypto payments will have high demand are well-established countries with strong economies. However, that’s not the case at all.
US and European residents have enough financial instruments they can use and trust: cash and plastic. Those are accepted anywhere and there’s no need for using something else just because there’s easy access to such services.
On the other hand, if you take countries like Venezuela or Zimbabwe, you quickly realize that you need to carry a bag of worthless paper with you in order to pay for a meal. That’s not cool. It is scary.
I recently had a talk with a guy from Caracas who told me that the inflation rate in Venezuela is a staggering 25,000%. No wonder people from that region love crypto so much. In comparison to their local currency, Bitcoin is not as volatile.
Thus, the first strategy will be to rate countries from the highest inflation rate, go there and crush it. I’m still figuring out the safest way to work with those merchants but eventually, I’ll figure it out.
The markets where Bitcoin is regulated properly
So far there’s only one country where Bitcoin equals money, Japan. A year ago one of the biggest tech companies Bic Camera started to accept Bitcoin. About a week ago we finally got the results from this timeframe.
Less than 1% in total is using Bitcoin for daily payments, which is okay, I didn’t expect that number to be higher. If you think about it, 1% from $7,200,000,000 is a solid $72,000,000. Not that bad for brick and mortar business.
Depending on the region you pick, it can take a lot of mental work to get familiar with their culture and finding a trustworthy local to work with.
Specific online markets
Bitpay, the biggest online payment processor for Bitcoin stated has a decent growth of volume in 2017. The average monthly payments have grown to $110M from all of the merchants combined, which creates profits of over $1.1M a month. That’s quite impressive but there’s always some space to grow.
I personally bet on the travel industry because most of the people in crypto are on the road 50-80% of the year. That means that booking systems for hotels, airlines will be the best choice to start with. However, I see a big demand for online delivery networks, taxis, car and house rentals, bars, and restaurants, gas stations, gaming platforms, car dealerships.
This niche is extremely challenging for me in terms of being introduced to such big companies but that doesn’t stop me.
In any case, I’m probably going to pick one of the markets because you can’t reach everything at the same time. Which one do you suggest the most?