While many global companies are announcing accepting crypto payments, many are still cautious, especially with the latest crypto market crash this year. In the UAE too, some crypto investors are backing while others are still hanging and waiting for another rise-up, which will increase their profits.
Who are the biggest winners in the world of crypto payments? What are its benefits, and how the UAE market is accepting it?
According to Atul Hegde, Entrepreneur, NFT & digital marketing veteran, the high-end luxurious sectors are the biggest winners in crypto payments.
“All luxurious businesses will benefit highly from crypto payments. As we may notice, these businesses are trying to enter this world and are setting the needed procedures for the payments collection transition,” he said in an interview with TRENDS.
“For example, we may see that most luxurious vacations are purchased through crypto, same goes for luxury real estate and many more retail services.”
Crypto Payments in the UAE
The UAE’s government is trying to make the country crypto-friendly, especially in Dubai. However, there are many challenges, mainly related to the private sector.
Many brands are cautiously watching the movements of cryptocurrencies, primarily after the 2022 market crash.
However, Atul thinks this is a global issue and not related only to the UAE alone. “The biggest challenge is ‘acceptance’, and this is a global matter. A confident consumer base compatible with dealing in crypto is needed to push such payments,” he said.
While the UAE is one of the few countries with crypto laws and other regulations supporting metaverse systems, the issue is about the mass accepting crypto payments and trusting its impact on businesses and consumers.
Positive crypto payments
As opposed to traditional currencies such as dollars or euros, which require a third party like a bank or credit union to process transactions, cryptocurrencies can be exchanged directly between buyers and sellers online.
Cryptocurrencies level the playing field economically and facilitate risk-free trade. Let’s check some of the crypto payments’ benefits:
- Fewer fees: Cryptocurrency transactions have much lower costs than those linked with traditional payment methods like debit and credit cards. As a result, making a purchase or sale using a cryptocurrency may often be costless.
- Global use: The global nature of the cryptocurrency market means that its use is not restricted by location. Trading overseas with traditional currency also sometimes involves substantial transaction costs. By using a cryptocurrency, you may make international transactions rapidly and cheaply. All you need is the internet and mobile.
- Safer mobile payments: Mobile devices are being used more frequently to make purchases. Yet, crypto payments are safer because of their decentralized structure. With crypto, mobile payments will be faster, safer, and easier for users.
With the widespread adoption of cryptocurrency among key enterprise giants such as Microsoft, merchants are likely at the forefront of digital payment acceptance.
At the same time, many experts believe cryptocurrencies can act as a hedge against inflation, thus encouraging businesses and users to become more crypto-friendly.
Yet, unlike gold, crypto prices decline in response to financial and political uncertainty, rejecting the safe-haven quality.