Will cryptocurrency be a new payment method in Europe, like Visa / Mastercard?
Are you planning to expand your business further in Europe? Are you aware of the cryptocurrency acceptance in Europe?
Just as giants like Visa and Mastercard revolutionized the way we pay, the acceptance of cryptocurrencies as a payment method is gaining momentum across Europe.
In this blog, we will explore the current state and future of cryptocurrency as a payment method in Europe to give some direction for your business.
Acceptance of cryptocurrency in Europe
The acceptance of cryptocurrency as a payment method in Europe varies by country and region. But overall, it is gaining popularity. The European Union has taken a proactive approach to regulating cryptocurrency, recognizing it as a form of payment and investment.
In 2018, the European Parliament passed the Fifth Anti-Money Laundering Directive (5AMLD), which regulates cryptocurrency exchanges and custodian wallet providers in order to prevent money laundering and terrorist financing. This regulation has increased the legitimacy of cryptocurrency and provided a framework for its acceptance as a payment method in Europe.
In April 2023, the European Parliament approved the first EU rules for tracking the security of crypto-assets as well as the EU market rules for crypto-assets.
Attitudes towards cryptocurrency investment in different EU countries and regions show the popularity of cryptocurrency in EU countries.
According to the data from the European Commission’s Eurobarometer, In 2022, these five countries have the highest percentage of their citizens investing in cryptocurrencies: Slovenia, Croatia, Luxembourg, Bulgaria and Cyprus, with 18%, 16%, 14%,13% and 13%.
Many European countries have embraced cryptocurrency as a payment method, with some businesses accepting it as a legitimate form of payment alongside traditional payment methods such as credit cards, debit cards, and bank transfers.
For example, in the fast food industry, people can use Bitcoin and USDT to pay at McDonald's in Lugano, Switzerland.
In addition to traditional brick-and-mortar businesses, online merchants in Europe are also starting to accept cryptocurrency as payment.
For example, in December 2021, Croatia's largest supermarket chain accepts 9 cryptocurrencies for payment in its online store, including Bitcoin, Ethereum, Bitcoin Cash, EOS, DAI, Ripple(XRP), Stellar(XLM),Tether(USDT) and USD Coin(USDC).
Another example is in the UK, in September 2021, Paypal announced on Twitter that all eligible users can use Paypal to trade with cryptocurrencies in the UK, including BTC, BCH, ETH and LTC.
Benefits of accepting cryptocurrency in your store
The benefits of accepting cryptocurrency as a payment method are numerous.
Cryptocurrency transactions are generally faster and cheaper than traditional payment methods, as they do not require intermediaries such as banks or credit card companies.
Additionally, cryptocurrency transactions are highly secure, as they are protected by cryptography and cannot be easily counterfeited or double-spent.
It is true that the lack of widespread adoption of cryptocurrency as a payment method may make it difficult for businesses to justify the expense of implementing cryptocurrency payment systems.
However, in the future, AI will be integrated with blockchain to jointly promote the development of WEB3. AI can guide users through transactions in the blockchain, answering questions and providing assistance in real time. For example, the cryptocurrency exchange Binance recently launched an AI chatbot called Sensei, which can provide users with customized tutorials and create a personalized cryptocurrency trading learning experience.
Bottom line:
Overall, while the acceptance of cryptocurrency as a payment method in Europe is still in its early stages, it is a growing trend that is expected to continue. As more businesses and consumers become familiar with cryptocurrency and its benefits, it is likely that the acceptance of cryptocurrency as a payment method will become more widespread across Europe and beyond. Silkpay is going to launch this project and help merchants accept this payment method soon.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.
Resources:
https://www.weforum.org/agenda/2023/03/charted-crypto-popularity-across-the-eu/
https://www.btcfans.com/en-us/article/65405
https://coinculture.com/au/business/croatia-largest-supermarket-chain-accepts-crypto-20212512/
https://blockchain.news/news/mcdonalds-in-swiss-town-accepts-crypto-payments-in-btc--usdt
https://www.pymnts.com/cryptocurrency/2022/qr-codes-growing-popularity-crypto-payments/