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On the plus side, merchants benefit from little or no The CryptoBucks approach is similar to Verifone's.
chargebacks; there is no rescinding a cryptocurrency Consumers use their crypto wallet of choice, selecting
transaction. Besides, to pay using a crypto wallet the the crypto payment option at checkout and scanning
buyer has to have physical access to the device on which a CryptoBucks-generated QR code. On the back end,
the wallet is stored and enter the correct PIN, or they need Cryptobucks immediately liquidates a corresponding
access to the wallet's unique private key. (It is worth noting, amount from its in-house reserve of cryptocurrencies for
however, that because cryptocurrencies are digital, they the merchant payout. "We're trading crypto at the same
are prone to hacking, and crypto wallets can be stolen. In value at the same time," Brown said.
one common scam, hackers will contact a mobile provider
and convince them to transfer a wallet holder's number to Like Verifone, Cryptobucks works with ISOs and agents,
theirs, thus gaining access to the wallet and credentials.) with compensation plans that closely mirror those for
traditional card processing deals.
Merchant fees can be lower than interchange. BitPay, for
example, charges just 1 percent of the transaction fee. Google, PayPal, Square
Belostock characterizes the pricing of crypto payment Some earlier use cases for crypto payments were with
processing for Verifone merchants as "similar if not less" ecommerce businesses. Shopify, BigCommerce, Magento
than traditional processing fees. When you factor in the and Overstock.com were among them. These transactions
savings from fraudulent chargebacks, however, overall are initiated through native crypto wallet apps and pro-
costs are lower, he said. cessed using crypto gateways, like BitPay and Coinbase,
bypassing the card network rails.
Crypto payment acceptance also attracts shoppers
and boosts average spend. A Forrester Research study Then there is PayPal. "PayPay isn't actually a cryptocur-
commissioned by BitPay in 2020 found consumers paying rency, but it facilitates transactions and collects fees like
with crypto have an average order value of $450, compared the ecommerce solutions," Wubbels said.
to $200 for those using traditional forms of payment.
PayPal obviously has grander plans, however. On Feb. 9
BitPay and Pymnts.com collaborated on a survey in 2021 it announced the creation of a "a cross-disciplinary advi-
that led to estimates that 30 million adult Americans sory council on blockchain, crypto and digital currencies."
owned cryptocurrency; 24 million of those consumers The company has tapped "some of the world's leading
were expected to use crypto to pay for at least one purchase experts in cryptography, distributed technology, regula-
within the next year. An estimated 17 million consumers tion, economics and capital markets," Jose Fernandez da
not owning cryptocurrency were expected to do the same. Pante, PayPal senior vice president and general manager,
As a result, the report concluded that approximately 1 said in a statement. He said the move would "support not
percent of retail sales would involve cryptocurrencies only our current and future products in the space but our
within a year. broader mission of leading the way towards a more afford-
A door opener able, efficient and inclusive digital financial system."

ISOs and agents offering crypto payment acceptance, Google, too, has been bit by the crypto bug. In January, the
especially those early to the game, will benefit from company hired a former PayPal senior exec to lead its pay-
differentiator status. "It opens doors," Brown said. "It has ments division, according to published reports. Google al-
brought us some of the largest traditional processing ready has made inroads with Google Pay, the company's
accounts we have on the books right now." digital wallet for online and mobile payments. Back in
2020, Google Pay added integration for the Coinbase Visa
Cryptobucks, created by Aliant in partnership with the debit card that enables Bitcoin payments. And there is
software development company Shokworks, bills itself as speculation that Apple will build a Bitcoin wallet into its
the first payment app to support credit, debit and crypto wallet app.
payments through one app. The company had several early
successes, including the first cryptocurrency acceptance Square is also known to have designs on the crypto pay-
deal with an NFL team, the Miami Dolphins in 2019. It ments space. The company's recent name change to Block
currently supports acceptance of 11 cryptocurrencies. Inc. was widely seen as a nod to that. Users of the Square
Cash App have long had the option to spend in Bitcoin,
"Using cryptocurrency is perfect for sports teams, airlines, and Spiral (formerly Square Crypto) is a corporate unit
gaming organizations, automotive sales, jewelry, real that builds and funds open-source Bitcoin projects.
estate and more," said Shokworks COO Daniel Laplana.

"During the last two quarters of 2021 we began seeing a Patti Murphy is senior editor at The Green Sheet and self-described
lot more interest from business owners, especially those payments maven of the fourth estate. Follow her on Twitter @GS_
in tech and those selling high-ticket items," Brown said. PayMaven.

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