- According to the Global Findex 2021, at least 33% of African adults prefer mobile money accounts or DeFi systems, compared to 10% globally.
- Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, stated that Ferrari decided to launch a crypto payment gateway in response to the market.
- According to the Crypto Payment Gateway Market 2021, the crypto payment gateway market was valued at $1 billion.
The entire web3 industry has faced numerous hurdles over the years. In a year, the crypto winter has significantly damaged the ecosystem, affecting affiliate franchises like the NFT marketplaces. The US crypto market has plummeted, with plenty of exchanges looking for greener pastures outside its borders. The entire web3 industry has faced these hurdles but has retained its trillion-dollar valuations. Amid this crisis, one positive trend has caught the eye of many investors, crypto payment gateways. In two years, DeFi-based systems have overhauled the transaction volume of many organizations. Payment platforms like Visa, MasterCard, and PayPal have taken the initiative to forgo traditional financial systems and embrace blockchain technology.
In recent news, Ferrari has introduced a new crypto payment gateway to all its clientele. This new milestone will overhaul the progress of DeFi-based systems throughout this digital era.
Ferrari accepts a crypto payment gateway system
For some time, Decentralized finance systems have grown significantly over the years. Its fundamental principle revolves around the revolutionary concept of blockchain technology. Through this new outlook on finance, several industries have emerged. Among them include the fintech industry, one of the fastest and most lucrative businesses today.
Initially, traditional financial systems failed to promote financial inclusion throughout the globe. For instance, in Africa, less than 40% of the population had access to financial services. In two decades, this figure shot up to more than 55%, showcasing the direct benefits of decentralized finance systems.According to the Global Findex 2021, at least 33% of African adults prefer mobile money accounts or DeFi systems, compared to 10% globally. Unfortunately, traditional finance systems are steadily becoming obsolete with attempts to control the web3 industry by centralizing blockchain technology. To keep up, many have opted to turn to DeFi to provide such solutions within Africa and keep up with the technological evolution.
As a result, crypto payment gateways have become a popular notion. Ferrari, the Italian Luxury sports car automaker, recently forwent its take on digital assets. It has officially announced its latest project, implementing a crypto payment gateway. According to the Italian Luxury sports car automaker, they released an announcement on 14th October of their intent to expand the crypto payment option to Europe.
Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, stated that Ferrari decided to launch a crypto payment gateway in response to the market. The crypto market has survived numerous hacks, scams, and lawsuits, showcasing its intent to stick around. Currently, the market is regaining its former glory, with Bitcoin valued at $28,571.60.
This figure represents a significant leap from its $16,949.61 mark in December 2022. In addition, today, several veteran crypto traders have made millions by sticking with the market despite its numerous turmoils. He said, “Some are young investors who have built their fortunes around cryptocurrencies. Some others are more traditional investors, who want to diversify their portfolios. This will help us connect to people who are not necessarily our clients but might afford a Ferrari.”
The Italian luxury sports car automaker has partnered with Bitpay, the leading crypto payment processor, to establish its crypto payment gateway. Ferrari has claimed that this move will be a beta test and, hence, will only accept Bitcoin, Ether, and Stablecoin USDC.
If the new crypto payment gateway kicks off smoothly, Ferrari has clarified that it will incorporate different payment processors in other regions. In addition, since the new payment process will be a DeFi system, the prices will not change, and they will not accommodate fees or surcharges when using it. Given its positive take on digital assets and blockchain technology, Europe will be the first testing ground.
The Italian carmaker will launch the crypto payment gateway by the first quarter of next year and intends to expand its horizon to other crypto-friendly regions. Currently, Europe, the Middle East, and Africa are the company’s largest benefactors. They account for 46% of its total car shipment, highlighting future crypto-related partnerships within them.
The Trend for Crypto payment gateways
In 2021, Research and Markets released a report titled, “Crypto Payment Gateway Market.” This documentation highlighted the growth, development, and potential of crypto payment gateways. According to the report, the crypto payment gateway market was valued at $1 billion at the time, and it estimated the franchise to reach $5.4 billion by 2031. The increasing number of blockchain developers and digital asset adoption in the market significantly affected its valuation. The report stated that the market will grow at a CAGR of 18.7% from 2022 to 2031.
The era of traditional financial systems has ended abruptly, with more institutes opting for DeFi systems. This led to fintech and more blockchain-based financial applications, but crypto payment gateway adoption took some time. The 2022 crypto crash significantly damaged the industry’s reputation, causing a mass shutdown of crypto payment gateways. Fortunately, several industries took this as an opportunity to dominate the growing market gap.Organizations like PayPal, Visa, and MasterCard reach out to companies like BitPay, and Coinbase to set up crypto payment gateways between several partnerships. This feat significantly expanded the market. Unfortunately, despite the high transaction rate and easy scalability of crypto payment gateways offered, many were still skeptical. Eventually, the franchise differentiated into two groups; individuals and businesses.
This means that several investors and developers have created standard crypto payment gateways, offering different services throughout the market. This led to a significant rise in crypto payments, threatening the very foundation of DeFi systems. In addition, several businesses have created their version of crypto payment gateways. The latter has proven more tasking with developers struggling to integrate blockchain technology with centralized systems.
Furthermore, the instability of their payment gateway software and lack of awareness have hampered progress. Fortunately, through corporate partners like Ferrari and BitPay, spreading crypto awareness is much easier. Through this trend, many organizations and industries, like the Gaming and VR industry, have successfully launched functional crypto payment gateways for their users.
Companies like Binance, BitPay, Circle Internet Financial Limited, Coinbase, Coinomi, Coinremitter, Cryptopay Ltd., NVIDIA Corporation, and SecuX Technology Inc have significantly propelled this dynamic shift. These players have adopted several new strategies and techniques to penetrate the market and introduce a crypt payment gateway as a valid payment option.
With Ferrari partnering with BitPay to establish a new crypto-payment gateway, the fate of traditional finance systems is all but sealed. DeFi systems advocate for user empowerment and go to great lengths to protect its visions. However, several actors have tried to control decentralization through centralized exchanges and some fintech solutions.
Unfortunately, from the FTX crash, the concept of centralization in Web3 is all gone, with the industry highlighting its dangers. Today, only a few organizations accept crypto payment gateway systems, but their rates have improved drastically. As a result, Banks and other finance sectors have taken a keen interest in blockchain technology. Each hopes to unlock suitable systems that cater to the needs of its users without completely releasing control.
This may not be the agenda the web3 industry hopes for, but it’s a good start for change. It’s only a matter of time before crypto and digital currency dominate the traditional financial systems.