Paying for coffee with crypto at the local cafe seemed like a dream just a few years back. Now, the world has changed, with Pew Research revealing that 17% of US residents invested in, traded, or simply used crypto by the middle of 2023. The numbers also keep rising because individuals want fast, safe payment options without middlemen.
Mobile wallets and tap-to-pay cards may continue to dominate retail checkout lines, but crypto payments have quickly gained ground. Crypto is already in everyday use, whether paying for streaming subscriptions or tipping creators. The dream that crypto may actually power a contactless payment future has quickly become a reality.
How Crypto Fits Into Real-World Spending Habits
More people leverage crypto payments for entertainment and other reasons, including sending stablecoins to friends in other countries or paying for their morning latte on a beach in Miami. People are integrating crypto payments into real-world scenarios, with the most notable changes happening in the digital realm.
Crypto Can Unlock Exclusivity
Gamers adopted crypto payment systems long before anyone else. For example, popular Bitcoin casinos offer more than just slots, poker, and more. iGaming expert Carlos De Lanuza says that these sites offer massive bonuses, speedy payouts, and support various cryptocurrencies, including Bitcoin and Ethereum. The speed, security, and convenience are unmatched by other payment options available on these sites.
Much like crypto casinos, video games accept crypto or in-game tokens like Gods Unchained or Axie Infinity. These games use blockchain-driven payments for improved speed and accessibility with lower fees. Gamers can also buy exclusive skins or gain unique access to limited content or tournaments.
Content creators also use the concept through platforms like Coil and Brave, allowing them to receive tips from their fans without involving bank accounts. It allows creators in regions with stricter banking limitations or unstable currencies to still earn.
Unique Crypto Streaming Opportunities
Content creators and influencers aren’t simply using superior content on social media to increase likes anymore. Instead, they’re turning to streaming platforms like Audius to let fans support their art directly using $AUDIO tokens, for example. They bypass label cuts and regional blocks, providing freedom for audiences and artists alike.
Platforms like Livepeer and Theta Network also reward users for contributing bandwidth or hosting content using crypto. The era of crypto payments in subscription models has also increased. Some news outlets, VPNs, and adult content platforms accept cryptocurrencies for monthly access. It’s about convenience, not just privacy.
How Crypto Will Take Over Contactless Payments
Crypto users have access to exclusive content, but they also benefit from the underlying reasons why people use cryptocurrencies, including how they reduce delays, improve security, and send payments anywhere around the world with lower fees.
Reduced Waiting Times
Crypto appeals to anyone seeking contactless payments that don’t rely on third-party verifications like credit or debit cards dependent on traditional banking systems. Instead, blockchain transactions are processed directly between two users, which reduces any delays.
Confirmation can occur in seconds, whether paying for a ride share or a soda. Small businesses and gig workers find this convenient because they don’t have to wait. Users can remove the time-consuming and costly friction caused by intermediaries.
Improved Security and Privacy
Crypto wallets use strong encryption modules with user-controlled private keys, making the wallets harder to compromise. Cards are typically skimmed or cloned, but crypto wallets are secured via private keys and biometric logins.
Meanwhile, crypto doesn’t share your personal information every time you pay for services, unlike traditional bank cards that share personal data with each tap or swipe. Many crypto coins like Bitcoin, Monero, or Zcash don’t expose bank details, names, or locations, which ultimately appeals to users in an era where data breaches are common.
Borderless Transactions
Anyone who has ever received money from abroad will understand the pain and high fees associated with cross-border transactions. However, there’s no need to rely on traditional banks or cards when settling amounts with anyone around the world. Sending USDC or Bitcoin costs much less and takes minutes, whether from Nairobi or New York.
Many global freelancers, remote workers, and travelers have adopted crypto payments as their preferred contactless payment method for global transactions. Crypto has also become more than a simple curiosity in regions with unreliable currencies, strict banking rules, or high inflation rates.
Tap-to-Pay Technology Is Here
Some critics say that crypto payments aren’t convenient enough as a contactless payment to be used anywhere. However, Flexa introduced tap-to-pay for crypto, which comes after multiple tap-to-pay options from CoinBase and Binance Pay have hit the market. Users can now have access to one of the most widely-used contactless payment features: tapping.
The feature is directly linked to crypto wallets, allowing users to tap or scan at compatible terminals without ever touching fiat currencies. Some services even allow users to convert crypto to local currencies so that merchants get paid in euros, dollars, or pounds. Apple is also working on its tap-to-pay options.
