We live in the day and age when cryptocurrencies have broken free from the confines of geeky subcultures and are now making their way into the mainstream spotlight. It's a thrilling time for digital currencies as more and more companies jump on the crypto bandwagon, driving the popularity of cryptocurrencies to unprecedented heights.

But who exactly are these companies embracing cryptos, and what's prompting them to do so? Let’s try to find the answers to these questions together.

 

Cryptocurrency adoption by businesses: Examples and rationale

 

The undoubted benefits of digital currencies continue to captivate an increasing number of businesses, propelling them to embrace this technology. Let's explore the diverse array of companies that have joined this trend and discuss the reasons prompting them to do so.

 

Famous businesses adopting crypto

 

Microsoft

Microsoft started accepting crypto as payment for apps, games, and other products and services on Xbox and Windows stores in 2014. It was one of the first companies to start accepting Bitcoin for its goods and services, primarily through a partnership with BitPay. Despite a temporary halt due to market volatility that took place in the past, Microsoft later resumed its crypto acceptance, particularly for Xbox store goods. In 2015, the company even tried to venture into blockchain technology by launching Azure Blockchain Service; however, this project has been shut down in 2021.

AT&T

AT&T, one of America’s largest telecommunication holdings, has joined the ranks of crypto-friendly businesses back in 2019. It was then that it became the first major mobile carrier to accept cryptocurrency payments. To fulfil this task by offering customers the option to pay their online bills using cryptocurrencies, the company partnered with the BitPay service. From then on, AT&T clients could use crypto via the company’s internal payment systems when reaching their accounts online or using the company’s official app.

ExpressVPN

ExpressVPN, a company providing virtual private network services, is another renowned business that’s friendly to crypto. As a subscription-based service, ExpressVPN is interested in enhancing convenience, privacy, and security of payment means it offers to clients, which blockchain technology provides. Therefore, since 2014, it has been accepting Bitcoin as payment for its services. Moreover, according to the company’s own statement, users who choose to pay with Bitcoin can enjoy enhanced privacy, since they only need to provide their email address to sign up.

PayPal

PayPal, a leading online payment platform, has fully embraced cryptos, allowing users to buy, sell, hold, and track various digital currencies, including Bitcoin, Ethereum, Litecoin and others, through their platform. Among other things, this decision was motivated by the significantly lower fees associated with digital transactions compared to traditional credit card transfers. Although there are restrictions on transferring crypto out of PayPal's digital wallet, the platform provides users with a seamless conversion of crypto into fiat currency for purchases, eliminating any unnecessary steps.

Starbucks

Starbucks made its first steps towards tokenization by forging a strategic partnership with the Bakkt app. This allowed Starbucks customers to seamlessly add various cryptocurrencies, including popular options like Bitcoin and Ethereum, to their Starbucks card, and use them to pay for goods and services. While with this mechanics customers do not directly purchase their coffee with Bitcoin (since the conversion takes place beforehand), cryptos are exchanged into conventional currencies so quickly and effortlessly that the users are unlikely to even notice this intermediate step.

Coca Cola

The Coca Cola company is another world-famous business to step into the crypto territory. However, for now this brand’s exposure to cryptocurrencies is limited by geography. Hence, by utilizing the financial technology provided by the Centrapay platform, Coca Cola allowed paying for its products with Bitcoin when buying them at vending machines in Australia and New Zealand. Such measures look more like an experiment than the final decision to join the ranks of crypto-friendly businesses. However, when it comes to one of the world’s most famous companies, even these baby steps seem to have an overwhelmingly positive impact on the public image of crypto.

Tesla

No list of crypto-friendly businesses would be complete without mentioning Tesla. In the past years, this company, which has always positioned itself as an innovative technological pioneer, was actively implementing Bitcoins as a means of payment for their goods and services. Later, however, they removed this option and focused exclusively on one crypto: Dogecoin. Now, the world’s most famous meme-coin can be used to purchase some Tesla-related items from the category of merchandise and accessories.

These prominent players illustrate how crypto has stormed into the business world, captivating companies of all kinds. However, it's important to remember that this is just the tip of the iceberg. Countless other forward-thinking businesses worldwide are also jumping on the crypto train, each adding their unique touch to this transformative movement. Together, they are reshaping the business landscape, propelling digital currencies from the sidelines to the center stage of global commerce.

 

Businesses adopting crypto: Possible benefits

 

With the number of new crypto adopters among renowned industry titans and promising newcomers growing exponentially, the question arises: what factors prompt these businesses to adopt crypto? Which benefits do cryptos have that make them just as (if not more) attractive as time-proofed fiat currencies? In addition to obvious answers like enhanced security and privacy that crypto provides, one can distinguish some other notable factors, including the following:

• Global access. Cryptocurrencies are borderless and can be used by anyone, anywhere in the world. By offering seamless cross-border transactions, they eradicate any geographic boundaries for businesses, enabling them to expand their customer base and tap into international markets.
• Speed. Cryptocurrency transactions are typically faster compared to traditional banking, allowing businesses to conduct near-instantaneous payment operations, both on the sending and on the receiving side of any transfer.
• More affordable transaction fees. Crypto payments often come with lower fees compared to traditional payment methods. This may be less visible in the context of peer-to-peer payments between individuals; however, since businesses usually operate with large sums on a frequent basis, switching to crypto may save them tons of money.
• Reputational gains. Crypto has long become the synonym of financial innovation and trendsetting. Accepting crypto payments can establish businesses as modern, forward-thinking brands. This, in turn, has every chance to attract new progressive customers and enhance such companies’ brand image.
• Elimination of foreign exchange fees. This factor is especially relevant to businesses conducting operations internationally. Due to decentralization, cryptocurrencies are not tied to any specific country, allowing businesses to offer the best value to customers worldwide without having to convert their national currencies into other countries’ fiat.
• Income diversification. By accepting cryptocurrencies, companies open new revenue streams, reducing reliance on traditional income sources. This strategic move allows businesses to navigate market fluctuations and increase their financial stability, which may come in handy in case of financial troubles.

This list is far from complete; however, it is enough to demonstrate that cryptocurrencies have plenty of benefits that make businesses view them as attractive alternatives or complements to traditional payment means.  

 

Businesses adopting crypto: Potential risks

 

Undoubtedly, benefits of crypto do not come without potential shortcomings preventing more companies from adopting them at the moment. Here are some of the risks associated with cryptocurrencies in a business context:

• Volatility. One of the most renowned cryptocurrency market trends, volatility can bring crypto holders either outstanding profits or colossal losses. While beneficial from the standpoint of investment opportunities, this feature could cause harm to companies, especially when it comes to paying for goods and services. A solution to this issue could be found in relying more on stablecoins which combine the benefits of cryptocurrencies and the stability of fiat.
• Regulatory challenges. The regulatory landscape surrounding cryptocurrencies is still evolving. Businesses may face uncertainty of changing regulations, which can create compliance challenges and potential legal risks. At the same time, crypto regulations are not adopted overnight; therefore, businesses have every opportunity to trace the process of their adoption and react accordingly if some radical changes are likely to occur.
• Limited acceptance. While cryptocurrency adoption is on the rise, digital currencies are not yet universally accepted as a payment method. Businesses that solely rely on crypto payments may impose artificial limits on their customer base, as not all individuals or regions have embraced cryptocurrencies. However, a company can mitigate this problem by diversifying its financial mechanisms and combining crypto with fiat and other payment means rather than relying on only one of them.
• Technical complexities. Adopting crypto can introduce a range of technical complexities for businesses, from creating a payment infrastructure from scratch to implementing robust cybersecurity measures. These efforts may require companies to implement extra resources and time. However, today businesses can mitigate these complexities by seeking the expertise of service providers who specialize in crypto payment systems and cybersecurity. This shortcut could help those willing to adopt crypto to navigate the integration with confidence and ease.

For sure, there are plenty of factors that can rightfully alert businesses and make them think twice before integrating crypto into their operations. However, as we can see, effective solutions can be found for most of these challenges, making them insufficient to serve as a strong argument against crypto integration.

 

Final thoughts

 

Wrapping up, global businesses, from recognized industry giants to young promising startups, are actively implementing cryptocurrencies in their operations. The list of the most famous businesses that have already partially or fully adopted cryptocurrencies includes, but is not limited to, such companies as Microsoft, AT&T, ExpressVPN, PayPal, Starbucks, Coca Cola, Tesla, and many others.

What motivates businesses to adopt cryptocurrency? Among the most compelling reasons, one can single out fast and borderless digital transactions, low commissions, simplified procedures for transferring funds, reputational advantages, and diversification of earnings. On the other hand, cryptocurrencies are not without risks, including volatility, limited acceptance, uncertain regulations, and technical challenges. However, if a company is truly committed to getting the most out of cryptocurrencies, all these issues can be addressed.

Undoubtedly, the general increase in interest in digital currencies from the world's businesses demonstrates that cryptos continue their victorious march across various industries, leading to disruption of traditional banking practices. Cryptocurrencies are the assets of the future, and those who want to be ahead of global trends may want to seriously consider buying crypto and starting their journey through this exciting world where high risks come shoulder to shoulder with great opportunities.

Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.