The world’s largest provider of Bitcoin and cryptocurrency payment services Bitpay has shared the results of a study conducted by research and advisory firm Forrester Consulting entitled The Total Economic Impact Of Accepting Bitcoin Using BitPay.
There are four main findings based on interviews with four merchants that accept bitcoin and other cryptos. First, up to 40% of customers that pay with crypto are new to the merchant. Second, purchase amounts are twice that of credit card purchases. Third, crypto is less expensive than card cards, and lastly, there are no fraud-related chargebacks. The study was commissioned by BitPay and examines the cost savings and business benefits enabled by accepting bitcoin and other cryptocurrencies using the platform.
BitPay CEO and Co-Founder Stephen Pair said “We believe the Forrester study confirms what we’ve known for some time now,” Pair said. “Accepting bitcoin and other cryptocurrencies through BitPay saves merchants considerably on fees and unlocks a whole new customer base.”
According to the study, “While adoption of cryptocurrencies like bitcoin is still emerging,” the merchants interviewed “have captured significant benefits at relatively low risk and cost,”, with the average return investment of those who integrate BitPay being 327%.
The study further determined four ways in which merchants benefit from the addition of accepting cryptocurrency through BitPay. “Generating new sales by attracting first-time buyers who prefer paying with bitcoin or other cryptocurrencies” lead Forrester’s list. This is followed by “increasing the size of transactions because buyers who pay with cryptocurrency tend to spend more than other customers.” Third, merchants paid lower transaction costs, the study continued, “since BitPay transaction fees are lower than those for other payment types.” Finally, the addition of BitPay as a payment option reduced risk “by greatly lessening or eliminating issues related to fraud or mistakes.”
Citing a reported increase in online shopping during the Covid-19 pandemic and a recent survey, 11% of consumer respondents said they used a digital payment method for the first time. Forrester notes “BitPay allowed merchants to serve and support cryptocurrency adopters better and to provide all customers added options while shopping.”