As the world of finance and commerce continues to evolve, cryptocurrencies have increasingly become a topic of interest for businesses, investors, and consumers alike. While cryptocurrency adoption has been slow for larger corporations, a lot of data suggests that small businesses, independent makers, and local merchants stand to gain the most from embracing this revolutionary technology.
In this article, we will explore the benefits of using crypto assets — such as stablecoins — and how they stand to help small businesses from farmer’s market vendors to brick and mortar businesses. Furthermore, we’ll delve into how novel, emerging crypto solutions are paving the way for a new era of decentralized commerce.
The Burden of Swipe Fees
For small businesses, every dollar counts. Unfortunately, traditional payment processors often levy swipe fees that severely affect their profits. These fees — also known as “interchange fees” — are levied each time a customer makes a purchase with a credit or debit card, varying anywhere from 2.2-4% per transaction.
While swipe fees are an essential source of revenue for credit card companies, they can also be a significant expense for merchants, particularly smaller ones. In fact, these fees are often the 3rd highest cost for small businesses, falling just behind location and staffing costs. While regulations capping swipe fees have been implemented in some regions, such as the European Union and Austrailia, in the United States, however, these fees are largely unregulated. As a result, more and more merchants are looking for financial alternatives to help alleviate these unnecessary costs.
CornerMarket, a Web3 marketplace, is revolutionizing how small businesses and merchants can facilitate their day-to-day financial operations. By cutting out intermediaries and providing a direct connection between businesses and their customers, CornerMarket allows transactions to be processed directly on the blockchain.
This approach means no traditional payment processors are involved and CornerMarket collects only a 1% fee for transactions that take place on their platform. Furthermore, businesses using CornerMarket receive stablecoins (such as USDC, whose value is pegged to the US dollar) as payment for their products and services. These digital assets’ stability and predictability make them an ideal form of payment for businesses, as they don’t have to worry about the volatility often associated with other cryptocurrencies.
A Win-Win for Businesses and Consumers
In addition to cutting the cost of swipe fees by more than half, CornerMarket has created an online marketplace that connects businesses directly with their customers. Powered by Web3 technology, CornerMarket’s platform is truly peer-to-peer, enabling businesses and consumers to interact and transact directly, fostering a sense of community and trust that is often missing from most other centralized e-commerce platforms.
CornerMarket’s marketplace offers several advantages for small business owners. First, it allows merchants to reach a wider audience of potential customers interested in supporting local businesses and shopping with cryptocurrencies. Moreover, it empowers businesses to access a global marketplace without expensive advertising or marketing campaigns. The platform’s decentralized nature also means businesses retain full control over their digital storefronts and customer data without relying on centralized third parties.
And the benefits are equally enticing for consumers. Shopping on CornerMarket’s marketplace allows customers to support small businesses directly without intermediaries. Thanks to its use of blockchain technology, users also have an unparalleled level of security and transparency compared with traditional payment methods. Transactions on the CornerMarket platform are recorded on the blockchain, ensuring that customers and businesses alike can have confidence in their transactions’ legitimacy, fostering a keen element of trust and reliability within the marketplace.
As cryptocurrencies continue to gain mainstream adoption, small businesses stand to benefit immensely from integrating these alternative payment methods into their operations. Projects like CornerMarket are at the forefront of this revolution, providing local merchants with a secure, decentralized, and low-free platform for conducting transactions.
Recent trends indicate that the adoption of cryptocurrencies is accelerating. According to a report by Statista, the number of blockchain wallets worldwide has grown from 8.94 million to over 84 million between 2014 and 2022 and is expected to continue growing in the coming years.
Furthermore, a report by PwC suggests that the global market for blockchain technology could add $1.76 trillion to Global GDP by 2030, highlighting the significant potential for growth in this sector. Thus, businesses that adopt and adapt to these emerging technologies early on will likely be better positioned to succeed in an increasingly digital and interconnected global economy.
In fact, by embracing the potential of blockchain technology and cryptocurrencies (such as stablecoins), small businesses can save money on fees, expand their customer base, and foster long-lasting relationships in an increasingly digital world. Blockchain technology’s enhanced security and transparency can also promote trust and reliability, further solidifying the value proposition of decentralized financial platforms like CornerMarket.