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eBay is next in line to join a long list of big brands bringing cryptocurrency payments onboard. Is this the validation crypto needs?
The global average cryptocurrency ownership rates are estimated to be 3.9%, with over 300 million crypto investors making up that percentage. Crypto rapidly evolved from a somewhat mythical currency to one you can use to buy a Tesla or a holiday through Expedia.
Now it’s eBay’s turn as CEO Jamie Iannone announced eBay could start to integrate crypto payments into the popular e-commerce marketplace. Is this the validation crypto needed, and will it lead more people to explore crypto currencies? Let’s explore.
eBay’s Crypto Plans
eBay recently announced that they had plans in the pipeline to make cryptocurrency a payment method on their eCommerce platform. The idea is fuelled by eBay’s ambition to be the marketplace for Gen Z and millennial shoppers – they’re now in fierce competition with the likes of Etsy, Depop, and Vintage that already have Gen Z and millennial shoppers right where they want them.
eBay already manages $85 billion of volume through its current payment modes – introducing cryptocurrencies should open up a new revenue channel, but it won’t be eBay’s first attempt. eBay attempted to integrate cryptocurrency payments into their platform in 2014 and failed.
Still, crypto wasn’t as massively popular and understood as it is today – people were still skeptical about cryptocurrency, and there weren’t half as many investors.
Are People Finally Taking Crypto Seriously?
eBay introducing the idea of cryptocurrency payments is a surefire validation that cryptocurrency needs. Despite crypto getting attention from big brands and investors, it’s still a somewhat subversive currency – validated by the fact that global ownership is only 3.9%. It’s a highly volatile market that’s difficult to predict even with the most sophisticated trading algorithms.
Still, there’s no denying that more people are interested in crypto, especially the age group that eBay is targeting. In 2021, the Pew Research Center found that cryptocurrency – Bitcoin in particular – surged in popularity, with 31% of 18 to 29-year-olds dabbling in the crypto investment market.
Big brands introducing the option of cryptocurrency payments also helps to build trust. Think back to the early days of PayPal – there was a lack of trust in the digital payment platform until big brands started to partner with PayPal.
Big Brands Already Offering Crypto Payments
eBay is actually late to the crypto payment party – tons of big brands have already validated the use of cryptocurrency by adding it as a viable payment method. It was Microsoft that began accepting Bitcoin as a payment method in 2014 – since then, tons of brands have jumped on the bandwagon because there are benefits to the business and shopper.
Brands benefit from the reduced transaction and card processing fees, and shoppers benefit from increased transparency and speed and the ability to use their digital currency for more than just trading. Big brands that have jumped on Microsoft’s bandwagon include:
- Lush
- Tesla
- Etsy
- Shopify
- PayPal
- Starbucks
Cryptocurrency is still rapidly expanding and intertwining with new concepts like the Metaverse and NFTs. NFTs are another venture eBay is exploring alongside many other big brands, like Nike and Pepsi. The metaverse and NFTs both use crypto as the only accepted currency – thus further validating its uses.
Soon, that validation will look less like validation and more like widespread acceptance and understanding. Cryptocurrency has evolved from a misunderstood currency to one that big brands advocate. Traded across multiple platforms with millions of investors taking ownership – this digital currency is no longer the mythical being it once was.
