Is the Channel Going Crypto?

Cryptocurrency is not new, but partners accepting customer payments in crypto? That’s crazy, right?

Apparently not so much. In recent weeks, SADA announced it will do just that, paving the way for companies that engage with blockchain ecosystems and transactions to transform their businesses through the power of Google Cloud.

Further, Abundant IoT Technology also recently said that advisors can now earn residuals in the form of Helium cryptocurrency token HNT.

We wanted to know… is crypto the next big thing? And what does it mean for the way partners do business?

What This Means for the Channel

MSP Growth Coalition Juan Fernandez

“I often talk about pivoting toward the customer and enhancing buying experiences as being essential for a modern business,” said Juan Fernandez, co-founder and CEO of MSP Growth Coalition. “This is a good example of a company meeting their customers where they are or want to go. Many companies are experimenting with crypto and other types of digital currencies. This, I feel, will be a trend that will continue into the future as we become more of a digital native culture.”

Align Communications’ Vinod Paul

“There is an audience that gets excited talking about fintech disruption and how it can impact financial systems,” said Vinod Paul, COO at Align. “But this excitement often gets muted when leveraging payments in the form of cryptocurrency. Specifically, because cryptocurrency is on the “bleeding edge” of maturity within the technology landscape. Channel adopters are going to have to be secure in the fact that their systems/processes have protections in place with leveraging this payment process and also be open to the volatility of the currency market.”

There is no doubt that the blockchain industry will one day be a cornerstone of the future financial services industry. The largest challenge for the broader market is maturation of the technologies. This includes adoption within the commercial marketplace, but most importantly, adoption from the end user consumer base. 

“If we just look at the last 10 years alone, we watched bitcoin’s value go from zero to over 60,000,” said Fernandez. “That says a lot; most importantly, it proves there is a market and there are plenty of people that want it. That being said, it also points to a new ecosystem that is being born.”

Let’s look at some of the facts. According to Blockchain.com, Wallets, something that makes purchasing Bitcoin possible, has reached over 81 million users in 2022. User numbers for multiple cryptocurrency apps worldwide jumped in 2021, as is revealed when comparing download figures from the Coinbase, Blockchain Wallet, Crypto.com, BRD, Trust, Luno, Binance, Bitcoin Wallet, Bitcoin Wallet by Bitcoin.com, and Coinbase Wallet apps.

“This answers  the age old question, “What’s in your wallet?” There is definitely something new in our wallets, and its cryptocurrency,” said Fernandez.

A Money Movement

So, is this the next movement? Will more providers be adopting this in the near future?

“I believe that more providers will adopt this sometime in the future, but the timeline of this future is too gray to predict,” said Paul. “Blockchain and cryptocurrency, like most disruptive models, have adoption cycles which take longer than most to adapt. This is specifically because of the stability of the currency and more importantly, the security to ensure the protection of these assets.

It’s also worth mentioning that the crypto industry has been a hotbed for high-yield attacks. This has resulted in $3 billion in losses across 13 attacks in 2022 alone. With stats like these, providers might be wary of adding unnecessary risk.  

“There are many companies moving toward cashless systems and adopting digital currencies,” said Fernandez. “I think this is most definitely something that we will see moving forward. As businesses aim to meet their customers where they are, they will begin to adopt new payment types and technologies.”

Whether or not partners are banking on bitcoin, this will certainly be a trend to watch. 

“There is a lot of hype around the value of blockchain and the future of the cryptocurrency market,” said Paul. “Most importantly, for there to be adoption, there has to be a proven track record of the ability to secure this asset and the broader cryptocurrency marketplace.”