Emerging markets are wrought with opportunities for commerce. Much of this is due to the fact that these countries have high growth rates and slowly expanding infrastructures. These factors act as strong incentives for foreign investment.
With its apparent attractiveness, it’s understandable that many are looking to expand into developing markets. To do so, companies need to devote time to researching and understanding how to efficiently market their products and services according to each country. For many, a popular concern in international expansion is the matter of payments. Luckily, however, recent trends emerging in developing markets may offer an interesting opportunity.
The rise of crypto and alternative payments
It is of no surprise that emerging markets are contributing massively to the global economy. Despite this, these countries are still characterized as high risk. This is because whilst emerging markets do have ample opportunities for business, they are known for their extensive institutional voids and political instability.
For the longest time, these characteristics have created questionable business environments for emerging markets. The high risks associated have mainly acted as a deterrent to companies…until now. In an unprecedented turn of events, this instability has created a breeding ground for crypto adoption.
To elaborate, the uncertain political conditions of these countries tends to cause fluctuations in the value of their national currencies. This volatility can be mild or aggressive. In Venezuela, for example, hyperinflation is a massive destabilizing factor for their economy. With rates as high 10,000,000% and the average Venezuelan earning 70 cents a day, many people fear the loss of what little savings they have accumulated. It is because of this that many have turned to crypto, pushing the country to come in third on the Global Crypto Adoption index with one of the highest usage rates in the world.
Another prime example can be seen in the likes of Ukraine. Akin to Venezuela, the unstable political conditions of this Eastern European market are currently acting as a strong incentive for grassroot crypto adoption. This is further supported by their crypto-curious government and growing tech-savvy population.
In addition to a preference for crypto, there is an increased convergence between e-commerce and mobile technology. This is currently giving rise to an acceptance for alternative payment systems as they offer “faster, more versatile and easy-to-deploy payment options.”
Looking at cryptocurrencies and alternative payment systems
Although seemingly intimidating, this preference for cryptocurrencies and alternative payment systems presents an interesting opportunity for companies. We can understand why by diving deeper into the benefits provided by both.
Firstly, when using cryptocurrencies, transactions are executed with blockchain technology. Powered by a network of decentralized computers, there is no need for traditional middlemen. This makes transfers faster, more efficient and low cost. Further, crypto holders are always able to maintain full control over their assets regardless of extenuating circumstances within the market. Lastly, thanks to the cryptographic techniques employed, all transaction data is kept private.
Similarly, alternative payment systems offer the same benefits as they are characterized as generally being faster and offering greater flexibility to users. In addition, a central feature of many of these infrastructures is that they are easy to use for both merchants and individuals. In amongst some of the current technological advancements in this area is none other than blockchain technology.
With extensive benefits to be reaped, to not consider adopting crypto and alternative payment systems could be a huge misstep for companies looking to expand into emerging markets.
The question now remains: how does one harness these benefits?
Expanding into emerging markets using crypto payments
For expanding businesses looking to harness the benefits of both crypto and alternative payment systems, the most optimal strategy would be to adopt a blockchain-based payment solution.
At PumaPay, we offer a comprehensive crypto payment system that addresses the needs of merchants as well as their clients. Utilizing blockchain technology, our solution combines the advantages of crypto and the ease-of-use of credit cards to provide a faster, more efficient alternative to traditional payment systems.
We believe our services stand out from most alternative payment solutions because we prioritize innovation and keep the interests of merchants at the heart of all our decisions. This is reflected in our development of our PullPayment technology. This protocol enables businesses to easily accept crypto via customizable billing models that were designed to ensure maximum compatibility with virtually any merchant’s services. Further, to create a comprehensive system, we designed a user-friendly mobile wallet app for end-users that allows customers to easily pay in crypto for the services of PMA-integrated companies. Currently, we are looking to accommodate the needs of users in emerging markets by beginning the process of localizing our wallet app through expanding the language settings available for our users.
Going forward, as emerging markets continue to grow and a large portion of their population continue to develop a preference for crypto and alternative payment solutions, it is vital that firms consider blockchain-based payment infrastructures when developing their plans for expansion. Notably, whilst it’s important to remember that PumaPay offers a hassle-free solution that combines the benefits of alternative payments and crypto, merchants should conduct as much research as possible to make sure they make the best decision for their company.
Are you looking to expand into emerging markets?
Book a consultation with PumaPay to learn more about what we can do to maximize your chance of success.