The mainstream adoption of crypto and its use in online transactions has seen explosive growth over the past few years.
As the regulatory approach to crypto becomes more streamlined and more and more new users enter the crypto market and start using the various cryptocurrencies in daily transactions, the growth rate of companies that allow for crypto payments has also followed suit.
E-commerce and iGaming have been at the forefront of this growth and stablecoins, such as USDT, are especially popular among providers and clients.
For this reason, the number of sites where you can bet with USDT have also seen steady growth, with a majority of major online sportsbooks and casinos now accepting USDT, Bitcoin, and Ethereum, among other coins.
There are several key reasons for the growing popularity of USDT in online transactions, which we will discuss in more detail in the coming sections.
Advantages of using USDT for online transactions
As we have already mentioned, there are a few key advantages of using USDT as a payment method when shopping online or making bets with sportsbooks and playing casino games. These advantages include:
- Stability – USDT is a stablecoin that is pegged to the U.S. dollar, which means that it is free of the price fluctuations characteristic of Bitcoin and other cryptocurrencies
- Speed – USDT transactions are very fast and only take a few seconds to complete, which is an added convenience for wallet holders
- Low fees – USDT transactions generally incur lower fees compared to traditional banking or payment processing systems. This can result in cost savings, especially for cross-border transactions, where fees associated with currency conversion and international transfers can be significant
- Privacy & security – transactions made in USDT have high-grade encryption and the wallet beneficiary is private, which adds a layer of security for clients
- Accessibility – e-commerce websites and online casinos that do support crypto are more than likely to include USDT in the list of accepted coins, due to the popularity of USDT
These factors make USDT a very attractive option for online transactions, whether for online shopping, gambling, or money transfers between wallets.
USDT adoption in a growing crypto market
The global cryptocurrency market has marked a turnaround over the past few years, with Bitcoin driving the bulk of the growth.
However, USDT has not lagged too far behind – reaffirming its position as the top stablecoin, with an average daily trading volume of over $60 billion for the USDT/USD pair.
E-commerce is the primary driver of USDT adoption in mainstream businesses, which itself is a fast-growing industry poised to reach over $21 trillion in market size by 2030.
What sets USDT apart from other cryptocurrencies is its role in the global crypto market, not only as a method of payment, but also as an exchange tool.
As the most popular stablecoin, USDT directly benefits from the growth of trading volumes on the cryptocurrency market, which in turn gives more and more businesses the necessary incentives to adopt USDT as a payment method.
This cycle directly interlinks the trading and transaction channels used by USDT holders, with both growing in tandem at a comparable pace.
Tether’s partnerships with e-commerce companies
To help accelerate the rate of USDT adoption among e-commerce companies, the parent company Tether has been making strategic partnerships with payment processors, such as PayPal.
This allows Tether to increase the reach of USDT by making transactions available through an increasing number of digital payment providers.
An increased rate of adoption benefits Tether and USDT in a few key business areas:
- Streamlined transactions – Payment processing companies often have established networks and integrations with merchants, online platforms, and financial institutions. Partnering with these companies can increase the accessibility of USDT as a payment method, allowing users to transact with USDT in more places and across a wider range of industries
- Improved regulatory compliance – Partnering with regulated financial companies ensures that clients have access to financial channels that comply with AML and KYC policies
- Customer confidence – Collaborating with reputable payment processing companies can instill confidence in users and merchants regarding the security and reliability of USDT transactions. Leveraging the established reputation and trust of payment processing partners can help Tether build credibility for USDT
- Enhanced accessibility – Payment processing companies often have established networks and integrations with merchants, online platforms, and financial institutions. Partnering with them can increase the accessibility of USDT as a payment method
Therefore, the increased adoption of USDT gives customers access to transactions done using a secure and transparent payment channel, with major companies like PayPal providing the infrastructure to facilitate the transactions.
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