Bitcoin

Twitch offers discounts when paying with Bitcoin

Amazon’s Twitch streaming platform appears to be improving its crypto strategy. The side that Mainly focuses on live video game streaming and now offers users a 10% subscription discount when paying with cryptocurrency via the platform’s payment processor, BitPay.

BitPay’s Chief Marketing Officer Bill Zielke told Cointelegraph that of the thousands of retailers the company works with, Twitch is the first major global brand to offer crypto-based advertising. Zielke added:

“We see Other online retailers interested in using crypto as a payment method for advertising purposesThis is exciting as most marketing payment options are primarily reserved for alternative payments through PayPal. ” […] Twitch is the first major retailer to join this trend. “

Is Twitch’s interest in cryptocurrency linked to games?

According to Zielke It is Twitch that offers a 10% discount on the subscriptionThis is important to note, as some believe that the promotional offer comes from BitPay. The fact that Twitch itself offers the doctorate It’s pretty surprising since the streaming platform seems to have a love-hate relationship with cryptocurrencies.

Twitch offers discounts when paying with Bitcoin
Twitch offers discounts when paying with Bitcoin

In March 2019, Twitch removed its payment options for subscriptions in Bitcoin (BTC) and Bitcoin Cash (BCH). A Reddit user reported the change and found that Twitch had suddenly removed BitPay as a payment processor. Another Reddit user found that Twitch had canceled all of its crypto-based subscriptions during that time. Three months later, Twitch reactivated the payment options in the cryptocurrency.

Although Zielke was unable to comment on Twitch’s sudden change of mind towards crypto in 2019, he mentioned that Twitch clearly wants to attract more crypto users to the platform. “When a company as big as Twitch offers all customers cryptocurrency-based advertising, it sends a clear message that they take it seriously.”said.

Speculation would also make some believe that Twitch’s growing interest in cryptocurrency is due to the increasing popularity of blockchain-based games and the use of digital assets in virtual worlds. With that in mind, it’s important to note that Twitch primarily addresses the gaming community. Current statistics also show that more than 16,000 games were played on Twitch in early July, which seems to be close to the platform’s all-time high.

Gaming pioneer Trip Hawkins and independent board member of DMarket, a blockchain-based gaming platform, told Cointelegraph that he believes that The cryptocurrency will continue to grow in importance in the coming years, especially as a topic in games that represent the economics of virtual goods and in other services related to games::

“Games are virtual worlds and Virtual worlds benefit from the reliability of more currencies and reliable payment methods. You also benefit from the ownership and monitoring mechanisms with which the cryptocurrency is known. So digital traders want to offer cryptocurrency as long as it’s not too volatile an instrument (that’s why we’ve seen it come and go a few times). “

Hawkins further noted that another trend is that Many live streaming platforms use crypt for tips. In December 2019, the mobile payment service MenaPay announced the support of Twitch with its stablecoin MenaCash. The decentralized Brave Internet browser also supports submitting tips on YouTube and Twitch.

DMarket founder and CEO Vlad Panchenko told Cointelegraph that Twitch is building a next-generation interactive platform. not only for gamers, but also for other entertainment sectors like the sports industry, which increases Twitch’s audience and overall engagement: “This is a Perfect example of how game companies predict the future by repositioning and restructuring their offerings with cryptocurrency“”

End of having (HODLing)?

Hawkins also noted that cryptocurrency prices recovered and even stabilized after the cryptocurrency market crashed in March. So, Using cryptocurrency as a payment method for online subscriptions can now be optimal. Based on Hawkins, Zielke noted that while Twitch’s cryptocurrency-based advertising is a bold move, Shows an even bigger trend as more and more merchants start looking for and accepting cryptocurrency based payments.

According to Zielke BitPay commissioned a study from Forrester Consulting to demonstrate the benefits merchants can get by accepting payments in cryptocurrencies. Although the study has not yet been published, Zielke was able to share some results:

“We discovered that Accepting cryptocurrency payments offers higher average order values, often 2 to 2.5 times higher. We have also found that accepting the cryptocurrency attracts new customer segments and lowers payment costs. In addition, it is often the case that half the cost of traditional payment methods that accept cryptocurrency almost eliminates fraudulent chargebacks. “

Stephan Widmer, CEO of European furniture e-commerce website Beliani, told Cointelegraph that the company had previously partnered with BitPay in a campaign in which customers had $ 100 (currently $ 116) for purchases of $ 400 ($ 465) would have received. ) or more when paying with cryptocurrency. He explained that the goal of the campaign was to gain a new customer base and increase sales with higher quality orders. According to Widmer The campaign results show that the average value of orders is approximately twice that of credit card sales.

While these results indicate major advances in the introduction of cryptocurrencies to the payment industry, there are still many challenges to be resolved. For example, the cryptocurrency remains a foreign word for many retailers, which is why most of them shy away from it. In addition, the volatility associated with cryptocurrency can be problematic for traders. Michelle O’Connor, vice president of marketing for the digital payment platform Uphold, told Cointelegraph Progress remains to be made for cryptocurrency payments to become widespread. O’Connor said:

“If you look at the cryptocurrency industry and the progress that has been made over the past 6 to 12 months to move from speculation to widespread acceptance, it looks promising, but there is still a lot to be done and improvements to be made How To Invest In cryptocurrency there are two sides, the holding company and the consumer, until recently there were very few easy options for consumers to spend their cryptocurrency, or reluctance to use it due to the speculative nature and volatility of the market to spend. “.

However, O’Connor noticed this The indecisiveness regarding cryptocurrency spending is beginning to disappearEspecially when the United States experiences a devaluation of the dollar. Also, The benefits associated with cryptocurrency payments are gradually being felt by both merchants and major credit card providers such as Mastercard.. “By eliminating merchant fees, processing times, and chargeback risks, all companies should review how they accept payments today and open up to the cryptocurrency world,” said O’Connor.

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