Crypto-Led Growth: An Embedded Finance Trend for 2023
Cryptocurrency is a rapidly evolving industry that can attract new customers and increase revenue like no other product can. At Cybrid, we call this Crypto-led Growth. In 2023, it's more important than ever to pay attention to this space and add crypto to your roadmap to attract new customers, retain existing ones, and increase user engagement and revenue. Let's take a look at the top crypto buyers and the rapid adoption of crypto, and how embedding crypto into your products with the help of Cybrid can benefit your organization.
Embedded Crypto in Finance
Crypto adoption is growing rapidly, with the total market hovering around $2 trillion dollars for the last 12 months and almost touching $3 trillion in late 2022. Crypto is worth 16% of the gold market, with Bitcoin alone representing over 6% of that. Furthermore, the user base of crypto is ballooning, with around 300 million users worldwide, or about 4% of the world's population. There's an expected compound annual growth rate (CAGR) of approximately 56% projected through 2025, and there will be another 700 million users participating in the crypto market in the next three years.
Millennials and Gen Z are the largest cohort of new investors in the cryptocurrency space, with 46% of people aged 35–44 and a whopping 55% of people aged 18–34 showing high interest in buying crypto. Women are also showing more interest in crypto, with about 1-in-3 American women planning to buy crypto in 2023, according to a BlockFi survey.
With growing inflation rates, individuals are looking for solutions that can cater to their rising need for alternative investment opportunities. Organizations can deliver on these new desires with a variety of crypto products, such as embedded finance use cases and crypto on offramp API, by partnering with comprehensive crypto banking-as-a-service providers like Cybrid.
Crypto as a Strategy for Growth
Crypto is going to change the game in finance, and embedding it into your products with Cybrid's all-in-one platform can help drive significant growth in your business. While the idea of crypto may be daunting to some customers, gradually increasing their Crypto IQ can let them put a toe in the water without jumping in completely.
For instance, organizations can replace or augment their rewards programs with crypto, an easy stepping stone to drive engagement. Another example is launching a basic crypto trading service where customers can buy popular coins like USDC, Bitcoin, Ethereum, or Solana, which can help draw in even more customers and increase usage of your solution, all while driving a lucrative revenue stream. A crypto-led growth strategy can help reduce customer acquisition costs and improve your CAC to LTV ratio.
Crypto is quietly changing the future of finance, in the same way that the Internet and Smartphones drove a completely new type of connectivity and economy. By embedding a crypto service into your products and leveraging Cybrid's platform, you can see higher engagement in your platforms and rapid customer acquisition, leading to many up-sell and cross-sell opportunities. With increasing competition for new customers, embedding crypto can help your organization stand above the crowd.
USDC: A Game Changer for Seamless Transactions
The rise of stablecoins like Circle USDC presents an unprecedented opportunity for payment processors and other companies aiming to harness seamless transactions. As a digital currency pegged to the US Dollar, USDC offers the advantages of cryptocurrency, such as fast, secure, and borderless transfers, while mitigating the volatility associated with other digital assets. By integrating USDC into their payment systems, businesses can facilitate low-cost, near-instant global transactions, making it easier to cater to international customers and expand their market reach. Furthermore, with Cybrid's platform support for Circle USDC, companies can access a comprehensive suite of tools and services to confidently incorporate this game-changing stablecoin into their financial solutions, creating a new era of frictionless commerce.
In conclusion, cryptocurrency is changing the game in finance, and embedding crypto into your products with the support of Cybrid can drive significant growth in your business. By focusing on embedded crypto and finance use cases, you can attract new customers, retain existing ones, and increase user engagement and revenue. The time to incorporate crypto into your company strategy is now, and you might just be surprised at how fast the crypto market is evolving and what that could mean for your business in 2023.
Lee Cocking, Head of Product @ Cybrid
