From the outset, Bitcoin was designed as a means of payment within a peer-to-peer, decentralized, open, transparent, and tamper-proof ecosystem. This enabled value transactions to occur outside the traditional financial system, bypassing the need for intermediaries such as banks to verify transactions. Consequently, anyone could send and receive funds anywhere.

Today, cryptocurrencies are embracing their roots as a viable payment option once again.  A report published by Spherical Insights in October last year revealed that in 2021, the global market value of cryptocurrency payment applications reached $545 million. This figure is projected to grow to $2.17 billion by 2030, with a compound annual growth rate (CAGR) of 16.6%.

The adoption of cryptocurrency payments has been steadily increasing. CoinGate's annual report indicates that merchants supported by CoinGate received close to 100,000 payments in 2022, marking a 63% increase from the previous year. Out of the 70+ cryptocurrencies accepted by CoinGate merchants, Bitcoin dominates with 48% of the transaction share. Meanwhile, the stablecoin USDT has experienced significant growth, with its market share expanding from 2.3% in 2021 to 14.8%.

Why Pay with Cryptocurrency?

Ethereum founder Vitalik Buterin believes that the advantages of using cryptocurrencies for payments have been underestimated. Cryptocurrencies not only facilitate international transactions with ease but also offer "censorship resistance." 

They aren't just a speculative game for the wealthy; they're providing access to financial services for the unbanked and underbanked populations worldwide. As of 2022, approximately 1.7 billion adults still lack access to bank accounts, with the majority residing in developing countries. The vast population and limited banking services in these regions create opportunities for digital currency payments. Blockchain's distributed ledger technology allows users to conduct financial transactions directly, bypassing cumbersome financial intermediary procedures. Blockchain data analysis company Chainalysis found that Vietnam and Thailand's DeFi usage data in 2021 ranked second only to the United States. Inefficient traditional payment systems and limited financial services make residents more inclined to use cryptocurrencies for micropayment transactions.

Cryptocurrency payments offer significant advantages in protecting user privacy. Transactions are verified using complex encryption algorithms, and users don't need to provide any personal information. Bitcoin exchanges, for example, don't have access to users' personal data. Personal information remains anonymous unless users actively link their accounts to identifiable objects, such as bank cards, making it challenging for regulators to track. When making or receiving Bitcoin payments, users only need to enter the other party's public key to complete the transfer. Transaction records only contain public keys, so neither party nor any third party can obtain the identity information of the transaction participants.

Traditional payment methods often come with high transaction fees, particularly for cross-border or high-value transactions. These transactions typically require multiple intermediaries, such as banks or payment processors, resulting in delays and added costs. Some international money transfer apps charge fees between 10% to 20% per transaction, which can be even more expensive for larger transactions. Cryptocurrency transactions operate on a peer-to-peer model, without the need for intermediaries. These transactions are usually completed within seconds and at a reduced cost, often less than a dollar. Since cryptocurrency transactions can be conducted across borders without currency exchange, this is especially beneficial for international businesses. It simplifies the transaction process and reduces costs associated with foreign exchange.

Cryptocurrency Payments Transforming the Travel Industry

Traditional payment methods have long constrained the travel industry, with challenges such as currency exchange difficulties, unreasonable deductions, lengthy settlement times, and high service fees. Cryptocurrencies offer seamless global payments and have the potential to fundamentally alleviate pain points within the travel industry, particularly in cross-border travel.

For travelers, the most significant advantage of using cryptocurrencies is the elimination of foreign exchange fees. Converting fiat currencies often incur high handling fees, while cryptocurrency payments directly address the issue of currency exchange. Furthermore, cryptocurrencies can help travelers circumvent exchange rate fluctuations, bringing a degree of price stability to countries with unstable currencies.

In 2013, CheapAir became one of the first online travel agencies to accept Bitcoin for flight bookings. Similarly, the travel booking platform Travala now enables users to use over 50 cryptocurrencies to book millions of different travel products.

Airlines and hotels have also joined the trend. In 2014, Latvia's flagship carrier AirBaltic became the world's first airline to accept Bitcoin payments, in partnership with the third-party payment provider BitPay. LOT Polish Airlines and Virgin Galactic followed suit, allowing users to book flights using multiple cryptocurrencies. The hotel industry entered the space later, with the American luxury hotel brand Kessler Collection beginning to accept cryptocurrency reservations through BitPay in 2021. Users can pay with Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE), and four stablecoins.

The growing number of cryptocurrency payment merchants and users is pushing the entire ecosystem toward mainstream adoption, further promoting the development of cryptocurrency payment applications. BeezTrip, an emerging Web3 payment platform, supports the use of stablecoins USDT/USDC for flight bookings. In May, BeezTrip won the Best Web3 Innovation Project Award in the payment category at the first MAPO Seoul Hackathon, jointly hosted by MAP Protocol and Waterdrip Capital. In June, BeezTrip acquired the cross-chain decentralized identity (DID) "BeezTrip.bit," enhancing the credibility of its digital identity and providing increased usability and convenience.

The flight booking process on BeezTrip is straightforward, with no need to create accounts or complete KYC procedures. Users simply search for flights by entering the route and date (the platform currently only supports international direct flights), authorizing their cryptocurrency wallet, and filling in passenger information to confirm the order. BeezTrip supports four wallets: MetaMask, Bitkeep, Trust, and WalletConnect. Except for specific routes from some airlines, most tickets are issued within 5-10 minutes.

While the legal currency online payment system has reached maturity, cryptocurrency payments are still in their nascent stages, primarily limited by credibility and infrastructure development. Beez aims to become a new generation of cryptocurrency payment infrastructure, creating diverse payment scenarios for users worldwide. After launching travel-related services such as flight and hotel booking, Beez Finance, the parent company of BeezTrip, plans to gradually expand its market, enter other payment scenarios like corporate payments, and establish a compliant payment platform and legal consumption channels for crypto-centric entities and individuals. As the richness of the cryptocurrency payment ecosystem grows and the industry matures, Beez will have new avenues for growth.

Cryptocurrency Payments: Not Without Flaws

Of course, all payment methods, whether fiat or cryptocurrency, come with certain risks.

Cryptocurrencies have their own set of challenges, starting with high volatility. The cryptocurrency market is known for its instability, with prices fluctuating wildly and extensively within short periods. Choosing stablecoin payments is a relatively safe solution in this context. Additionally, while cryptocurrency transaction records do not contain identifying information, transaction details (including the public keys of both parties, transaction time, and amount) are available to everyone. As Bitcoin transactions can be tracked on the blockchain, user transaction activity data can be monitored. For instance, some on-chain data analysis companies integrate on-chain data with KYC service metadata to conduct consumer portrait and behavior analysis. Currently, various solutions are attempting to address the privacy concerns of cryptocurrency payments, such as PayNyms, stealth addresses, Whisper addresses, and silent payments.