In recent months, businesses all around the world have begun to integrate Bitcoin payments into their systems. As a result, more payment options will be available, and payment challenges will be reduced, particularly abroad.
DraftKings is one of many institutional brands experimenting with blockchain, cryptocurrency, and non-fungible tokens. DraftKings, a popular sports betting and fantasy sports company, has entered the cryptocurrency market, first with NFTs and then with crypto-payments.
The acceptance Bitcoin or any other altcoin has received over the past few years is remarkable. Bitcoin has the potential to disrupt existing traditional payment networks, according to executives at payments startup Block (SQ). Especially with the rapid usage of the Lightning Network.
DraftKings and the crypto-space
DraftKings, a publicly-listed fantasy sports and sports betting company, has gone all-in on crypto. Particularly NFTs over the last year.
DraftKings introduced an NFT marketplace in July that is the only location where NFTs from Tom Brady’s platform Autograph can be found. A CryptoPunk NFT was also given away as a winner in a fantasy game, and the company’s three co-founders also wore CryptoPunk T-shirts to ring the Nasdaq’s opening bell in June.
Is it possible that adopting cryptocurrency as payment for fantasy sports and betting will be next on the agenda? It’s very plausible, according to DraftKings CEO Jason Robins. Less than a year after launching the NFT marketplace, DraftKings is ready to provide a Bitcoin betting and payment option. With this new feature, users will be able to wager on games using Bitcoins. They will also be able to make payments on the app using Bitcoins.
This won’t be an easy trip, as Robins is well aware of the impending regulatory obstacles. He believes that regulatory difficulties will make things more difficult for them. Furthermore, while numerous jurisdictions in the United States regulate, legalize, and accept sports betting, only a handful of them allow cryptocurrency as a form of payment.
“There are protections that people don’t necessarily have in the crypto space that we think is important. We feel like, to introduce something like that to our platform, we need to go a little bit beyond maybe where some others in the market have gone because there’s an expectation from our customer that we do so.”
The current status of crypto, according to Robins, is very similar to the early Internet’s. This was distinguished in part by rampant scams and complex interfaces that intimidated non-technical users.
Growing acceptance of crypto as payments
SMBs in several different nations are attempting to gain familiarity with the concept of digital currency. SMBs in nine markets — Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates, and the United States – will be experimenting with crypto for payment acceptance in 2022.
According to research done by card company VISA, 24% (540) of SMBs want to accept digital currencies like the cryptocurrency Bitcoin.
Furthermore, according to the Visa Global Back to Business Study – 2022 SMB Outlook, 59% of small firms expect to use digital payments within the next two years or are already cashless.