Global electronics and hardware distributor Avnet has announced it is now accepting cryptocurrency payments. The company is the latest significant merchant to open up to cryptocurrencies.
The Fortune 500 company, which supplies components across the world, said it would now be accepting cryptocurrency payments in bitcoin and bitcoin cash. The development follows a partnership with crypto payment services firm BitPay.
BitPay allows merchants to accept payments in cryptocurrencies and verifies the transaction. It then pays the merchant directly in their crypto or fiat currency of choice. An efficient mechanism is thus provided for merchants to accept payments in digital currencies.
The decision to partner with bitcoin and bitcoin cash reflects the biggest global cryptocurrency and the payment-specific BCH, renowned for faster processing times and lower transaction costs.
Vice president of demand creation Sunny Trinh said the partnership with BitPay would enable Avnet to better serve their customers.
“We’re working with BitPay to facilitate secure blockchain payments for all types of customers so they can focus on developing their products, not how to pay for them.”
The firm confirmed it had already seen several substantial transactions paid for in crypto. This includes “several multi-million dollar” deals, since onboarding the new payment methods.
With the news, Avnet becomes the third largest tech company in America to support payments in crypto. This reflects the current increasing demand from both merchants and consumers for crypto payment services.
Sonny Singh, chief commercial officer at BitPay, said onboarding crypto payments would allow customers to take advantage of the benefits of digital currency.
“Not only is paying with bitcoin easier and faster than with credit cards and bank wires, it is less expensive and acceptance of it is growing.”
BitPay is also working on the development of a hardware crypto wallet. This constitutes part of a project to build a highly secure storage solution for crypto assets.
The news follows on from an announcement that BitPay had processed over $1 billion in crypto payments in 2018. Consequently, it has now surpassed that level for a second consecutive year.
Crypto payments are becoming an increasingly popular choice for both business and retail consumers. Therefore, it is likely the move will help introduce more payees to the benefits of cryptocurrencies for payments.