GameStop Jumps Into Crypto, NFTs With Digital Asset Wallet Launch

GameStop

GameStop Corp. on Monday (May 23) unveiled a digital asset wallet that will let gamers and other store, send, receive and use cryptocurrencies and non-fungible tokens (NFTs) on several decentralized apps without leaving their web browsers, according to a company press release.

The GameStop Wallet is a self-custodial ethereum wallet. The wallet extension, which can be downloaded from the Chrome Web Store, will also allow users to make transactions on GameStop’s NFT marketplace, which is expected to launch in the second quarter of the company’s fiscal year.

Related: GameStop Names Former Belk Stores CEO Nir Patel As COO

Last week, GameStop named former Belk CEO Nir Patel as its new chief operating officer, effective May 31. Patel oversaw the growth of Belk’s retail department store chain to more than 300 stores in 16 states. Patel will replace Jenna Owens, former chief operating officer, who left the company in October, seven months after her appointment.

Also read: Boston Consulting Group Sues GameStop Alleging $30M in Unpaid Bills

In March, Boston Consulting Group sued in U.S. District Court in Delaware that GameStop Corp. to recover $30 million in unpaid debt related to its efforts to bring the video game retailer out of a 2019 sales slump. BCG alleged it spent tens of thousands of hours on the project and “overachieved” by creating more profit opportunities than were initially estimated.

Read next: GameStop Chairman Ryan Cohen’s Tweet Sends Stock Surging

Earlier in March, Chairman Ryan Cohen said he had purchased 100,000 shares of the company’s stock, paying between $96.81 and $108.82 for its shares. Cohen now owns 9.1 million GameStop shares or 11.9% of the company.

Cohen, who co-founded Chewy.com, joined GameStop’s board in January 2021 and became chairman in June.

See also: NFT Weekly: After Stablecoin Collapse, Morgan Stanley Warns NFTs Could Be Next

Morgan Stanley warned investors last week that NFTs could soon follow the collapse that saw so-called stablecoin TerraUSD lose $45 billion in value in the blink of an eye.

The bank found that the high prices of NFTs was attributable mainly to “speculation, with limited real user demand,” that has caused prices on top-selling collectibles including CryptoPunks and Bored Ape Yacht Club to fall. The same thing has been seen in the prices of NFTs providing ownership of virtual plots of land in metaverse projects, the report said.


45% of Non-Recurring Transactions Now Use Instant Payments

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The gig economy and gaming industries have driven a rise in ad hoc transactions, payments made outside of regular invoicing and payroll. Businesses are relying on instant payments to streamline these transactions, which involve contractors, consumers and small businesses.

According to a PYMNTS Intelligence report, “Gigs and Games: How Instant Payments Are Gaining Ground for Ad Hoc Transactions,” a collaboration with Ingo Payments, with increased demand for efficiency and speed, instant payment systems are becoming a preferred solution, though obstacles to wider adoption remain.

Instant Payments Comprise Nearly Half of Ad Hoc Transactions

Instant payments are gaining in popularity for ad hoc transactions, according to the report. With the demand for quicker and more efficient methods of payment, businesses are adopting real-time payment systems to facilitate faster transactions, reduce fraud risk and improve overall financial processes.

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PYMNTS found 45% of all ad hoc payments made in July 2024 were sent via instant methods, a notable increase from 36% earlier in the year. Industries that rely heavily on nonrecurring payments, such as gaming and the gig economy, have seen the most significant uptake.

Larger Enterprises Leading the Shift

Larger companies are leading the adoption of instant payments for ad hoc transactions. Businesses with more than $1 billion in revenue are sending half of their ad hoc payments via instant rails, revealing a preference for speed and efficiency. Smaller companies, however, are lagging in adoption, with those earning between $50 million and $100 million turning to instant methods for just 34% of ad hoc payments. The delay in adoption among smaller enterprises is often linked to the high costs of integrating instant payment systems into their existing processes.

Despite this, the trend toward adopting instant payment methods is gaining momentum across the board. Many large enterprises view instant payments as the future standard for ad hoc transactions, especially in business models that no longer rely on recurring payees, such as contractors or freelance workers. But challenges persist in scaling this technology across industries of all sizes.

Barriers to Broader Instant Payment Adoption

While instant payments offer considerable benefits, particularly in terms of speed, cost savings, and enhanced customer/vendor retention, the report shows businesses face obstacles in fully adopting them. For many enterprises, the cost of integrating real-time payment systems remains the primary barrier. According to the report, 35% of businesses cite integration costs as the biggest obstacle to adopting instant payments for ad hoc transactions.

Additionally, there is a digital divide, with industries like gaming and the gig economy leading the charge in adopting instant payment systems. But two-thirds of small and medium-sized businesses (SMBs), particularly those in industries with less digital momentum, are dealing with the costs and complexities of implementing these systems. Despite these challenges, businesses that do embrace instant payments could gain a competitive edge by securing customer and vendor loyalty, driving down transaction costs, and improving cash flow management.