From luxury vehicles to coffee chains, people use cryptocurrencies to pay for a broad range of goods. Now, about 75% of retailers plan to accept cryptocurrency or stablecoin within the next two years. This news comes from the release of a survey called “Merchants getting ready for crypto,” released by Deloitte.
According to the report, Deloitte’s sample included 2,000 senior executives representing a range of sectors within the retail industry. From food and beverage companies to fashion and cosmetics, many of them have taken notice of how popular crypto is.
While coins like BTC tend to be as valuable as users believe them to be, stablecoins derive their value from an underlying asset. Often, people peg these assets to currencies or a commodity, such as gold.
In some cases, paying with cryptocurrency may seem a bit novel. However, 83% of retailers believe that consumer interest in digital assets is set to grow over the next year. Moreover, half of them have invested upwards of $1 million into enabling crypto payments.
For the average consumer with a crypto wallet, this opens up the possibilities quite a bit.
How Retailers Plan to Execute This
While about 75% of retailers plan to accept cryptocurrency in the next couple of years, how do they plan to do it? Even though they plan to accept cryptocurrency, it doesn’t mean they plan to hold these assets.
According to the report, over 50% of respondents plan to use a third-party payment processor that converts crypto into fiat. For those unfamiliar, fiat is money established as legal tender by a government, for instance, the British pound, euro, or U.S. dollar. That means many retailers do not plan to own the crypto used as payment.
With the unpredictable nature of the crypto market, this strategy means they face much less risk. Additionally, it allows for simpler, faster execution as they roll out their plans to accept digital currency payments.
The Barriers They Face
Retailers curious about crypto know that there are plenty of challenges ahead as they work to enable payments. Almost 90% of respondents referenced the complexity of making their existing infrastructure compatible with crypto.
Moreover, there are concerns about the security of payment platforms as well as potential changes to the regulatory landscape. Lastly, the instability of the market ranked as another concern.
Over half of the respondents agreed that they want to see certain regulations enacted. These include national guidance about holding digital assets, the ability to hold digital currencies in a bank account, and clarity regarding the tax implications of digital currencies.
Optimism About the Future of Crypto Among Retailers
Despite the concerns, about 75% of retailers plan to accept cryptocurrency in the coming years. This means they are optimistic about the benefits of accepting digital payments. According to the survey, about half believe it is a move that will improve the experience of customers and increase their customer base.
“We anticipate that further partnerships with regulated and established institutions in the industry will help deliver the benefits of digital currencies (e.g., convenience and support) and will continue to build the necessary foundation of trust,” the report concludes.
While this plan among retailers is good news for the crypto industry, it’s important to remember the volatility in the market. If you plan to invest, be sure to follow expert recommendations and only invest what you are prepared to lose.