Aug 02, 2022
Nearly 75 percent of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years, according to Deloitte’s “Merchants Getting Ready For Crypto” study.
The survey of 2,000 U.S. retail executives was taken in the first two weeks of December 2021, just before valuations on digital currencies collapsed.
According to Barron’s, Bitcoin, the dominant token, continues to trade at around one-third of its November 2021 all-time high, with the market capitalization of the overall crypto space also tumbling.
Deloitte’s study, done in collaboration with PayPal, found retailers bullish on the digital asset’s potential:
- Eighty-five percent anticipated that digital currency payments will be ubiquitous in their respective industries within five years, with 54 percent having invested more than $1 million towards enabling digital currency payments.
- Eighty-seven percent agreed that organizations accepting digital currencies have a competitive advantage. Three ways value is expected to be derived: improved customer experience, cited by 48 percent; increased customer base, 46 percent; and being perceived as cutting edge, 40 percent.
- Eighty-six percent see a significant benefit to their finance and cash management from accepting digital currency payments. Value is seen in enabling immediate access to funds, cited by 40 percent; taking advantage of blockchain-based innovations in decentralized digital finance, 39 percent; and allowing in-house management of the revenue cycle/treasury/finance department, 39 percent.
Survey participants saw the top barriers to adoption to be security of the payment platforms, cited by 43 percent; followed by the changing regulatory landscape, 37 percent; and the instability of the digital currency market, 36 percent.
Crypto’s crash has been dramatized by the meltdowns of stablecoin Terra, crypto hedge fund Three Arrows Capital and numerous crypto lending platforms, although risky assets overall, including tech stocks, have been battered inside the broader bear market.
Gucci, Balenciaga and Tag Heuer are among those this year joining Whole Foods, Nordstrom, PacSun and Crate & Barrel in accepting cryptocurrencies. American Eagle Outfitters drew attention for deciding not to accept crypto payments while recently launching an NFT apparel shop. Craig Brommers, American Eagle’s chief marketing officer, said at CommericeNext 2022, “When we thought about our 15- to 25-year-old customer, the reality is they were not ready for cryptocurrency.”
DISCUSSION QUESTIONS: Have you become any more or less confident about the value of cryptocurrencies as a form of retail payment since the start of the year? Have the barriers to adoption changed?
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Source: https://retailwire.com/discussion/should-the-cryptocurrency-crash-scare-retailers/