75% of merchants plan to accept crypto payments in 2 years

From Starbucks to Lamborghinis, consumers are using cryptocurrency to pay for a variety of goods — and retailers are taking notice.

Nearly 75% of merchants plan to accept either cryptocurrency or stablecoin payments in the next two years, according to a survey conducted by Deloitte in June titled “Merchants getting ready for crypto.”

Deloitte polled a sample of 2,000 retail executives representing a range of sub-sectors, including cosmetics, electronics, fashion, transport, food and drink.

While digital currencies like Bitcoin are usually only as valuable as their users believe them to be, a stablecoin is a type of cryptocurrency that derives its value from an underlying asset. Stablecoins are often linked to currencies such as the US dollar or a commodity such as gold.

Although cryptocurrency payments are relatively new now, 83% of retailers expect consumer interest in digital currencies to increase over the next year, and just over half of them have invested over $1 million in enabling digital payments, according to the survey.

For consumers, that means you’ll soon be able to buy clothes, drinks, beauty products and more with crypto.

Even if merchants plan to accept digital currency as payments, that doesn’t mean they necessarily plan to hold the virtual assets.

Just over 50% of respondents plan to have third-party payment processors convert digital currency into fiat, which is money established as legal tender by a government, such as US dollars, British pounds and euros. This means that the merchants do not plan to actually own the cryptocurrency used for payment.

Given the unpredictability of the crypto market, using this strategy is considered to be less risky for traders than holding the crypto itself. This approach also makes it faster and easier for merchants to enable digital currency payments, Deloitte reports.

Crypto-curious merchants realize that there are a number of challenges to overcome to enable digital currency payments. Almost 90% cited the complexity of making their existing financial infrastructure compatible with different digital currencies as their biggest challenge.

In addition, the security of payment platforms topped the list of barriers to adoption, the survey revealed, followed by concerns about the changing regulatory landscape and the volatility of the digital currency market.

More than half of the traders agreed that certain regulations regarding cryptocurrency need to be adopted, including national guidance around holding digital assets, clarity on the tax implications of using digital currencies and the ability to hold digital currencies in a bank account.

Despite their concerns, retailers remain optimistic about the benefits of enabling cryptocurrency payments. Almost half of retailers believe this move will improve the customer experience and increase their customer base.

“We expect that further partnerships with regulated and established institutions in the industry will help deliver the benefits of digital currencies (eg convenience and support) and will continue to build the necessary foundation of trust,” the report concludes.

While the ability to pay with crypto may be good news for some crypto users, it’s still important to remember that these assets can be highly volatile, and experts generally recommend only investing as much money as you’re willing to lose.

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