Three-quarters of merchants intend to accept crypto payments in two years
Three-quarters of merchants intend to accept crypto payments in two years
Deloitte surveyed 2,000 retail executives, including those from the cosmetics, electronics, fashion, transportation, food and beverage industries about their plans to accept payments in Bitcoin, Ethereum and other cryptos.
Crypto exchanges have reported a significant drop in trading volume as the current downturn in the crypto market dragged the prices of Bitcoin (BTC), Ethereum (ETH) and other digital currencies to just a fraction of their previous record highs last year. However, the downturn did not dampen the appetite of retailers as a quarter of stores plan to accept crypto payments in two years.
In a poll conducted by Deloitte in June titled “Merchants getting ready for crypto,” about 75 percent of merchants intend to accept cryptocurrency or stablecoin payments in the next two years, CNBC reported. The survey involved 2,000 senior retail executives, including those from the cosmetics, electronics, fashion, transportation, food and beverage industries.
While the use of Bitcoin (BTC), Ether (ETH) and other crypto is fairly new, 83 percent of retailers expect consumer interest in digital currencies to increase over the next year. To prepare for this projected increase in the use of crypto for payments, more than half of the survey participants have already invested over $1 million to enable their retail outlets to accept digital currency payment.
Even if merchants intend to accept crypto as payment, it does not mean that they also plan to keep Bitcoin, Ether and other digital currency they receive from customers. More than half plan to use third-party payment processors to convert digital currency to fiat such as US dollars, British pounds and euros.
Using third-party payment processors to automatically convert crypto payments to fiat is one way to manage risks associated with the volatility of crypto prices. In addition, the payment setup also makes it faster and easier for merchants to accept digital currencies, according to Deloitte.
Merchants recognize that there are barriers to enabling crypto payments. Ninety percent are concerned about the complexity involved in making their existing payment infrastructure compatible with crypto, while others said regulatory uncertainty is a concern, and the volatility of the crypto market could be a problem.
However, most of the survey traders are optimistic about the future of crypto payments. Almost half of the respondents believe that accepting digital currencies can help improve the customer experience and increase the 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,” Deloitte wrote.
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