August 02, 2022
Nearly 75% of retailers plan to accept payments in cryptocurrency or stablecoins within the next two years, according to Deloitte’s “Merchants Getting Ready For Crypto.” study.
The survey of 2,000 US retail executives was conducted in the first two weeks of December 2021, just before digital currency valuations crashed.
According BarronsBitcoin, the dominant token, continues to trade at around a third of its all-time high in November 2021, with the market capitalization of the overall crypto space also dropping.
Deloitte’s research, conducted in conjunction with PayPal, found that retailers were optimistic about the potential of the digital asset:
- Eighty-five percent expect digital currency payments to be ubiquitous in their respective industries within five years, with 54% having invested more than $1 million to enable digital currency payments.
- Eighty-seven percent agreed that organizations accepting digital currencies have a competitive advantage. Value should be derived in three ways: improved customer experience, cited by 48%; customer growth, 46%; and being perceived as avant-garde, 40%.
- Eighty-six percent see a significant benefit to their finances and cash management from accepting digital currency payments. Value is perceived as allowing immediate access to funds, cited by 40%; leveraging blockchain-based innovations in decentralized digital finance, 39%; and enable internal management of the revenue/treasury/finance department cycle, 39%.
Survey participants felt the top barriers to adoption were payment platform security, cited by 43%; followed by changes in the regulatory landscape, 37%; and instability in the digital currency market, 36%.
The Crypto crash was dramatized by the collapses of stablecoin Terra, crypto hedge fund Three Arrows Capital and numerous crypto lending platforms, although risky assets across the board, including tech stocks, took a beating. inside the broader bear market.
Gucci, Balenciaga and Tag Heuer are among those joining this year Whole Foods, Nordstrom, PacSun and Crate & Barrel accept cryptocurrencies. American Eagle Outfitters caught the eye for deciding not to accept crypto payments during the recent launch of an NFT clothing store. Craig Brommers, Chief Marketing Officer of American Eagle, said at CommericeNext 2022, “When we thought about our 15-25 year old client, the reality was that they weren’t ready for cryptocurrency.”
DISCUSSION QUESTIONS: Have you become more or less confident about the value of cryptocurrencies as a retail payment method since the start of the year? Have the barriers to adoption changed?
“Accepting cryptocurrency is a great business plan as long as you treat it like you would any foreign currency.”