A survey conducted by Deloitte found that more than 85% of US merchants view enabling crypto payments as a high priority, with almost three-quarters of respondents planning to accept either cryptocurrency or stablecoin payments within the next 24 months.
Although crypto payments are not yet an everyday occurrence for most customers, interest is significant, especially among younger generations, Deloitte said, calling this a sign to retailers that those failing to embrace customer demand risk of losing out on profits.
Spending on crypto infrastructure is expected to increase, as more than 60% of respondents said they expect to have budgets of more than $500,000 to enable digital currency payments in the next 12 months.
Enabling crypto payments does not mean companies will be holding digital assets. More than half (52%) plan to have payment processors convert crypto into fiat currency, and companies partnering with third-party crypto payment processors are particularly likely to do so (61%). This offers easier and faster time to market and is considered lower risk than alternatives, the study said.
Still, respondents cited multiple barriers to adoption of crypto payments, with customer security of the payment platforms topping the list (43%), followed by the changing regulatory landscape (37%) and instability of the digital currency market (36%).
The study, titled “Merchants Getting Ready for Crypto,” conducted in collaboration with PayPal, was published last week and conducted from December 3-16, polling 2,000 senior executives from US retail companies.
Respondents reported at least a general knowledge of cryptocurrency and stablecoins, and most were primary decision-makers regarding whether their companies would accept crypto payments.
Here are more ways you can benefit from accepting cryptocurrencies as payment:
- It saves you money – It is estimated that US businesses have handed over more than $78 billion in fees tied to credit and debit card processing. Cryptocurrencies don’t have such fees as they are “decentralized” and don’t have a bank to validate each transaction.
- Transactions are quick – The beauty of cryptocurrency transactions is that they occur in real time or can take but a few minutes. No one likes to wait for their money. With traditional payment methods, such as a bank transfer, you are looking at having to wait for several days for the funds to settle. Plus, by accepting cryptocurrencies, your business cash flow will remain uninterrupted.
- Available worldwide – Cryptocurrency is an international currency because it is not limited to location. There are no exchange rates or costly foreign transaction fees. Merchants are able to accept cryptocurrency payments from anywhere in the world.
- Prevent chargebacks and fraud – The way the system is set up, it is impossible for a customer to spend more than they have. It can almost be compared to the likes of using cash. When using cryptocurrencies, both participants have to approve every transaction. All transactions are final and irreversible since transactions are attached to the blockchain through mining.
- Get new customers – Many new users are flocking to use cryptocurrencies. As more people are learning about it and making it their preferred form of payment, your business will really stand out and draw new customers. Again, your business must be recognized as a business that embraces innovation which can elevate you as a preferred merchant. As a rule, the more payment options you offer your customers, the better it is for your business.
- Lower fees: Another plus to offering cryptocurrency as a form of payment are the lower fees that are tied to each transaction. Of course the range of fees vary from each provider. However, they are still considerably less than credit card providers.
- Paper currency will become obsolete: As mentioned previously, cryptocurrencies continue to grow in popularity and usage. Of course, as a small business, there is much to learn. However, getting involved in accepting cryptocurrencies sooner rather than later will greatly benefit your business. The global trend seems to be pointing towards a more cashless society, therefore, it is best to become an “early-adopter”.
- Eliminate shopping cart abandonment: The most common reason consumers have for abandoning a merchant’s online shopping cart is not having their preferred method of payment available. This should not happen. By offering cryptocurrency as another payment option, you will see less if not a complete elimination of abandoned carts. Instead, you will experience a boost in conversions and transactions.