While many cryptocurrency enthusiasts remain optimistic about the digital currency space, it’s undeniable that things have been rough of late. From the Bitcoin Cash fork to concerns over looming regulatory threats – and everything in between – it’s been a turbulent time for crypto.
The arrival of blockchain solutions like Tron and its virtual store initiative will also likely accelerate adoption shortly. Though, what role can retail stores play in accelerating this process? By adding convenience to their services, consumers will use cryptos as freely as cash or credit cards.
In the same way, a company like Starbucks accelerated the adoption of digital mobile payments by integrating them seamlessly into their customers’ everyday routine — so retailers can accelerate cryptocurrency adoption.
Big Companies Who Started Accepting Crypto Payments
The number of companies accepting cryptocurrency payments is constantly growing, with thousands of firms taking Bitcoin alone. Some household names include Microsoft, PayPal, Expedia, DISH Networks, Shopify, Newegg, and thousands more.
Though to date, its retail stores have had the most impact on accelerating cryptocurrency adoption. By allowing customers to pay with crypto at the point of sale, these retailers have taken a step beyond accepting cryptocurrency in their payment mechanisms.
They have seamlessly integrated crypto payments into the retail experience. In doing so, these retailers have brought cryptocurrencies a step closer to mainstream adoption.
Why Are SMBs Still Behind?
Why are SMBs in the best position to reap the rewards of a blockchain-driven customer experience, still far behind their larger rivals in bringing innovative new payment methods to the table? The critical issue here is simply awareness. While larger companies can invest more heavily in marketing campaigns that advertise their new crypto payment options, SMBs are severely limited.
However, this situation isn’t likely to persist for much longer. Several blockchain-based services are already looking to close the awareness gap between SMBs and the adoption of crypto payments. As a result, they’re going to be left behind when it comes to crypto adoption.
Why Crypto Enthusiasts Prefer Holding and Trading Instead of Paying with Crypto
The fact that users primarily use cryptocurrencies as a store of value rather than a payment method is no secret. While it makes sense for investors to focus on holding and trading on crypto platforms like Bitcoin Bank, this has a knock-on effect on the adoption rate.
With many cryptocurrency users prioritizing the holding of their coins over the payment of goods and services, retailers who accept crypto are getting left with little choice but to convert the payments back into fiat. This action, in turn, creates a disconnect between blockchain-driven payment methods and the fiat-based economy.
Suppose cryptocurrency ever reaches the level of adoption that advocates promised for many years. In that case, it needs to be useable as a payment method, as many people use it as a store of value.
How Will Metaverse and Web3 Transform How We Pay for Goods and Services?
With Metaverse and Web3 paving the way for retailers to accept cryptocurrencies as payment, the link between the payment solution and fiat money broke. When a retailer receives a cryptocurrency payment, it immediately exchanges the coins for fiat.
However, when a retailer accepts a cryptocurrency payment deposited on a blockchain-based wallet, the transaction is recorded on the blockchain. The retailer does not need to exchange their coins for fiat. In this scenario, people use cryptocurrencies as a method of payment.
As a result, retailers do not need to convert their crypto payments into fiat, creating a seamless customer experience. Once the adoption has reached a critical mass, retailers will have no choice but to accept cryptocurrencies as payment methods.
Retailers have the power to accelerate the rate of cryptocurrency adoption significantly. All that’s required is for them to accept cryptocurrencies as payment for their goods and services. However, why would retailers leap from accepting crypto as a payment method to taking it as a form of payment in its own right?
Well, they don’t have to make any changes to their internal systems: they can accept crypto payments on the same shopping portals they use to process credit card payments today. Additionally, in the long run, retailers will benefit just as much, if not more, from accepting cryptocurrencies as payment.
In the best-case scenario, retailers will be responsible for managing fewer intermediaries when processing their sales. If more retailers accept cryptocurrencies as payment, it’ll be easier for everyone to use crypto coins.
It’ll be more effortless to buy things with them and more straightforward to sell stuff for them. In other words, cryptocurrencies will be better money if more places accept them.