Cryptocurrencies are gradually gaining popularity and increasing acceptance in countries. A recent Deloitte survey found that most US merchants prioritize cryptocurrencies as a payment method.
Cryptocurrency adoption survey conducted by Deloitte
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According to the survey, the digital currency has entered the mainstream. Globally 220 million people use cryptocurrency now, and customers are paying for everything with it, from travel to sports tickets to mobile phone services. A radical shift has occurred in less than a decade, with once-wary customers increasingly viewing digital currency through an optimistic lens. The digital currency ecosystem is maturing, and the increased utility and accessibility continually fuel the industry’s growth.
Cryptos and stablecoins welcomed
There is a significant distinction between these two forms of digital currency. Cryptocurrencies are digital assets developed and maintained on decentralized blockchains that can be used as a medium of exchange. In contrast, stablecoins are one type of asset-backed cryptocurrency whose value is typically pegged to the value of an underlying asset (e.g., US dollar or other currency).
Since the birth of Bitcoin has rapidly pushed the cryptocurrency industry’s development. Add to that the huge impact of covid-19, which has increased many new entrants into this field. According to the survey below, the current interest of customers in cryptocurrency is:
Merchants ready for digital currencies
Survey respondents are very optimistic about digital currencies in the consumer market, reporting broad agreement that accepting digital currency payments is already a point of differentiation and is expected to see wide near-term adoption.
Overall, merchants broadly agree that accepting organizations of digital currencies have a competitive advantage in the market (87%). An overwhelming majority of those who currently accept cryptocurrency as a payment instrument (93%) have already seen a positive impact on their business’s customer metrics, such as customer base growth and brand perception. They expect this to continue next year. While it may be expected that optimism would not be as strong among
small and midsized consumer merchants, 5 the majority
of SMB payments hope the adoption of digital currency to have a positive impact on their organizations.
Retailers hold an increasingly optimistic view of digital currency as a form of payment and quickly recognize this as a business imperative. Current spending is still on the smaller side but growing significantly. Not surprisingly, the larger companies are more likely to be making significant investments in their digital currency adoption plans. Over half (54%) of large retailers (with revenues of $500 million and up) have invested more than $1 million in enabling digital currency payments, while only 6% of small retailers (with revenues of under $10 million) did so.
Integrating digital currencies into the finance function increases value for organizations
Merchants are driven to support digital currency development plans with two patterns:
The first is belief in the future adoption of digital currencies. The more respondents agreed that their organization anticipates digital currency will be ubiquitous, the more likely they are to have invested heavily in enabling infrastructure (over $1 million).
Similarly, those who expect customer interest to increase the most over the next 12 months are more likely to be investing heavily.
Organizations’ preferred approach
Organizations are mainly partnering with third-party payment processors to enable digital currency payments. There appears to be no correlation between their motivation for adoption or their level of investment and how they are building out their digital currency capabilities.
Merchants recognize some challenges when considering the enablement of digital currency payments. Among them, they view the complexity of integration as the most significant challenge.
Eighty-nine percent of respondents selected at least one of
the two options alluding to integration complexity: integration with existing financial infrastructure and across various digital currencies. These are consistently seen across companies, regardless of revenue size.
Merchants are listening to their customers and believe that many currently have a significant interest in using digital currencies for payments. The majority of merchants believe customer interest will increase over the next year, and nearly 75% reported plans to accept stablecoin payme
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