Posted 3 years ago | by Ben Armstrong
Retailers Open to Adopt Cryptos
Crypto adoption among a wider group of users may be positive for their prices in the medium-term. Earlier in October Crypto.com made their payment gateway available for WooCommerce, which is an extremely popular way to buy good and services online. Latest News about Cryptocurrency only on Bitboy Crypto.
WooCommerce isn't the only merchant who is opening up to cryptocurency as a payment option. IKEA, Overstock.com, and 7-11 in the Philippines have all started accepting tokens as a payment solution for their customers.
Libra May be the Gateway Project for Crypto Adoption
Eric Anziani, the COO of Crypto.com, commented that Libra may not be as popular as Facebook had hoped, but it has made cryptos far more palatable to a wider demographic.
He told media that:
“It (Libra) was a high-profile announcement that, along with ()] partnership with retailers like Lyft and Uber, drew the attention of retailers who were “not sure” previously...While Libra has faced significant concerns from regulators, it has helped draw more attention to crypto as a viable payments alternative for consumers and e-commerce merchants.”
There is no doubt that younger people are looking for alternatives to the established financial system.
According to Anziani:
“There are now roughly 65 million crypto wallets and Millennials have expressed an appetite for alternative banking. Thus, retailers are likely facing a pull factor from customers.”
With the advent of crypto exchanges that allow merchants to swap crypto for fiat, and hedging options for skittish retailers who worry about the price fluctuations in the token markets, many of the impediments to using cryptos commercially have fallen away.
New Ways to Stay Profitable
Ryan Taylor, the CEO of Dash Core Group, the company that created DASH, says that:
“Digital currencies solve many fundamental issues for retailers, which typically operate on razor-thin margins.”
Cryptos get rid of things like chargebacks, which cost retailers millions of dollars every year. They also help to knock-down the risk of fraud, as once a crypto transaction is completed, there is no way for a bad actor to end up with their money back, and the goods they scammed from a legit retailer.
While the market for cryptos has evolved a lot in the last few years, there is still a lot of room for further expansion.
Green Field Opportunity
In research paper published earlier this year by the De Nederlandsche Bank (Dutch Central Bank), Nicole Jonker writes that:
“Acceptance of crypto-payments (by online retailers) is modest...The potential of cryptos to drastically change the existing retail payment ecosystem by making financial institutions superfluous or even disrupt the monetary system seems small.”
At the time the report was written just 2% of the Dutch retailers polled by the Central Bank accepted cryptos as payment. The other side of the coin is that 98% of the retailers in the Netherlands could start accepting tokens, much in the same way they likely accept Visa and MasterCard (with no risk of chargebacks!).