Improving customer experience, growing customer base and the desire to see their brands labeled as “cutting edge” are the primary reasons making retailers commit to adopting cryptos.
Most Retailers Setting Up Infrastructure to Support Stablecoins, Cryptos
75% of the retailers in the United States plan to start accepting stablecoins or crypto payments in the next two years, according to a new survey done and published by Deloitte.
The study also established that over 50% of large retailers with revenues of more than USD500 million are using about USD1 million to design the required infrastructure for supporting crypto payments.
This information was revealed on Wednesday, 8th May 2022, in a Deloitte’s report titled “Merchants Getting Ready for Crypto,” which was done in collaboration with PayPal. The survey polled 2,000 senior executives in the U.S. retail organizations between 3rd and 16th December 2021, when the crypto prices were still pretty high. However, the results are only getting released now, about six months later.
The study population included executives from all sectors, including digital goods, cosmetics, fashion, food & beverages, hospitality, and transport sector.
Small to medium-sized firms are also not left behind in the quest to join the crypto-payment system. 73% of small-to-medium retailers with USD10-100 million in revenue are committing between USD 100k and USD1 million to support crypto-payment infrastructure.
Deloitte indicated that the spending will not stop there and is only expected to go up. 60% of the retailers indicated that they target budgets of over USD500,000 to support crypto payments in the entire 2022.
Consumers are Pushing for Crypto Payments
The primary driver for crypto adoption is consumer interest. 64% of the merchants indicated that their customers had expressed the desire to use cryptos for making payments. About 83% of retailers in the United States expect the interest from investors to shoot up in 2022.
Close to 50% of retailers expect adding cryptos into their payment options to improve their customer experience. Almost the same number is of the view that their customer base will increase. Finally, 40% hope that the brand will be considered cutting edge/ technically advanced for adopting cryptos.
Retailers are Optimistic about Using Cryptos
Of the retailers that have already adopted crypto payments, 93% of them have reported a positive impact in their client metrics.
Challenges noted by merchants include security related to processing payments (43%), volatility (36%), volatility (37%), and limited resources (30%).
The complexity related to integrating crypto payments into the traditional systems was the biggest challenge, according to 45% of the surveyed retailers.
According to Deloitte, more education on cryptos would come in handy in enhancing clarity for regulators and allow greater adoption by different companies.