Faster transactions, reduced speed, and more consumer choice imply that retailers might, with time, opt for crypto payments.
Since 2008 when Bitcoin’s White Paper was released by Satoshi Nakamoto, there is no blockchain platform that has achieved mass impact in offering the value proposition of an alternative method of payments for daily experience to the average customer.
Some steps have been made, with Microsoft, Starbucks, and Tesla, indicating they are now supporting cryptos from 2021. More retailers have expressed their interest in cryptos because they are faster, and their transactions safer. Again, the cryptos would add to their basket of customer choices. For example, AXA Insurance started accepting cryptos after learning that about 1/3 of respondents in its survey were for crypto investments.
Blockchain Market to Grow Steadily, Expected to Hit USD 4.6 Billion By 2028
The retail blockchain market size is predicted to grow and reach USD 4.6 billion in 2028 as industry experts now see more value and move in to meet clients’ demand. It is not just the large companies that are driving growth. Small and medium enterprises have seen 75% growth in clients who are requesting to make payments in cryptos.
In the United States, there is a large number of retailers, who contribute 43.5% of the nation’s GDP and create 2/3 of new jobs. However, the fact that most of them are yet to hold ample liquidity in expenses and are looking forward to seeking some financial aid is making the perfect case for cryptos.
The rising level of inflation is also making small enterprises unable to make significant savings by simply holding dollars. This is why they are moving towards cryptos, such as Bitcoin (BTC), which are pretty scarce and can be stored better. The value of BTC grows faster compared to inflation, making it an attractive alternative vehicle for savings.
Rapidly Changing Demographics, Demand to Drive Adoption
In 2021, cryptos shifted from being a niche consideration into a mainstream digital currency and are showing no sign of slowing down. The rapid adoption is being pushed by cultural shifts. With the older generation retiring, the newer cohort is coming with new buying preferences that are expected to change the future of retail and finance. Those born between 1981 and 1996 are the biggest consumers of digital assets, with about 45% indicating that they own cryptos in 2022.
Retail adoption of cryptos is to be pushed by consumer demand, but retailers will come in handy to shape the payment models. It will be pretty like the way social media managers helped shape how people perceive and interact with brands online.
Initial retail crypto adopters are shaping the standards and also improving the best practices. Already, crypto is foreseeing the retail payment’s future by refocusing stores through the development of fully immersive clients’ journeys. In some online stores, cryptos are already being accepted. Next will be the retailers to redesign the checkout experiences with customers in mind.