The Future of Cryptocurrency in the Retail Industry
The future of cryptocurrency in the retail industry appears promising, with an increasing number of US brands and retailers embracing crypto as a form of payment. As digital currencies gain traction among consumers, particularly millennials and Gen Zers, businesses are recognizing the potential benefits of accepting crypto payments. Some notable companies that have recently started accepting cryptocurrencies include Gucci, Balenciaga, Alo Yoga, and Tag Heuer.
According to a survey conducted by PYMNT and BitPay, nearly 40% of millennials and Gen Zers who own cryptocurrency plan to use it for making payments. Another study by Deloitte revealed that around 85% of surveyed merchants expect digital currency payments to become ubiquitous among suppliers in their industry within five years. Furthermore, more than 85% of organizations are giving high or very high priority to enabling cryptocurrency payments.
Shoppers’ attitudes towards using cryptocurrency as a form of payment are also evolving. A Smarty survey found that over a third of consumers would like to have the option to use cryptocurrency when shopping online. The survey participants expressed interest in using crypto for purchasing electronics, groceries, clothing, travel, music, games, and candy.
Additionally, a Gartner’s Software Advice study discovered that more than half of the respondents plan to spend more using crypto in the next year, with only 29% being deterred by its value fluctuations.
Despite the growing interest in crypto payments, some retailers remain cautious. For instance, American Eagle Outfitters decided not to accept cryptocurrency as a form of payment when developing an NFT collection last year. However, other retailers like Pacsun have embraced crypto payments, citing their tech-savvy Gen Z customer base as a driving factor.
As the retail industry continues to adapt to the changing landscape of digital currencies, it is essential for businesses to consider their target audience and weigh the potential benefits and risks associated with accepting crypto payments. With the increasing adoption of cryptocurrencies and the growing interest among consumers, it is likely that the role of crypto in retail transactions will continue to expand and evolve in the coming years.
I have 15 years of experience in the retail industry including expertise in marketing, operations, merchandising, buying, shopping and technology. I am a speaker, consultant and former senior managing director of The School of Retailing, University of Alberta. My education includes a Bachelor of Commerce Degree from The University of Alberta in Marketing, Certificate in Real Estate and a Diploma in Fashion Merchandising and Buying from LasSalle College, a Canadian private school founded in 1959 by fashion designer Jean-Paul Morin.