​How cryptocurrencies will lead retail payments in 2022?

As big names like Starbucks, Tesla and Microsoft begin accepting cryptocurrencies in 2021, more retailers are attracted by cryptocurrencies’ lower fees, faster and more secure transactions, and the ability to expand payment options for customers .

​How cryptocurrencies will lead retail payments in 2022?

The retail blockchain market is expected to reach $4.6 billion by 2028 as more industry professionals see its value and strive to meet customer needs. However, it’s not just large corporations that are driving this growth. There has been a 75% increase in customers and suppliers of SMEs asking to use cryptocurrencies as a payment option.

The vast majority of retailers are small businesses, which contribute 43.5% of U.S. GDP and create two-thirds of new jobs, but have little liquidity in spending. With inflation soaring, small businesses, including retailers, can’t just save by holding dollars, but should look to cryptocurrencies like bitcoin as a scarce asset that can be secured with safety. Bitcoin’s value has grown faster than inflation and is a powerful alternative savings tool, allowing businesses to save enough to deal with major surprises. For small businesses and retailers, it is only from a purely economic perspective that they must accept crypto as an alternative payment method.

changing demographics

Last year, crypto moved from a niche market to the mainstream, with no signs of slowing down. A broader cultural shift has driven cryptocurrency adoption. The buying preferences of this new group will shape the future of retail and finance as seniors retire and younger generations enter the workforce.

Millennials, turning 40, were the hardest hit by the financial crisis of the previous decade, but overall they worked hard and invested savvyly to close the gap between rich and poor created by disadvantaged status. People born between 1981 and 1996 are the group with the largest number of digital asset investors, with 45% of this group owning cryptocurrencies by 2022, compared to about 30% a year earlier.

Gen Z is not far behind. The surge in NFTs is an example of a younger generation of tech-born investors investing in the digital space, who are looking for more ways to use their wealth and showcase their assets.

​How cryptocurrencies will lead retail payments in 2022?

Customer-Centric Experience

All retailers want to keep their customers loyal. One way to do this is through a variety of payment options to suit customer preferences. Accepting only cash in 2022 feels like a deliberate retro cry.

Offering crypto payments is one way to improve the customer experience. This is especially important for 93% of cryptocurrency owners who said they would consider using cryptocurrency for purchases (57% have already purchased cryptocurrency at least once in the last year).

Secure in-store networks, mobile payments and biometric authentication could eliminate the need for traditional checkout entirely. Payment requests to a customer’s mobile device make crypto payments as easy as using Visa, PayPal, or any preferred digital payment option.

The store of the future will be designed around these types of mobile, mobile-first, and customer-centric experiences, so it’s no surprise that nearly three-quarters of businesses see accepting new payment methods as the foundation of their growth.

risk

Offering crypto payments has both advantages and disadvantages for merchants. Accepting cryptocurrencies takes some effort, whether it’s by modifying retailers’ existing point-of-sale (POS) terminals or redesigning their workplaces.

Likewise, the volatility of cryptocurrencies makes them a risk, and they can be subject to complex tax rules and regulations that often force retailers to be more specific in terms and conditions.

It’s not just cryptocurrencies that are at risk. Fraudulent credit card transactions and identity theft have increased by 35% during the COVID-19 pandemic, and small independent businesses remain the most affected. Encrypted payments on mobile devices could be a step toward security because they are customer-led transactions. Retailers can better manage their cash flow.

retail-led

Crypto adoption in retail will be driven primarily by customer demand, however, retail cryptocurrency managers can help reshape the payments industry in the same way that social media managers have previously changed how we perceive and interact with online brands.

Early retail adopters at the forefront of establishing industry standards can help improve current best practices. While daunting to some, those who invest early are more likely to reap the rewards of a loyal and enthusiastic crypto customer base.

Cryptocurrencies are leading the future of retail payments, refocusing stores on creating a fully immersive customer journey. Now brands can reach new customers and enter the crypto community by creating shopping experiences around community value.

Cryptocurrencies are already accepted online or at some traditional point of sale. Next, the need for further usage will drive retailers to redesign stores and the checkout experience based on consumer preferences.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-cryptocurrencies-will-lead-retail-payments-in-2022/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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