Home Will You Be a Crypto Trailblazer or Play Catch Up?

Will You Be a Crypto Trailblazer or Play Catch Up?

by Samantha Kalany

Estimated reading time: 3 minutes

As a technology solutions provider (TSP), are you exploring how adding cryptocurrency payments at the point of sale (POS) can enhance customer experiences and benefit your clients? Or are you taking a wait-and-see attitude? The more cautious approach may hurt you competitively in the long run.

What Crypto-Holding Consumers Want

Finder.com’s Cryptocurrency Adoption Index reports that 31.5 million Americans own crypto in October 2022, and owners skew younger, with 56 percent falling into the 18-34 age range and 34 percent in the 35-54 range. Furthermore, the trend of investing in crypto seems to be giving way to more consumers using crypto for purchases.

Skrill research in August 2022 found that a whopping 80 percent of global crypto owners want to pay for goods with cryptocurrency at the point of sale, but they aren’t often able to use this payment method due to a lack of merchants who accept it.

However, these consumers are optimistic that things will change in the future. The vast majority, 91 percent, believe that paying with crypto will become as common online as paying with a card, and 59 percent are looking for that ability in the next five years. Additionally, 88 percent predict using crypto in-store will become a payment option alongside credit cards, and 47 percent are hopeful it will become a reality in the next five years.

Where the Industry Is with Crypto Acceptance at the Point of Sale

People familiar with cryptocurrency may wonder how consumers and retailers can cope with the time that a transaction takes. Traditionally, consumers would have to convert their cryptocurrency to fiat currency. Then, if the merchant accepts a crypto transaction, the business would have to wait for a miner to validate the transaction.

However, innovators have made cryptocurrency acceptance at the point of sale easier. Consumers can use crypto debit cards, many of which partner with Visa and Mastercard, which enable real-time exchanges to fiat currency. Another option is to use a point-of-sale gateway that allows drawing funds from the consumer’s crypto wallet for in-store or online payments. Another option is to use a third-party app to process transactions.

Some merchants accept cryptocurrency in-store, such as KFC, Burger King, and Subway locations. But many merchants are still unsure about the payment method. But one factor influencing them to change their minds and accept these payments is lower processing fees – often half or less than credit card processing fees. Additionally, with a crypto settlement, the money is immediately in the merchant’s account rather than the days a deposit can take with other digital payments. And, with crypto, there aren’t chargebacks. Once a transaction is complete and both parties have confirmed it, it’s not reversible.

Combine the financial advantages with enabling a payment choice that a growing number of consumers want, and merchants’ adoption could begin to tick up. Additionally, as more of today’s younger demographic with a crypto wallet become business owners, the skepticism about this payment type will fade away.

Where Are You with Crypto Acceptance at the Point of Sale?

When technology, consumer, and merchant crypto trends converge, demand for POS systems capable of accepting cryptocurrency will spike. Moreover, according to the Skrill survey, that milestone is set to occur in the not-too-distant future.

Will your software development business be ready to provide solutions capable of accepting cryptocurrency for payment at mPOSscale? Furthermore, will you have the industry knowledge necessary to advise merchants on the best options and have the partnerships you need to enable them?

Cryptocurrency is here, and it will increasingly become consumers’ choice for payments. With solutions available now, your competitors may argue that you’re already behind if you haven’t built cryptocurrency for payments into your development roadmap.

Choose to be on the cutting edge – and gain a competitive advantage – by enabling cryptocurrency for payments.