Why are retailers accepting cryptocurrency as a payment method?

Professional retailers are forever at risk of falling behind the times. The advent of e-commerce completely redefined what it meant to be a high street retailer and caused many brands to lose their competitive edge.

Now, cryptocurrency acceptance is seen as one of the best means to futureproof a business. Besides attracting pro-crypto customers, there are several benefits to accepting Bitcoin, Ethereum, and even Dogecoin as a payment method. Failure to accept crypto could result in many big brands losing more of their customer base.

Crypto’s widespread adoption

Crypto is no longer seen as a mere investment type; its widespread adoption comes as a result of its emerging practical use cases. From a user point of view, crypto is a low-cost solution to overcoming transaction fees, wait times, and other negative aspects of traditional banking methods.  

Bitcoin has become one of the most popular means of transferring money internationally. According to a recent report, nearly a quarter of people polled stated that they had used crypto as a digital payment method to send cash to a different country. The reason why crypto has become so popular for remittance purposes is that it charges minimal transaction fees.  

Similarly, crypto is now also utilised for paying for online goods and services - not merely for purchasing items from retailers. iGaming is one sector in which crypto has been widely adopted. While compiling a list of Non-Gamstop online casinos in the UK, writer Nick Pappas expressed that a high volume of offshore casino sites are now crypto-friendly.

These sites are not regulated by the UKGC, so can offer a wide range of casino gambling options. They can also cater to those who have signed up for the Gamstop self-exclusion scheme, which UKGC-regulated casinos cannot do.  

The above crypto use cases are becoming a lot more common around the world. Given this, it makes sense that crypto has become a lot more prominent in other sectors, including retail.

Increased regulation

Another reason why more retail businesses are now accepting cryptocurrency is due to the regulatory framework that now surrounds it. In many countries around the world, financial regulators have established new rules to better define what crypto is. This has helped to legitimise it as a payment method and instilled confidence in retail workers regarding its validity.

For example, in the UK, a new draft law was introduced to parliament on 11th September 2024 that identified digital assets as personal property for the first time. Developments such as this boost the retail industry’s confidence in crypto.  

The benefits that crypto holds for retail

However, the widespread acceptance of crypto isn’t the only reason that retail businesses have started to adopt it. By including crypto alongside other payment methods - i.e., cash, debit/credit cards, Apple Pay - the business benefits in more ways than one.

Crypto acceptance provides the following benefits for businesses:

Low transaction fees

As aforementioned, crypto guarantees low transaction fees for the buyer. Cryptocurrency is decentralised, meaning it doesn’t feature a central body. All transactions are, therefore, effectively automated. This means that nobody needs to be paid for handling transactions as no transaction handling takes place.  

This is not only beneficial to the buyer but also to the seller. Retail shops are charged a fee for both PayPal and credit or debit card transactions. For example, PayPal can charge as much as 2.9% for some commercial transactions.

Therefore, accepting crypto can help retailers forgo considerable transaction fees.

Security

Another big benefit of cryptocurrency is the security it can provide for transactions. As soon as a crypto transaction is made it gets recorded on the blockchain.

Both the buyer and the seller can review the blockchain to ensure that the transaction has taken place, which provides legitimacy and transparency. The blockchain is also safeguarded against cyber-attacks thanks to the encryption methods it employs.

Global sales

Unlike fiat currencies, cryptocurrency is borderless. This means that no currency exchanges are required to take place; neither are cross-border payment fees imposed. So, if a retailer wants to expand their global reach, accepting crypto makes doing so more economical.

Final thoughts

Retailers aren’t only accepting crypto as a means of pleasing their clientele - they’re doing it because it comes with low transaction fees, high security, and global reach.

The fact that it also attracts pro-crypto shoppers is merely a plus point, rather than the main reason for it. It’s just as convenient as the likes of PayPal, without the transaction fees attached.