Majority of surveyed merchants say crypto payments will be ubiquitous in 5 years
Saturday, July 16, 2022
Cryptocurrencies are going through a rough patch, at least as far as the investment world is concerned.
But devotees of the virtual assets insist they are here to stay, and that general acceptance of digital currency as payments for retail purchases is on the way.
A recent survey seems to support that position.
Widespread retail crypto payments expected soon: A majority of U.S. retailers expect digital currency payments to be the norm in the next five years, according to a study released last month by Deloitte in collaboration with PayPal.
The study's poll in December 2021 of 2,000 senior executives at consumer businesses in also found that three-quarters of United States retailers plan to accept crypto or stablecoin payments within the next two years.
To back up that projected crypto purchasing power, the report also noted that more than half of large retailers with revenues exceeding $500 million are now spending $1 million or more to build the required infrastructure to make retail cryptocurrency transactions possible.
"This survey shows that merchants view acceptance of digital currencies — driven by consumer acceptance and demand — as key to driving business, and those that are slow to adopt run the risk of falling significantly behind," said Zachary Aron, principal, Deloitte Consulting LLP, and Global and U.S. Banking and Capital Markets Payments Leader.
This Deloitte/PayPal survey, Merchants Getting Ready for Crypto, also earns this weekend's Saturday Shout Out.
Work remains in crytpo pay implementation: Of course, other studies with similar reports of widespread consumer embracement of crypto have been conducted over the years, and we're still waiting for that to happen in large numbers.
Yes, a handful of major companies now accept payment in cryptocurrency. Even a few nations have declared crypto as legal tender, but they've run into implementation hurdles.
Then there's cryptocurrency volatility. Digital value fluctuations affect not only consumers purchasing power and decisions, but also the operations of accepting retailers.
Crypto tax, business considerations: Value shifts during the crypto transaction life cycle could significantly determine, for ill or good, the value of a digital asset, presenting both corporate accounting and tax challenges.
"Using crypto as a means of exchange, in a manner similar to fiat currencies, presents particular accounting challenges," notes another Deloitte analysis. Specifically, it "may well warrant adjustments or additional disclosures to [profit and loss] and cash flow statements, among other financial documents.
Still, crypto fans and apparently many businesses are pushing forward. At least for now, according to the Deloitte study.
You also might find these items of interest:
- Treasury seeks public comment on digital assets' risks and opportunities
- Crypto's latest trouble: global Ponzi scheme under IRS-CI+ investigation
- House Ways & Means is latest to want answers about crypto in workplace retirement plans
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