Although Burger King in Paris and Ralph Lauren have recently integrated crypto payments and NFT gifts, merchant adoption of cryptocurrencies is still low. Despite the many benefits that crypto can bring businesses, there are several barriers to adoption.
Dmitry Ivanov, CMO at CoinsPaid, a crypto payments ecosystem, and an expert in crypto adoption, highlights some of these challenges.
One significant obstacle to crypto adoption is the high volatility of cryptocurrencies, which can pose risks for merchants. The solution is to use stablecoin payments that are pegged to the price of fiat currencies, such as the USD and EUR, to minimize the negative impacts of volatility.
Another problem is the expensive blockchain fees that can arise during bull markets and periods of rising user activity. Merchants can integrate cryptocurrency payment methods across multiple blockchains to provide cost-efficient and fast alternatives to settle payments.
Merchants also face a lack of proper compliance solutions due to the lack of regulatory frameworks in the crypto sector. Outsourcing compliance processes can be an easy solution to this problem.
Despite these challenges, a Deloitte study shows that 85% of US retail organizations’ executives expect digital asset payments to be ubiquitous in their industry in five years. In the future, crypto adoption and education among consumers will likely be high enough that it will become a must for every business to accept digital asset payments.