Deloitte, PayPal: US Retailers Expect Digital Currency to Be Pervasive in 5 Years – Ledger Insights
Late last year, Deloitte, in conjunction with PayPal, surveyed 2,000 retailers about their plans to support digital currency payments. He revealed that 85% expect digital currency to be ubiquitous within five years, with vendors expected to accept stablecoins and other cryptocurrencies. The survey also revealed significant interest in digital currency adoption in the finance function, with two-thirds expected to do so within a year.
Sentiment around stablecoins compared to other cryptocurrencies was not significantly different, with enabling crypto payments more generally seen as somewhat more important. The key driver is customer demand, with 64% already seeing significant consumer interest and 83% expecting interest to increase in the coming year.
By embracing cryptocurrencies, retailers believe they will improve customer experience, expand their consumer base, and strengthen their brand positioning as forward-thinking.
In terms of investment to support digital currency payments, most retailers were spending between $100,000 and $1 million, but 54% of large retailers with sales over $500 million plan to spend more than a year. million bucks. The vast majority (62%+) partner with digital currency payment processors. The rest is split between partnering with traditional payment processors and in-house feature development. However, the in-house group also partners to convert digital currency into fiat currency.
Integrate digital currency into the finance function
Initially, the primary driver of digital currency adoption was customer-facing apps. Receipt of funds immediately is also a major draw versus waiting for card acquiring companies to release funds.
But Deloitte reports significant interest in integrating digital currencies into the finance function, such as treasury. And 85% expect their vendors to accept stablecoins and cryptocurrencies within five years.
More than a quarter already support digital currencies in finance, and that figure will be almost two-thirds within a year – the rest plan to support crypto within four years, with just one for hundred having no present intention.
In terms of holding stablecoins as part of corporate treasury, it will only be possible to reap the full benefits if stablecoins are widely adopted in supply chains and wholesale markets.
Despite the optimistic sentiment, there are still barriers to adoption. The first three are considered payment platform security, changing regulations, and instability in the crypto market.
PayPal Crypto Progress
PayPal started allowing its merchants to accept cryptocurrencies last March. It plans to issue its own stablecoin and wants to become a central bank digital currency (CBDC) wallet provider.
Yesterday, he confirmed that he had obtained a full Bitlicense from the New York Department of Financial Services (NYDFS).
Until now, cryptocurrencies purchased through PayPal could only be spent or sold through PayPal. Yesterday it started allowing transfers to and from external crypto wallets, as well as transfers to other PayPal customers.