Specialty retail stores are faced with surging competition – the rise of online retailers like Amazon, the strong arm marketing power of big-box stores, and the burgeoning number of direct-to-consumer brands. These all are putting pressure on smaller specialty stores, forcing them to differentiate themselves and stay in the game.
At the same time, specialty stores now have a prime opportunity as in-store shopping is back, with physical retail on track to reach 80% of global retail sales this year. The online shopping sphere continues to grow since Covid.
So how do specialty stores set themselves apart? I suggest allowing your customers to pay with crypto. What many stores don’t know is that with a quick currency conversion, you can receive the funds in local currency (a.k.a. U.S. dollars) in a matter of seconds. And it has become easier than ever to set up.
Accepting crypto can help merchants set themselves apart from the pack. What’s more, they can even attract a new breed of eager customers by offering greater purchasing flexibility. In particular, stores that target younger patrons should be aware that their customers may already have crypto and are looking for places to spend it.
Crypto Payment Options: A New Normal
With the current value of Bitcoin and other currencies, digital money is more lucrative than ever. 65 million people in the U.S. own crypto, almost 25% of U.S. adults.
And it’s not just the U.S.— in Asia the number of crypto holders is even higher, at 327 million.
In the same way that the Apple Pay option is now a default for most merchants, a crypto payment option will become a baseline for retailers. Those who are unable to accept crypto will lose out on a motivated group of consumers looking for ways to spend their wealth.
Keeping it Seamless and Inexpensive
However, offering a crypto payment option is only viable if retailers can eliminate friction and create a seamless process. The last thing merchants want is long lines at the check out counter.
Retailers will want to consider some of the following requirements when looking to implement a crypto payments option:
- Crypto payments apps must be simple and essentially risk-free for the retailers. No one should have to sign up for a custom product that requires extensive POS integration and testing. Look for a payment gateway service that offers easy integration with your in-store or online POS using a simple API.
- Merchants should not have to hold a crypto account of their own or involve exposure to the crypto market. The paperwork and expense is too burdensome. You want customers to be able to convert their own volatile crypto, but not have to worry about your store’s funds being at risk.
- Instant conversion to dollars and settlement are essential. Some vendors use old payment rails that delay merchant payment for 24 hours or more. As a retailer, you need the money in your account immediately.
- Look for vendors with top partners that indicate a solid track record. Are they partnered with Clover or Shopify? This will indicate a robust and proven payments system.
- For the merchant, a gateway integration should cost nothing, and the costs should actually be far lower than the costs associated with Apple Pay and credit cards. There should be no bank fees or intermediaries. Having a ‘buy with crypto’ option for your customers should be as easy as selecting Visa or Mastercard.
It’s Already Here
Imagine a new demographic of crypto-wealthy individuals buying luxury bags at Tumi, jewelry at Tiffany’s or even top-of-the-line glasses frames at a Warby Parker store. But it doesn’t have to be luxury items. In New York, we have a cannabis dispensary and tattoo parlors that take crypto. Specialty stores that target young people — from sporting goods to clothing boutiques and coffee shops, for example—should be especially aware of the opportunity presented by crypto payments.
Over time, as the ease and attractive lower cost of crypto conversion makes its way to the mainstream, crypto will inevitably become a default payment option. You can bank on it – retailers will harvest the benefits.
Shane Rodgers is the CEO of PDX Global.
