What drives the adoption of crypto-payments by the online retailer?

Crypto Cashier

Studies show that about 40% of people familiar with cryptocurrencies are open to using digital currencies to make day-to-day online payments. In 2017, the number of land-based retailers using cryptocurrency had grown by 30.3%, bringing the number to slightly over the 11, 200 marks.

Crypto adoption in the online retail space has attracted support from many companies. While commenting on cryptocurrencies and online store, Oliver Herren, Digitec Co-founder, stated:

  “Cryptocurrencies are fascinating and could become a suitable means of payment in e-commerce – we would like to support this development. We wanted to do that for a long time, but the effort was too long for a long time,” 

Factors that have led to online retailers adopting crypto payments 

Access to a broader market

The massive increase of cryptocurrency value in the past several years has created a lot of wealth, which mostly residences with millennials. Since this group also prefers online shopping, online retailers are slowly adding crypto payments to accommodate these customers. Accepting cryptocurrency as a payment method gives them access to an entirely new market of tech-savvy consumers. Online retailers prefer adopting this new payment system rather than miss out on the movement. 

Fast Transactions

Unlike the traditional credit card systems, cryptocurrency is processed immediately, giving you instant access to funds. For online retailers, being able to process transactions faster helps streamline cash flow within their businesses.  Retailers can use the readily available money to get more products for the customers.

Crypto education

Crypto educations has helped many understand the basics needed to make a transaction or two. Through this education, many online have been able to understand how they can use the payment system not only to grow their businesses but help them in their day-to-day operations.

No chargebacks

Chargebacks are a pain for many online retailers. This is mainly because most disputes are decided in favor of the customers. This becomes a discouragement to online business owners who lose money and goods to fraudulent clients. 

One of the most attractive features of crypto payments is that it eliminates changes for chargebacks. While making crypto payments, once a transaction is complete, no third party can intervene to reverse the payment. If a customer is not happy with their purchase, they have the option of resolving the matter amicably with the retailer or appeal to the court of public opinion. This has made many online businesses opt to use cryptocurrencies for payments.

Low Fees

Online retailers prefer using crypto due to the low cost of transactions with each trade. With the current economy, saving on small deals goes a long way.  The price of a crypto transaction will vary depending on the wallet or if you are making transactions through third parties. This, however, is lowered compared to other payment methods. 

More Security

One major threat to online businesses is attacks from hackers seeking personal data or funds collected by the company. Having crypto payments has helped online retailers prevent these threats. Online retailers are warming up to crypto payments because the technology behind their application,  blockchain, is highly secure. 

Retail apocalypse predictions

The growth of e-commerce has many predicting the close of physical stores in the U.S. Many see this happening in what is now  being called the “retail apocalypses.” The term first appeared back in 2017 following the closure of a large number of land-based stores by major retailers as well as several high-profile retail bankruptcies.

According to predictions by UBS, about 75,000 shops that handle the sale of electronics, furniture, and clothing will close shop by 2026. 

The question many in the crypto community are asking is whether decentralized digital currencies could end up as one of the primary beneficiaries of the retail apocalypse or not.

Records in recent months have shown significant growth of cryptocurrency use in the ecommerce space. Ideally, as businesses move to the digital area, the crypto adoption is mostly to increase.

Reduce fraud cases

Online retailers are using cryptocurrencies to avoid fraud cases. Since all transactions are made on the blockchain, it makes it difficult for any individual to alter the information.  


In cryptocurrencies, a person can create an infinite number of wallets without reference to the name, address, or any other personal information. Some online retailers have considered cryptocurrency payments to help clients who love staying anonymous. 

Mobile payments

The ability to make crypto transactions using mobile devices has also drive crypto adoption by online retailers. Like other online payment systems, cryptocurrencies can pay for goods and services.

Online retailers have come to adopt crypto payments as it allows them to enjoy  relatively less labor time cost compared to other payment instruments 


The online market runs 24 hours, seven days a week, it is essential to have a payment system that is always available. One advantage of cryptocurrencies is its accessibility at all times.  Another thing to note, cryptocurrencies have found their ways down to the unbanked communities who cannot access traditional banking services. To access these markets, online retailers have had to adopt crypto payments.

Factors hindering crypto adoptions by online retailers

Despite the many benefits that come with adding cryptocurrency payments to online businesses, digital currencies are still a long way to marking their footprint on the market. Simply put, the list of crypto-friendly online shops is much shorter compared to other payment systems. Various factors hinder the adoption of crypto payment systems. These include:

The volatility of cryptocurrency prices

This has been a significant concern not only in the online markets but also in other financial markets. Cryptocurrency prices are very unpredictable. For instance, back in 2017the price of Bitcoin fluctuated between $1,000 and $20,000. In 2019, the price dropped below the $5000 mark. These price swings discourage many from using them as digital currencies. 

51% attack

While the entire cryptocurrency structure strives to provide safety, there are instances where a few individuals gain access to the blockchain stealing funds or information. To gain access to the block, hackers manage to look out other parties gaining a 51% control, which allows them to take from cryptocurrency users.

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