What: Reports show that the acceptance of crypto payments is not always in the best interest of brands or retailers.

Why it is important: Younger consumers are quick to adopt cryptocurrency and many companies are looking at the long-term role of crypto in retail transactions, expecting the current user demographic to grow and change over time. Some companies are justifiably hesitant when they consider their target consumer.

While many brands have recently announced accepting crypto payments, reports show that cryptocurrency is, for the moment, primarily used for investment and trading. In addition, the percentage of women using crypto for payment, trading, or other reasons is significantly lower than it is within the male demographic.

Reports also point to market volatility as a caution for retailers. While it is assumed that fees will be lower, it has been reported that transaction fees for merchants fluctuate regularly. As well, crypto transactions aren’t private since businesses need to report any changes in crypto value as they are subject to capital gains taxes.

Only 2% of U.S. adults used crypto for payment over the prior 12 months, making it clear that smaller retailers should define their target consumer when considering accepting crypto payments.

Retailers navigating crypto payment