Recently, the number of retailers and payment processors accepting cryptocurrency payments has increased. Though not widespread, cryptocurrency provides an alternative transaction method for people who are ready to drop the traditional payment system.

It won’t be long before you’ll be able to pay for your everyday purchases with cryptocurrency as more retailers integrate cryptocurrency payments. With innovations such as the lightning network, cryptocurrency transactions are becoming faster and more efficient. There’s no doubt about it—cryptocurrency is the future of retail.

The Rise of Cryptocurrency in Retail

If you’re exploring a different payment method for your everyday purchases, cryptocurrency is an excellent option. First, cryptocurrency provides a cheap and private way to transfer funds without the typical banking restrictions. And many individuals, businesses, and retailers have expanded their payment systems to accept cryptocurrency payments.

Paying with Cryptocurrency

At a basic level, when you use cryptocurrency to make a retail purchase, you will simply be transferring cryptocurrency from your wallet to the retailer’s wallet. There are three ways to pay with cryptocurrency:

Manual Payment

You can make a manual payment transfer by entering the recipient’s address. A manual cryptocurrency transfer may sound like a straightforward process, but you can make irreversible mistakes if not careful. Some of the risks of paying cryptocurrency manually include:

• Entering the wrong address (There is no way to reverse the transfer)
• Choosing the wrong blockchain network
• Sending the wrong type of cryptocurrency

Payment Processor A cryptocurrency payment processor is essentially a third-party platform that deals with various digital currencies. Using a cryptocurrency payment processor receives digital payments and eliminates many of the risks involved in manual payments. Typically, retailers register with a particular cryptocurrency payment processor or “gateway” to facilitate the process of cryptocurrency retail payments. It can exchange cryptocurrency for fiat (government-issued) money, which is then transferred to the retailer’s account and on to their specific bank. Here are the steps to make a retail purchase using a cryptocurrency payment gateway: Shop (That’s the easy part). The retailer will calculate the total cost of your items and create a digital invoice. You will scan a QR code with the retailer’s wallet address and purchase amount. Once completed, your payment is transferred to the retailer’s digital wallet or account. Remember, your payment exchange rate depends on that day’s cryptocurrency market value. The entire gateway payment process only takes a few minutes. Debit or Credit Card A cryptocurrency debit or credit card will work like a typical bank debit or credit card. You load your respective card with a certain amount of cryptocurrency, and the card’s payment platform works behind the scenes to convert it to the currency required to purchase the items. You can use your cryptocurrency debit or credit card to make retail purchases in Euros or Dollars or any other currency the card’s network supports. Additionally, you can use the cryptocurrency debit card to withdraw cash from an ATM in any network-supported currency.

Advantages of Using Cryptocurrency for Retail Purchases Here are a few reasons to start using cryptocurrency for your retail purchases: Cost Efficiency For a growing retail business, merchant fees from credit card transactions may seem marginal, but they can add up quickly. Cryptocurrency fees for retailers differ depending on the transaction, but they’re typically more cost-effective. And with the number of consumers making purchases using cryptocurrency increasing by almost 70% in the last year, the appeal for retailers is certainly there. User Anonymity When using a typical bank transfer or debit card to make retail purchases, the bank or anyone else can learn your purchase history using the subsequent paper trail. This is usually more difficult for others to see with cryptocurrency payments, especially if you’re generating a new address for each transaction. With cryptocurrency, transactions are artificial, meaning there is nothing to identify you other than your wallet address. Even though this level of anonymity comes with the risk of encouraging illegal transitions, cryptocurrency is still a valuable characteristic for anyone who wishes to keep their purchase history private. Transparency Cryptocurrency payments have a level of transparency that traditional bank or cash payments have yet to achieve. First, a cryptocurrency payment system has a valid and auditable ledger of transactions. Additionally, transactions are only added to the ledger after verification by the system and are irreversible. Typically, this means you can’t add or hide a cryptocurrency transaction in an attempt to defraud a retailer. Using cryptocurrency for retail is one way for retailers to minimize loss through fraud or reversed and canceled bank payments. Accessibility Cryptocurrency payment services are more accessible when compared to other payment systems because you only need a smartphone and internet connection to complete a transaction. Additionally, traditional payment systems first involve creating a bank account and then going through numerous verification processes before an account is approved. On the other hand, setting up a cryptocurrency wallet for making retail purchases is straightforward. There are no background checks or ID verification processes.

Retailers that Accept Cryptocurrency While the idea of cryptocurrency as a standard payment option for retailers is still blossoming, a surprising number of companies have joined the front lines of the crypto movement. As of April 2022, the following retailers accept cryptocurrency as a payment option:

• Microsoft
• PayPal
• Overstock
• Whole Foods
• Etsy
• Starbucks
• Newegg
• Home Depot
• Rakuten
• Twitch
• Cheapair.com
• AMC Theatres
• AT&T
• Dish Network

You may have noticed many of these companies you use and shop at every day. Next time you shop at one of these locations, ask about their cryptocurrency payment options. You can learn which type of cryptocurrency payment method they prefer or accept and if any additional fees are involved.

Checking Out With Cryptocurrency Using cryptocurrency for your retail payments is an excellent way to pay for products and services without having ties to a particular institution. If you aren’t a fan of banks and would enjoy making purchases securely and anonymously, then cryptocurrency payments are your best bet. Be on the lookout for the increase in retailers accepting cryptocurrency; there’s an upswing in stores accepting the new form of payment.