Cryptocurrency and Digital Wallets: The Future of eCom Payment Methods

Speed, convenience, security. 

Three things that have been propelling eCom payment methods into the future.

With contactless payments already becoming the new normal and luxury brands like Tag Heuer and Gucci now accepting cryptocurrencies — is the future here sooner than expected? 

In a recent Reuters article, Gregory Boutte, Chief Client and Digital Officer for luxury conglomerate Kering (Gucci’s parent company), explained that when it comes to technology, they take a “test and learn” rather than a “wait and see” approach.

And given how quickly technology advances, it’s no surprise they believe brands that "wait and see" risk being left behind.

However, the future and your brand’s approach to eCom payment methods depend on the details — like the products you sell, your target audience, and how quickly your shoppers are catching on. 

Is Your Market Already Using Digital Currencies? 

Cryptocurrencies and stablecoins may one day become mainstream for day-to-day transactions, but we’re not that close yet. While some tech-savvy audiences are eager to adopt digital currencies, most shoppers remain hesitant. This boils down to two primary factors:

1. Lack of Understanding
2. Lack of Trust

And trust is the biggie.

While stablecoins (like USDC or Tether) are designed to be less volatile, cryptocurrencies like Bitcoin and Ethereum are notorious for their unpredictable price swings. A retailer might accept payment in cryptocurrency, only to find that its value fluctuates dramatically before they can exchange it for fiat currency (government-issued money like the US Dollar (USD), Euro (EUR), and Japanese Yen (JPY)).

Additionally, global governments are still working out how to regulate cryptocurrencies, creating even more uncertainty for both consumers and retailers.

So, Who Is Using Digital Currencies, and for What?

According to UPay Blog stats:

• 57% of cryptocurrency investors are between the ages of 28 and 43
• 62% of crypto investors are male

And despite the growing interest, a PMC study at the end of 2024 found that only 1.9% of cryptocurrency investors use it for regular payments, while 79.2% hold cryptocurrency as investments.

So, to answer the question: No, your market is probably not using digital currencies — yet.

But as key barriers are addressed, the shift to mainstream adoption may be closer than we may think.

What Are the Barriers and Limitations of Digital Currencies? 

It’s a bit of the chicken and the egg scenario. 

One of the most significant barriers is the lack of universal adoption. 

1. Most businesses don’t currently accept crypto because of limited demand, complicated integration, and regulatory uncertainty
2. However, shoppers remain apprehensive without adoption, which slows down progress in demand, technology, and regulation

We also need to consider that adding crypto payment gateways requires time, money, and tech expertise — a hurdle small-to-medium retailers may not be able to overcome. And then complexities are compounded when you factor in the scalability issues on popular blockchains like Bitcoin and Ethereum that lead to slow transaction speeds and high fees during peak times. 

And the most significant barrier? Currency risk! If the value shifts too quickly, it could mess with your margins, especially if you're working internationally.

Can't AI and Smart Payments Solve That? 

AI is advancing faster than you can say “blockchain,” but it’s not yet ready to fill the gaps. That said, AI tools and smart payment systems are driving innovation in eCom payment methods. Here’s what AI can do: 

1. Analyze patterns to detect and prevent fraudulent crypto transactions
2. Predict market trends, helping traders and businesses hedge against volatility
3. Simplify managing multiple cryptocurrencies and automate transactions
4. Speed up and lower the cost of crypto transactions using Layer 2 technologies like Optimism and Arbitrum 
5. Educate consumers through chatbots and guides  
6. Split payments between crypto and fiat currency to reduce hesitation

However, there are many things that AI and market payments will fall short in, including:

• Regulatory hurdles
• Energy consumption associated with digital currencies
• And infrastructure needs

So yes, AI and smart payment systems can absolutely lower the barriers to using digital currencies by improving user experience, security, and scalability. But they leave the most significant roadblocks — regulation, trust, and market volatility — unmanaged. 

Even so, if these retail digital currency stars align to reduce these limitations and barriers, we could be seeing a slow-but-very-steady increase in brand crypto usage. 

What Could Adopting Cryptocurrency into an Online Store Look Like? 

For online retailers whose primary target shoppers are younger, tech-savvy, and privacy-conscious, we will likely see more acceptance of cryptocurrencies like Bitcoin, Ethereum, or stablecoins (like USDC) as mainstream eCommerce payment methods. This would enable them to offer faster transactions and increased transparency and fraud prevention that blockchain tech offers. 

Cryptocurrencies can also bypass traditional banking systems, which is a big plus for global sellers and could potentially reduce fees (and increase profit margins) on cross-border transactions. 

But how do we get from here to there? The answer: digital wallets. 

How Are eCom Digital Wallets Bridging the Gap Between the “Now” and the “After Now”?

Digital wallets could play a huge role in bridging the gap until cryptocurrency becomes more mainstream. Let’s quickly look at the three main ways wallets are getting us closer to the future. 

Getting Shoppers Used to Varied eCom Payment Methods 

Firstly, familiarizing shoppers with newer payment options reduces their resistance to them. Digital wallets (like Apple Pay, Google Pay, etc.) are already moving shoppers away from cash and cards and making them more comfortable with digital transactions. 

Additionally, when shopping in a new store, many shoppers prefer paying with digital wallets instead of inserting their credit card details on a site they haven’t shopped with before. 

Integrating Payments 

Many wallets now support both traditional and digital currencies. For example, PayPal allows users to pay with crypto while merchants receive fiat currency, eliminating volatility concerns. 

The advantage here is that digital wallets can act as intermediaries, letting users pay with crypto while merchants receive fiat currencies. This solves the volatility problem and makes crypto payments less intimidating for businesses. It will also help make cryptocurrency less complex and more accessible to retailers and shoppers. 

While digital wallets are used for around 51% of online purchases in the US, according to Statista, 70% of transactions are made using digital wallets in the Asia-Pacific region.  

However, this is not the complete picture — age is definitely a factor. In the US, approximately 80% of Gen Z consumers have adopted digital wallets, while 66% of millennials and 43.7% of Gen Xers have done the same.

Simplifying Security

And because digital wallets already use advanced security measures, they can increase trust in digital payments, including crypto, overall. 

However, with all their benefits, there are still three things that digital wallets can’t fully bridge: 

• Volatility 
• Regulatory implications 
• Merchant hesitation 

The Bottom Line? We’ve Got Some Ways to Go  

Yes, digital wallets can streamline transactions with near-instant payments for fiat currencies and some crypto (speed) and centralize everything into one eCom payment platform to make it easier for users (convenience).  

So, while digital wallets get us a step closer to the future of crypto eCom payment methods for two of the main technology drivers, speed and convenience, security remains a major hurdle.

While wallets and AI reduce risks, hacking, scams, and consumer mistrust still limit adoption. Educating users and addressing regulatory uncertainty are critical steps before crypto becomes mainstream as a payment method rather than just an investment.

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