From Bitcoin to Checkout: The Future of Retail Payments with Cryptocurrencies

The use cases of cryptocurrencies are quite limited so far, majorly only for making payments for digital assets. But what if cryptocurrencies can be used to make retail payments at stores?

Debit cards are now one of the most common modes of payment in retail outlets and even in brick-and-mortar stores. They have transformed our day-to-day payment process and made it much easier. However, it took a long time for debit cards to become mainstream payment methods. Introduced in the 1970s, debit cards were first only operable at Automated Teller Machines (ATMs). Thus, in the early years, most outlets weren’t accepting them, majorly because point-of-sale (POS) terminals were expensive and not as easily accessible as they are now.

And Web3 payment systems are experiencing similar issues right now. Although there are a few stores, such as Microsoft, Overstock, and Shopify, that accept payments in Bitcoin, consumers still can’t rely on crypto to buy groceries at local stores. One of the reasons behind this is the lack of awareness regarding crypto and the public’s poor sentiment due to major hacks and scams. However, a major factor behind crypto’s poor adaptability is the absence of a robust last-mile infrastructure, including POS terminals designed especially for crypto payments.

Thus, Web3 startups and innovators must think beyond digital-only products. They should focus more on enhancing consumer’s day-to-day experience with crypto. The mass adoption of cryptocurrencies will certainly take place once industry stakeholders, such as devs, project owners, and investors, collectively optimize their web3 products for practical utility.

Most cryptocurrencies are futile until we have the corresponding and accessible infrastructure, like debit cards with POS machines.

Getting User-centric

Web3 innovations are experiencing several challenges, both politically and financially. Thus, it is necessary to bring as many people to Web3 as soon as possible. But spreading out just narratives won’t help the industry grow as fast as it needs to. The narratives only grab attention for a while and don’t incentivize sustainable, long-term adoption.

An average daily user doesn’t want to discuss the technicalities, such as multi-party computation, layer-2 technologies, etc., and it’s not even necessary for them to know the jargon. In a similar way, speculative instruments and institutional products such as ETFs aren’t meant for the masses. Just specific niche traders, big-money investors, and degens are interested in these.

But web3 is so full of complex technologies right now that an average user doesn’t seem interested. Not many people search on Google for Crypto or subscribe to blockchain and crypto-focused channels.

In order to bring web3 to the mainstream, web3 startups and projects should stop focusing on marketing revolutionary ideas and futuristic narratives. They should rather focus on prioritizing systems or products that an average user needs here and now. Such systems and products include implementing infrastructure to make crypto more accessible and usable in daily life.

There are around 560+ million cryptocurrency owners globally, and they are keen to know how these digital currencies can be used for practical means and purposes instead of simply chasing the volatility.

Focusing More On The Grassroots

All these jargon-heavy and tech-driven development and marketing paradigms that we read on the internet show that Web3 is majorly optimizing for institutional adoption. Although this is not a bad thing, it creates positive results for a short while. Also, big institutions have their own interests and limitations. Often, they exploit retail investors for exit liquidity.

Someone focusing on the core Web3 principles will give more importance to empowerment at the grassroots. Thus, Web3 businesses should aim to build individual consumer-centric tools. The tools should give individuals the majority or full control of their data, identity, and money. As we already know, centralized for-profit institutions will never prioritize such tools. Web3 developers and entrepreneurs must share the responsibility of developing user-facing infra, and investors should relentlessly back them.

Developers and businesses should also focus on developing Web3-native point-of-sale (POS) terminals that can help retail merchants receive crypto payments hassle-free. The major focus should be on making abstraction as seamless as possible so that consumers and merchants don’t face major complexities like bridging funds or connecting wallets.

Along with POS terminals, there should also be a focus on developing physical cards (analogous to Debit cards) so that users can easily spend their crypto. Some businesses are also developing tokenized funds that enable users to pay dinner bills.

Making crypto usable for daily purchases like groceries and dining payments will bring it to the mainstream, empowering grassroots and generating a positive feedback loop. This will also bring more people into the web3 world as users will adopt crypto by observing their utility in daily life, just like Debit and Credit cards.

Conclusion

As we approach a new financial era, the possibilities for cryptocurrencies to change retail payments are huge. Imagine a world where your digital wallet is connected to every shopping experience, where the boundaries between traditional finance and digital assets disappear. This is not just a possibility but a certainty, driven by innovation, consumer demand and the relentless march of progress by Web3 pioneers. The journey to mainstream is hard, but with every step we take towards building robust, user friendly infrastructure we get closer to a more open, decentralised financial system. It’s time to dream, innovate and invest in the tools that will make cryptocurrencies a part of our daily lives, like debit cards used to be. The future of retail payments is digital and it starts now.