It was another big week for cryptocurrency — with news about regulation, crypto-native wallets and a huge new potential for expanded merchant acceptance of crypto.
With the announcement that merchants using Verifone terminals can now accept crypto-native wallets at the physical point of sale, crypto continued its move into the mainstream. This points to the possibility that merchants may soon have to decide between accepting crypto or losing customers.
“We’re definitely seeing growing interest, both in terms of people that want to pay with crypto, the different solution providers that you’ve mentioned that are definitely pushing use of it in different aspects, and making it easy to be accepted as a currency,” Nithai Barzam, chief operating officer at nsKnox, told PYMNTS’ Karen Webster.
It will take time for crypto payments to become fully mainstream, especially in B2B transactions, but the move is gaining momentum, driven by the fact that more than 100 million people worldwide are using crypto.
Read more: Crypto Payments Will Soon Divide Merchants Into ‘Haves’ and ‘Have Nots’
Striking a Balance Between Regulation and Innovation
The week also saw discussions on the topic of how to regulate crypto. Enforcing the regulations that already exist would be a good start, Barzam said. As more people — and especially businesses — use it for payments, demand for greater regulation, infrastructure, control and security will rise as well.
“I think there needs to be a good balance between regulation that will keep this world safe and one that’s not going to make things harder for innovators and for the free spirits among us,” Barzam said.
Read more: Senator Aim to Amend Infrastructure Bill’s Crypto Rules
Offering Payment Choice at Checkout
It was also a big week in retail, with Walmart, Target and Macy’s reporting earnings. They showed a slowdown in eCommerce growth as consumers returned to in-store shopping, as well as a pickup in buying online and picking up curbside.
“I think people were stuck at home for so long — sometimes because they were told to, sometimes because they were concerned — and then getting everything online made sense,” Barzam said. “It’s in our nature to go out, to see others, and we start telling ourselves the stories that it’s OK and safe, and we start doing that.”
Also read: Target Says Buy Online, Pickup In Store Up 400% Since 2019
During the week, PYMNTS published research showing that more payment choices at online checkout drive customer satisfaction and conversion. While other factors have a hand in improving customer experience too, merchants in all categories are adding payment methods such as mobile wallets and buy now, pay later (BNPL).
“We need to change, we need to innovate, we need to look to our customers as if we support the newest thing, and so we’ll introduce these as well,” Barzam said. “Customers will tell us what they actually like and what they’re not using so much.”
Learn more: Making Online Checkout Better Starts at the Beginning, Not the End
Staying Alert for Fraud
During the week, PYMNTS also talked about fraud with people in the business of stopping it, learning about strategies fraudsters are using this holiday season. In addition, PYMNTS research has found that 18% of millennials say they were the victim of payment fraud over the holidays last year.
Barzam said that whether fraudsters are targeting consumers or businesses, they try to create a sense of urgency — for example, offering something that sounds like a great deal that buyers have to purchase immediately. They’re also investing in copycat websites, as well as emails and texts that ask the recipient to confirm details.
Read more: Supply Chain Shortages Fuel Fraudsters With Fake Storefronts To Trick Holiday Shoppers
Following Best Practices
“For some of us, when we think about fraud, this is like the teenager in the basement … trying to play tricks,” Barzam said. “But in reality, what this is, is very well-organized crime, well-funded. When they score $100 million, it’s great funding for their startup and the ability to develop the next attack.”
To avoid fraud, he said, consumers and businesses should exercise increased caution this season. He advises that they don’t click on links that are sent to them and don’t call the numbers that call them, in case it’s a fraudster impersonating a merchant they’ve done business with.
“Best practice is to go back to the actual purchase and give the merchant a call on the number they published and not the one that it texting you right now,” Barzam said.
See: FinCEN Lists Cybercrime Involving Virtual Currencies as an AML Priority
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