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The Evolution of Cryptocurrency in E-commerce: A Deep Dive

Unraveling the rise of cryptocurrencies in retail: from consumer adoption to the future of e-commerce transactions

Aditya sharma
Aditya sharma
Sep 28 2023


In a world increasingly leaning towards digitalization, cryptocurrencies are emerging as a significant player in the retail sector. Over the past decade, these digital currencies have evolved from an obscure interest to a transformative phase in payment methods.

A Brief History of Cryptocurrency in Retail

The inception of Bitcoin in 2009 introduced the world to a novel concept of decentralized digital currency. As years passed, a variety of cryptocurrencies, such as Ethereum and Litecoin, made their entry, and retailers, always in pursuit of innovative solutions, began to perceive potential in these digital assets.

Consumer Interest and Adoption

Consumer interest in cryptocurrencies has consistently shown an upward trajectory:

  • Rise in Ownership: Data from 2021 revealed that 23% of consumers held cryptocurrencies, marking a notable increase from 16% in the previous year, 2020. This surge indicates a growing trust and interest in digital currencies not just as an investment but also as a viable transaction medium.
  • Dominance of Bitcoin: Among the myriad of digital currencies, Bitcoin remains the foremost choice, held by 12% of those surveyed. Ethereum isn't far behind, with 6.8% of respondents holding it. These figures underscore Bitcoin's dominant and trusted position, with Ethereum steadily gaining ground.
  • Investment Perspective: For many, cryptocurrency doubles as an investment avenue. About 55% of those surveyed bought cryptocurrency primarily as an investment, with 58% of Generation X and 53% of Generation Z expressing similar sentiments.

Merchant Adoption & Insights

Businesses, as key drivers of technological adoption, showcase intriguing patterns in cryptocurrency integration:

  • Adoption Rate: As of the latest data, 46% of merchants have incorporated cryptocurrency into their payment systems, suggesting growing acceptance with ample room for further adoption.
  • Large Retailers Leading the Way: Major players in the retail sector spearhead crypto adoption. A remarkable 85% of businesses with annual online sales exceeding $1 billion now accept cryptocurrency. However, there's a disparity with mid-sized retailers, as only 23% with sales between $250 million to $1 billion have embraced it.
  • Payment Methods: Cryptocurrency's adoption spectrum is vast. A significant majority of merchants (93%) identified non-crypto-native wallets, such as PayPal or Venmo, as the top choice for customers executing crypto payments.

Source: Merchants getting ready for crypto survey prepared in collaboration with Deloitte and PayPal.

The Stablecoin Surge

Often overlooked, stablecoins are making a noteworthy impact:

  • Rising Popularity: Tied to stable assets like the US dollar, a significant 64% of merchants reported escalating consumer interest in stablecoins. Their reduced volatility, compared to other cryptocurrencies, contributes to this growing appeal.

Benefits and Challenges of Crypto in Retail

Cryptocurrency presents a mix of opportunities and challenges in the retail landscape:


  • Cost Efficiency: Crypto transactions are notably cost-effective, typically hovering around 1% to process, offering clear savings compared to traditional credit card transactions.
  • New Customer Access: Cryptocurrency isn't merely a payment method for businesses; it's a portal to a budding market segment. An impressive 32% of businesses view it as an essential tool to access a fresh customer base.
  • Speed and Modernization: Around 40% of merchants value the swift transaction speeds crypto offers, and accepting it can brand businesses as modern and forward-thinking.


  • Volatility: Price fluctuations of cryptocurrencies pose a considerable challenge. A significant 64% of merchants find this volatility daunting.
  • Technical Barriers: Integration remains a stumbling block, with 68% of merchants not currently accepting crypto citing technical challenges.
  • Perceived Costs: Despite potential savings, 30% of non-adopters feel the costs tied to crypto are excessive.

Source: Paying with Cryptocurrency (June 2022)

The Road Ahead

The interplay between cryptocurrencies and retail is in its nascent stages. With giants like PayPal simplifying cryptocurrency transactions, adoption barriers are diminishing. As the technology matures, a more profound integration of crypto into the retail sector is on the horizon, promising consumers more choices and businesses fresh growth avenues.

Source: Worldpay report


The retail world is on the precipice of a crypto revolution. As challenges are navigated and the technology continues to mature, digital currencies have the potential to reshape transaction methods. It's a thrilling epoch, and both merchants and consumers would benefit from staying informed, prepared, and receptive to the plethora of opportunities on the horizon.

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Aditya sharma

Aditya sharma

Simplifying Blockchain Payments. Fintech aficionado

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