Ecommerce and cryptocurrency might go hand and hand in the coming years. Why might that be? Let’s find out.
2021 has been a good year for cryptocurrency’s popularity and exposure. With Elon Musk tweeting about accepting crypto as payment for his company, SpaceX, and Bitcoin’s prices going substantially down, there has been a lot of talk surrounding cryptocurrency.
But price fluctuations are not the only news-worthy thing in the crypto-verse. Ecommerce companies, such as Walmart and Amazon, have also shown interest in cryptocurrency.
But how do ecommerce and cryptocurrency relate to each other? When will these popular platforms begin accepting cryptocurrency payments? Here’s an overview.
Amazon’s Interest in Cryptocurrency
In a recent job posting, Amazon was on the hunt for an ‘’experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap.”
In the job posting, Amazon stated the candidate would ‘’leverage your domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency to develop the case for the capabilities which should be developed, drive the overall vision and product strategy, and gain leadership buy-in and investment for new capabilities’’.
An Amazon spokesperson reported that the company was inspired by the innovation in the cryptocurrency space and wanted to explore how they could bring this to Amazon.
Moreover, he said that fast, modern, and inexpensive payments would be paramount in the future, and Amazon wants to bring this to its customers.
Back in 2017, the company’s CEO, Andy Jassy, said that Amazon was not focusing on blockchain technology, but the company was observing the space.
It seems that the advancements and trends in the crypto space since 2017 have now forced the ecommerce giant to open up to the idea of accepting cryptocurrency payments.
It doesn’t come as a surprise that Amazon has taken this route since it is not the first mainstream company to do so.
In May 2021, Apple also said it was looking for ‘alternative payment’ partners, and the company’s job listing included cryptocurrency as potential expertise for the right candidate.
Walmart’s Interest in Cryptocurrency
Mirroring the step taken by Amazon, Walmart also posted a job listing, looking for ‘an expert in Digital Currencies/ Cryptocurrency and Blockchain related technologies’ who will ‘provide the leadership to identify technology and customer trends and the investments needed to build on those trends.’
It seems like Walmart’s move towards cryptocurrency payments came from Amazon’s job listing, which was posted only three weeks before Walmart’s listing.
Five months ago, there were also rumors that Amazon was doing the groundwork for creating a digital currency to be used on its platforms and marketplaces for payments.
With Amazon and cryptocurrency creating this relationship, it’s understandable why Walmart wanted to follow suit.
Fortune 500 Companies and Crypto
The talks of Walmart and cryptocurrency might have only started making rounds recently, but it’s not the first Fortune 500 company to have delved into crypto.
In fact, Apple, PayPal, and JP Morgan have previously posted job listings for cryptocurrency positions. Some companies, such as Home Depot, Whole Foods, and Starbucks, allow indirect cryptocurrency payments.
Basically, customers use certain apps to pay through cryptocurrency, and the app converts it into US dollars.
Ecommerce Companies Accepting Bitcoins
Will ecommerce and cryptocurrency go hand in hand in the future? It definitely seems so. While many online platforms have only started talking about cryptocurrency payments now, others already jumped the bandwagon years ago.
Here are some of these companies:
Microsoft
Microsoft started accepting Bitcoin as payment back in 2014 in its Xbox Store. As the prices got volatile, the company paused crypto payments, but they started accepting them again later.
Bill Gates is a proponent of cryptocurrency as he has said multiple times that Bitcoin is better than regular currency.
Home Depot
Home Depot has Flexa’s checkout systems in their stores that make it very easy for customers to pay through Bitcoin.
Overstock
To some experts, it might seem like Amazon and cryptocurrency collaborations might be marketing ploys. On the other hand, Overstock is a company leading the way in terms of cryptocurrency payments.
The website allows users to make payments in multiple cryptocurrencies, including Bitcoin. Moreover, they hold cryptocurrency too, which means they are in for the long haul.
Whole Foods
Due to its partnership with Winklevoss Flex spending app ‘Spedn,’ Whole Foods is also accepting Bitcoin now. You can buy your groceries using cryptocurrency with ultimate ease.
Cryptocurrency Mass Adoption: Is It Possible?
Considering the current interest of ecommerce companies in crypto, it’s likely that a system of mass adoption might be introduced somewhere in the future. However, at the moment, that is far from happening.
For one, crypto prices are extremely volatile, subject to all sorts of influences. Stability is imperative when it comes to payments, so something as volatile as crypto might not be everyone’s first choice.
Secondly, most currencies are in their infancy, so it is hard to say what their trajectory will be. Most of them follow the market whims and have no set aim.
These whims also direct buyers’ interest. For instance, most people got interested in Bitcoin due to its bull market phase that put it in the spotlight. But once the BTC price went down, the interest in the cryptocurrency also decreased. That goes to show that most consumers might not be ready for crypto payments yet.
Future of Ecommerce and Cryptocurrency
Walmart and cryptocurrency experts might sit together and come up with a crypto-based payment method. But then what? Will all major retailers and marketplaces adopt cryptocurrency.
It seems highly unlikely for that to happen any time soon. Although the trend is growing, it’s not still viable due to many reasons, such as lack of stability, high volatility, and minimal investment in crypto from the consumers’ side.
Wrapping Up
A Burning Glass analysis showed that there had been 18,940 job postings in the US in the past 12 months, mentioning ‘blockchain.’ The report also predicted that demand for such jobs would go up by 24.6% in the next decade.
Trends like this make it understandable why Amazon, Walmart, and other Fortune 500 companies are also planning to take the crypto route. If all goes well, cryptocurrency payments will be available at all major retailers in the next few years.
