Despite ready infrastructure and consumer interest, fewer than 10% of retailers accept crypto payments, mostly in pilot programs. The hesitation stems from unclear liability, custody, and compliance models that clash with established payment systems. Vitaliy Shtyrkin, chief product officer at B2BINPAY, argues that defining responsibility could accelerate adoption.
Crypto payments are poised to transform retail, with stablecoins handling trillions of dollars annually and surveys indicating strong consumer demand for digital assets at checkout. Yet, merchant adoption lags significantly. As Shtyrkin notes, 'the infrastructure is already here,' but retailers face a 'responsibility model that doesn’t fit into any existing operational, compliance, or accounting system.'
In traditional card and bank payments, liability is clearly defined, ensuring predictability. Crypto disrupts this: a transaction sent to the wrong address is irreversible, and disputed payments lack familiar resolution paths. 'When the rules are opaque, retailers walk away,' Shtyrkin writes, as even minor errors can lead to direct financial losses.
Custody adds complexity. Unlike cards, where banks and processors manage risk without merchants touching funds, crypto often requires integrating wallets into the checkout process. This exposes brands to blame if issues arise, even if a third-party provider handles the assets. Compliance poses further hurdles; identifying blacklisted wallets lacks a standard procedure, leaving retailers without a 'playbook' for investigations.
Shtyrkin proposes solutions to align crypto with trusted systems. These include separating custody from merchants via dedicated layers, enabling instant conversion to fiat to shield against volatility, and integrating crypto into existing dashboards for cards and refunds. 'Crypto payments don’t need any technological breakthrough,' he emphasizes. 'The missing piece is a responsibility model that the retail sector can trust.'
With infrastructure mature and demand evident, clarifying risk distribution among merchants, processors, custodians, and banks could spur wider use. Retailers, averse to uncertainty, may embrace crypto once accountability is transparent.