Asian retailers continue to massively adopt blockchain and crypto payments. The numbers are staggering, Asia is the continent with the highest number of investments in the crypto industry. It alone has NFT sales of $22 billion in 2022, or 35% of global sales. Moreover, 2023 could be the record year for Asians, with transactions surpassing $16 billion. Interesting data, as it could encourage stores to comply with cryptocurrency payments. Especially since Asian consumers are particularly fond of fast, secure and reliable transactions. This is exactly what blockchains can offer, all that remains is for stores to follow suit.
Covid-19: The trigger for Asian retailers?
The romance between Asian retailers and crypto payments intensified during Covid-19. The multiple confinements have forced stores to adopt the virtual invoices with QR code and biometrics. This method of payment has the advantage of presenting low commissions. The transparency of crypto payments is a big relief for Asian retailers. In fact, 25% of them are cross-border customers. They therefore find no difficulty in shopping, no matter where they are.
Department stores are multiplying strategies to push customers to adopt crypto payments. Some go even further by offering discounts for customers who buy in virtual money. With the reduction in waiting time and the risk of fraud, cryptos continue to convince. Quite the opposite of classic virtual payments, as credit card fraud has spiked during the pandemic. The absence of third parties in transactions and the encryption of data enhance the credibility of crypto payments.
Adopting cryptocurrencies to better meet future constraints
Cryptocurrencies are the currency of the future, Asian retailers have understood this. They are certainly volatile, but it must be recognized that they are capable of creating capital gains. But first, the ground would have to be favorable and the market conditions favourable. Indeed, for many stores, cryptocurrencies are not only an exchange currency, they also represent an investment opportunity. But not everything has yet been liberalized, which is why legislators continue to multiply standards to regulate transactions and fill legal voids.
Apart from China which continues to ban cryptocurrencies, South Korea also has many requirements for cryptocurrency exchanges. We understand better why, last year, several companies had difficulties in complying with the requirements. Yet, one in 3 Korean national staff invests in cryptos. This figure is larger than the 11% of Americans who are interested in crypto investments.
In sum, the democratization of cryptocurrencies intensifies in Asia with many blockchain projects. Traditional institutions are meeting more and more resistance and the number of crypto holders continues to grow every day, as well as brands accepting crypto payments. Given this state of affairs, Asian stores are obliged to comply with the risk of not taking advantage of the current market trend. The Asian retail movement faces a lot of hurdles, but the way things are going, nothing will stop Asian retailers from buying the tokens.
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