Savvy convenience stores are already considering how they could get involved in cryptocurrency, from adding ATMs and cryptocurrency kiosks to issuing their own branded currency when the infrastructure becomes available. .
The market cap of all cryptocurrencies is estimated to be over $2 trillion. This prepaid reserve has caught the attention of retailers to help investors access instant liquidity for the highly volatile alternative asset by accepting cryptocurrency directly for purchases. The growth has convenience store operators wondering how they can capitalize on this new opportunity to increase sales and new revenue.
Cryptocurrency and stablecoin platforms make money by charging fees to buy, sell, and hold a highly speculative fractional investment. For example, Block, formerly Square, now generates 70% of its revenue from cryptocurrency services through Spiral, formerly Square Crypto.
Knowing this, c-stores not only have the potential to add new net revenue from cryptocurrencies and stablecoins, but also eliminate exchanges by replacing other more expensive tenders such as credit and debit cards.
The ultimate utility of any funded or “assets under management” account is payment services, and all new payment types begin with merchant acceptance.
The most lucrative way for c-stores to play would be to issue their own branded cryptocurrency or stablecoin tied to the unused prepaid balances of a private label gift card account. It would be no different than a private label prepaid gift card, but with the upside and, more importantly, the volatile downside of fluctuating value.
Unused prepaid balances of fiat, stablecoins and cryptocurrency – only accessible through the c-store app – unlike card payments offer merchants real-time payment, good funds model with the advantage added non-repudiation, no E regulations or chargeback risks, and little or no exchange.
To do this, the c-store needs a five-star mobile app with a compelling value proposition for repeated consumer use for managing cryptocurrency and stablecoins as an add-on plus-one feature.
The end game is not just the loyalty inherent in any private label prepaid program (as the consumer can only spend their c-store prepaid funds at that store), but the ability to increase monetizable daily active users ( MDAU) within the c-store brand mobile app.
But all new payment types start with merchant acceptance and for that to work the troubleshooter will need to get their private label prepaid card program manager to support cryptocurrency and stablecoins, including including providing a physical point-of-sale (POS) interface to make payments at the pump for fuel sales and inside the convenience store through a five-star mobile app.
At this point, convenience store infrastructure providers lack the basic market connections, platform integrations, and business acumen needed to add cryptocurrency and stablecoins to the point of sale. .
ATMs and kiosks
The other way for c-stores to play is to offer cryptocurrency services with the ATMs or coin conversion kiosks already housed in the convenience store.
Finally, if your current providers don’t support it, convenience stores can add another single-purpose ATM or coin conversion kiosk among the myriad of businesses now offering such services.
Richard Crone is the CEO of Crone Consulting LLC, an independent consulting firm specializing in mobile strategy, self check-in/out and personalized payments. Follow him at Linkedin.com/in/richardcrone/.