PayThink

Crypto is the path to keep convenience stores relevant

Register now

Investors and retailers alike are becoming even more interested in cryptocurrency transactions. As this demand for cryptocurrency transactions grows, there is no better time than now for convenience stores to give serious consideration to adopting cryptocurrency point-of-sale (POS) services in their shops.

There are many benefits to adding a cryptocurrency POS service at a convenience store, including growing the customer base.

Average convenience stores would see an uptick in customers from those interested in the store's cryptocurrency capabilities. Given the high percentage of millennial consumer, convenience stores could potentially reach more of these customers. In addition, cryptocurrency POS services make a world of banking and financial transactions accessible to the underbanked community, further expanding the potential convenience store audience.

New customers may visit convenience stores that offer cryptocurrency with the sole intent to buy bitcoin, but they often buy other necessities or impulse items like drinks or snacks. In fact, one in five customers visiting a convenience store to purchase bitcoin end up buying additional items while there. The added convenience of offering cryptocurrency could even drive repeat visits.

Offering cryptocurrency services creates a new source of passive income for the convenience store owner. It diversifies the revenue streams without requiring much, if any, additional work. DigitalMint provides its convenience store partners with a percentage of the revenue that the kiosk or POS system generates each month. Plus, a cryptocurrency POS system does not take up any retail shelf space, giving the store more room for additional products.

Convenience stores that choose to add cryptocurrency POS services will differentiate themselves from their competition. They will be seen as modern and innovative for offering such a cutting-edge feature at their store, and creating the expectation of offering customers technologically advanced services could drive deeper loyalty to participating stores.

It is not very difficult to add a cryptocurrency POS service to a convenience store. In general, these services can be implemented in one of the following three ways: a lease/landlord agreement between the store and the service provider to rent out floor space in the store for a cryptocurrency ATM; an iPad teller model in which customers conduct cryptocurrency transactions over the counter with an employee's assistance; and an API integration with the convenience store’s existing POS system, which can offer drop-down options for purchasing cryptocurrency.

Convenience stores that add cryptocurrency services for customers will increase their preparedness for the future. Implementing a crypto POS system will enable a smooth transition into a new payment market in the future if it becomes more common for convenience stores and brick-and-mortar retailers to accept cryptocurrency as a form of payment for in-store purchases. If cryptocurrency transactions are the wave of the future, riding the crest now could improve a store’s readiness for that future and the subsequent consumer demand.

Someday, probably sooner than later, cryptocurrency transactions will become as much of a “must-have” at convenience stores as credit cards have been for decades. Convenience stores need to get ahead of this trend and start thinking about integrating cryptocurrency transactions into their POS systems today. By embracing this new payment market and its associated technologies now, convenience stores will attract more customers, improving their bottom line while also preparing for the future.

For reprint and licensing requests for this article, click here.