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Crypto in Business Practice: No Bitcoin in the Cash Register

The introduction of order in the cryptocurrency market in the European Union was brought about by the Regulation on Markets in Crypto-Assets (Markets in Crypto-Assets – MiCA) as a unique legal framework. In Croatia, the Law on the Implementation of the Regulation on Markets in Crypto-Assets came into force in July 2024, followed by accompanying national rules to ensure user protection and security as well as business openness.

However, payment with cryptocurrencies in Croatia is generally not yet that interesting to citizens, according to some of our interlocutors. For example, Croatian Post, despite a positive business and procedural impression, has not offered the sale or purchase of cryptocurrencies since the end of 2022 due to low citizen interest and does not plan to reintroduce it in its post offices. However, there are different experiences.

Fast and Reliable

In the HGSPOT Group, they state that the introduction of cryptocurrency payments into their business was a natural continuation of following technological and financial trends close to their customers. Given that they deal with the sale of information technology with an emphasis on modern technological solutions, they also enabled cryptocurrency payments for online store users and in eleven of their retail outlets in November 2022.

– To accept cryptocurrency payments, we use the services of Electrocoin’s PayCek platform, a specialized provider of solutions for accepting cryptocurrencies in retail and online sales. This approach has allowed us a simple and secure integration into existing sales and fiscal processes, without additional operational burden for employees, ensuring customers a fast, reliable, and transparent payment process, and it is important to emphasize that there are no fees characteristic of other payment methods, as with card payments.

Stable from the Start

The structure of cryptocurrency payments mostly depends on market trends, the level of acceptance of individual currencies, and their practical application in everyday transactions. In the past year, the most commonly used cryptocurrencies for payments in our country are Bitcoin (BTC) and Ethereum (ETH), while among the more common are stablecoins USDT and USDC. Although cryptocurrencies currently make up a smaller share of total turnover, customer interest in this form of payment exists and has been stable since its introduction – they emphasized in the HGSPOT Group.

They note that the response is particularly positive among customers who are already well acquainted with cryptocurrencies, which is why they have not had significant challenges in executing such transactions so far. Customers who use this payment method, they said, generally understand the process clearly, and any possible ambiguities are resolved quickly and without difficulties. They believe it is important to monitor regulatory changes and that this payment method is clearly, securely, and appropriately regulated by the relevant legal framework.

– Clearer rules facilitate business for merchants, strengthen customer trust, and create a more stable framework for the development of digital finance, so we expect that it will encourage broader application of cryptocurrencies in practice in the long term. We do not perceive cryptocurrencies in the retail environment as a short-term trend, but as a technology that will gradually integrate into the broader system of digital payments.

Over time, the boundary between traditional and digital financial solutions will become less visible, and the emphasis will increasingly shift to the simplicity, security, and speed of transactions. We see cryptocurrencies as part of a broader evolution of different payment options, not as a replacement for existing ones – they assess in the HGSPOT Group.

Gradual Acceptance

Payment with cryptocurrencies in Alpha Luxe Group was introduced in 2020 as a strategic decision, aimed at increasing digital flexibility and adapting to international customers, emphasized Robert Budimir, founder and director of Alpha Luxe Group. He does not view cryptocurrencies as a replacement for traditional financial channels, but as an alternative and additional form of payment within modern and responsible business. They also use the services of the licensed domestic crypto-payment provider Electrocoin in their operations, through whose payment gateway they accept the most common Bitcoin, Ether, and stable cryptocurrencies like USDT and USDC in practice.

– Other leading cryptocurrencies from the provider’s offer are also available. All transactions are immediately converted into euros, completely eliminating the risk of volatility. Cryptocurrencies are currently used on a smaller scale and are still in the phase of gradual acceptance. They are most often used for deposits and initial transactions, although the system is technically and operationally adapted for larger amounts.

The response among users is positive, especially among foreign customers, digital nomads, and tech-savvy clients, but the real estate market remains predominantly reliant on traditional bank transfers, which is why crypto payments currently have the character of an additional option, not the main channel – described Budimir, who assesses his previous experience with cryptocurrencies as positive, stable, and controlled.

Additional Tool

He added that the biggest challenges in the early stages were related to regulatory uncertainty, tax treatment, and accounting clarity, which was resolved in cooperation with a regulated partner, clear internal procedures, and immediate conversion to euros. Therefore, according to him, the MiCA regulation is a crucial step as it clearly positions crypto assets within the regulated European financial system.

– All transactions undergo AML and KYC checks, with internal control and support from the crypto-payment provider, ensuring full compliance with applicable regulations and a high level of security. We see cryptocurrencies as an additional tool in business, not as a replacement for the existing financial system. Their sustainable application is possible only through regulation, transparency, and a responsible approach, which MiCA now clearly defines. Cryptocurrencies in business are an additional tool that provides clients with greater flexibility, but exclusively within a clear, regulated, and transparent framework. The MiCA regulation has brought the necessary legal certainty – said Budimir.

Less Interest

The introduction of cryptocurrency payments in the business of Centar Zlata was motivated by the desire for additional diversification of the customer base, claims Dr. Saša Ivanović, owner and director of Centar Zlata. He states that they have enabled cryptocurrency investors to quickly and easily, at any moment they wish, transfer part of their assets from more volatile cryptocurrencies to more stable forms of investment such as gold, or somewhat more volatile but still tangible silver. According to Ivanović, they can do all this without the need for prior conversion of cryptocurrencies into fiat money, i.e., euros.

– We introduced cryptocurrency payments in 2021, and we use the PayCek service of the Croatian company Electrocoin. Payment is enabled in a larger number of cryptocurrencies, but most often it is Bitcoin and Ethereum. However, payment with cryptocurrencies is not among the most common payment methods. During 2022, we recorded a significantly higher number of cryptocurrency transactions, but recently that interest has gradually decreased. Now we have several such transactions per month, but the average transaction amounts are lower than in previous years.

Our previous experience with using cryptocurrencies in business is positive. The PayCek platform has proven to be very reliable, and we have not had any technical or operational problems so far. The integration of the platform into our existing system was carried out relatively quickly and without major challenges. Regarding the regulatory framework, including the MiCA regulation, since we are already obliged to apply the Law on the Prevention of Money Laundering and Terrorism Financing by the nature of our activities, aligning with the new regulatory requirements is not a major challenge for us – assessed Ivanović.

Long-Term Strategy

Ivanović notes that customers who opt for cryptocurrency payments are generally middle-aged individuals who want to convert part or all of their virtual assets into tangible assets. These are often investors who understand the importance of portfolio diversification, he explains, and want to balance the volatility of cryptocurrencies with more stable investments, such as gold, which they consider safer assets in the long term.

The introduction of cryptocurrency payments is part of Konzum’s long-term strategy of monitoring and introducing technological innovations aimed at improving customer experience and strengthening digital transformation in domestic retail, emphasized Jozo Džakula, director of the IT retail sector mStart at Konzum. Payment with cryptocurrencies at Konzum is also enabled in cooperation with Electrocoin and its PayCek, and customers have access to several of the most commonly represented cryptocurrencies in the market.

– The solution is based on blockchain technology and a decentralized system, ensuring a high level of security and anonymity during payments. When it comes to the regulatory framework, we rely on Electrocoin, which is actively preparing to comply with the MiCA regulation of the European Union. We view cryptocurrency payments as part of a broader spectrum of technological advancements such as various cashless payment methods, Konzum’s SMART stores without cash registers, and the expansion of electronic pricing – concludes Džakula.

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