Nike has steadily grown to become a major influencer when it comes to new fashion trends, lifestyles and street culture. Over the years, we have seen numerous collaborations facilitated by the brand and one can argue that the secret ingredient for the success of these collaborations is accessibility. Given that today’s world utilizes digital currencies such as Bitcoin, a question frequently asked is does Nike accept Bitcoin payments, and will the introduction of Bitcoin increase accessibility? Let’s know Does Nike Accept Bitcoin?
As of the 4th of June 2022, Nike does not accept Bitcoin as one of its payment options. This may come as a shock because ideally, every major brand needs to adapt to the ever-changing business environment in order to attract new customers and enhance sales, but there are fundamental aspects that need to be first considered before introducing a cryptocurrency to effective and sustainable payment systems.
For example, Nike has several payment options that their customers are well accustomed to such as the two major card network processes, Visa and Mastercard, and Apple Pay which makes it easier for Apple users to conveniently use their devices to pay. Additionally, PayPal is an effective payment system used by Nike because it provides users with flexibility, protection and low-cost payment services.
Moving on, it is important to acknowledge that when Bitcoin was introduced in 2009, nobody at that time thought that it would rapidly grow to become the leading cryptocurrency in the digital world, with more than 100 million users today. In addition, the large number of Bitcoin users illustrates that there are some advantages of the digital coin. For example, Bitcoin transactions are known to be fast and easy.
Therefore, there is a possibility that cryptocurrency payments will eventually become an essential element of global brands. Moreover, it is important to visit some of the important factors that need to be envisioned and implemented.
Cryptocurrency infrastructure
Initially, cryptocurrency infrastructure is one of the fundamental aspects that Nike needs to consider if they are planning to integrate Bitcoin as one of their payment options. For Nike, this expansion will need them to identify the required technology and human capital that will ensure that everything is facilitated accordingly. By doing so, the company will minimize the risks of venturing into a new unfamiliar business playground.
Protection and security
For any company, the protection and security of clients are paramount. This is because a customer can be a victim of fraud, phishing scams and data breaches. Considering that bitcoin is a digital coin, Nike accepting Bitcoin as a payment option means that there needs to be additional online security to protect Bitcoin users and their wallets.
Regulatory and legal compliance
To begin with, Nike regulating the usage of Bitcoin seems like a hefty amount of work. The company will need to draft numerous regulations that need to protect both customers and the company in the event of a situation involving cryptocurrency. Notably, Bitcoin and many other cryptocurrencies are not backed by banks or anything that has authority.
Therefore, if a customer’s Bitcoin wallet gets hacked, what measures will the company take, provided that this unfortunate incident occurred between the company, the customer and the network the customer used? Nike will need to be well equipped to legally handle such matters.
All points considered, Nike accepting Bitcoin payments is currently not ideal when one views their successful business model. Of course, there might come a point in the future when the company realizes that they need to introduce a new payment option that will enhance their current system to keep up with the times. However, the administration, risk and sustainability of this project are a lot but most importantly, the decision to introduce this lies entirely with Nike and the next coming years will be interesting for Bitcoin users and tech-savvy individuals.
Frequently asked questions
- If Nike does not accept Bitcoin within five years, will it lose profits and customers?
That is unlikely to happen because of many reasons. Firstly, there will be a number of clients who will be sceptical of having to pay with Bitcoin, because they would rather pay with what they are used to. Secondly, Nike was able to bounce back from the COVID-19 pandemic, which illustrates that the company will keep getting stronger and stronger despite the exclusion of Bitcoin payments.
- In the event that Nike accepts Bitcoin as a payment option, will the digital currency’s volatility affect Nike?
It is very likely that Nike will be affected by Bitcoin if the currency’s current value begins to fluctuate. According to research, the stock price of Nike could decrease if Bitcoin is in a volatile period, and this is mainly because of association. This scenario illustrates the key risk of Bitcoin because the stock price of any company reflects its nature, position and profitability.
