Eli GrantFriday, Jul 11, 2025 11:43 pm ET

64min read

The retail sector is at a crossroads. As businesses grapple with rising credit card fees—often exceeding 3% of each transaction—some are turning to an unconventional tool: cryptocurrency. AMC and Whole Foods, two iconic retailers, are among the first to experiment with crypto payments, aiming to cut costs and attract a new generation of customers. But beneath the surface, a labyrinth of tax implications and regulatory risks threatens to upend this nascent revolution. For investors, the calculus is stark: crypto could be a growth catalyst for early adopters, but the path is riddled with landmines.

AMC, the movie theater giant, announced in 2023 plans to accept Bitcoin for tickets and concessions by 2024, leveraging third-party platforms to bypass traditional payment processors. The goal? Reduce interchange fees, which cost theaters roughly $150 million annually. Meanwhile, Whole Foods—now fully under Amazon's ownership—has quietly integrated crypto payments via Flexa's SPEDN app, allowing customers to buy groceries using Bitcoin or Ethereum. Unlike AMC, Whole Foods avoids holding crypto directly, instead routing transactions through intermediaries to minimize risk.

This dual strategy highlights the tension between innovation and caution. AMC's bold move positions it as a crypto pioneer, but its stock has lagged peers amid macroeconomic headwinds, suggesting investors are skeptical about the long-term payoff. Whole Foods, by contrast, is experimenting within safer boundaries, using Amazon's scale to absorb costs—a luxury smaller retailers lack.

While merchants may save on credit card fees, they face a new burden: capital gains taxes. When a business accepts crypto, it must track the asset's value at the time of the transaction. If the crypto appreciates, the business owes taxes on the gain—even if it immediately converts the crypto to fiat. For example, if AMC accepts $100 in Bitcoin that's worth $150 at conversion, it faces a $50 capital gain.

This complexity creates operational and financial headaches. Small businesses, already stretched thin, may lack the resources to navigate these rules. Larger players like Amazon, however, could use their infrastructure to streamline compliance—a competitive edge that smaller rivals can't match.

The real growth lies beyond the U.S. In underbanked regions, where 1.7 billion adults lack access to traditional banking, crypto offers a lifeline. Retailers expanding into emerging markets could slash remittance costs and transaction fees, turning crypto into a tool for inclusive growth. For instance, a Panamanian AMC theater accepting crypto might attract customers who rely on digital wallets rather than credit cards.

Investors shouldn't bet on crypto payments alone. Instead, target companies that are to reduce costs holistically. Consider:
1. : Amazon's Amazon One palm recognition system, paired with crypto integrations, exemplifies how tech can streamline payments.
2. : Firms like Flexa, which act as middlemen, could profit as adoption grows—though their valuations are already stretched.
3. : Companies expanding into regions with limited banking access (e.g., Walmart's ventures in Africa) could leverage crypto to dominate untapped markets.

The crypto market's volatility remains a ticking time bomb. A sudden crash could leave businesses holding depreciated assets, incurring losses. Additionally, regulators are still drafting rules: the SEC's stance on stablecoins or the IRS's treatment of micro-transactions could upend strategies overnight. Finally, consumer mistrust lingers—only 2.6% of Americans use crypto for payments, per recent data.

Crypto payments are a double-edged sword. For retailers like AMC and Whole Foods, they're a way to cut costs and experiment with innovation. For investors, the rewards lie in companies that master both the technology and the tax landscape. Focus on firms with scalable blockchain solutions, partnerships with trusted platforms (like Flexa), and exposure to underbanked markets. But remember: diversify. Even as crypto payments grow, they'll remain a niche for years.

In the end, this isn't just about Bitcoin—it's about who can turn disruption into discipline. The next decade will belong to those who do both.