According to a survey commissioned by insurer Hartford Steam Boiler (HSB), roughly a third of US SMEs now accept crypto as a valid form of payment. The study, conducted by Zogby Analytics, found that 36% of small and medium-sized enterprises are cryptocurrency-friendly, and 59% of these businesses had previously used cryptocurrency themselves.
The crypto survey
The survey uncovered that newer companies are twice as likely to work with crypto payments and digital assets. 47% of businesses that accept crypto have been around for five years or less, as opposed to 21% of companies older than two decades.
HSB Vice President, Timothy Zeilman, believes that companies enjoy the many benefits that cryptocurrencies are known for – such as faster payments and lower fees. However, they must also take into account several risks, like cyber fraud and computer attacks.
“Cyber criminals follow the money and fraud can be a serious problem. A number of currency exchanges have been hacked or embezzled and millions of dollars were lost. Smaller businesses, especially those starting out, can’t afford to be cheated.”
According to Zeilman, cybercriminals are able to use various methods to breakdown small businesses, including malware infections, phishing, and cyber attacks.
SMEs will also essentially have to deal with it alone in case of crypto fraud. Cryptocurrency exchanges are prone to little regulation, and few government entities can interfere in their processes. In the case of crypto fraud, it’ll be up to the exchange and the business owner to work things out.
So, what does Zeilman recommend?
“Small business owners should learn all they can about the technology before accepting cryptocurrencies. And make sure they have strong data security and insurance to protect against cyber fraud and financial loss.”
75% of the businesses surveys had an annual revenue of under $5 million, and less than 100 workers. 41% of the companies had fewer than 25 employees.
Echoing the interests of the rest of the States
It shouldn’t come as too much of a surprise that small and medium business owners are accepting crypto as payment. In reality, this action echoes the sentiment of roughly half of US citizens.
A survey carried out by Harris Insights, and crypto startup Gem, discovered that 50% of US citizens were inclined to buy Bitcoin. This demonstrates the changing attitude towards cryptocurrency in the US. It’s about time that businesses got on board with what many of their clients are doing. Allowing crypto payments drives adoption, and improves accessibility. Really, there’s no reason why a business should only accept fiat – particularly as regulators set their sights on digital assets.
— Jesse Powell (@jespow) May 13, 2019
Cryptocurrencies are increasing in popularity all over the world – it’s really only a matter of time before the vast majority of businesses accept it. Already many major retailers like Microsoft and Overstock allow crypto as a payment method. Crypto adoption will continue to increase, and soon it won’t be even vaguely uncommon. As we’ve seen, already 36% of SMEs are willing to accept crypto payments – that’s a very good start.
A third of US SMEs now accept crypto, this indicates a change in mainstream sentiment of cryptoassets which could in turn, positively affect the price of major digital assets such as Bitcoin and Ethereum. Buying and trading cryptoassets have become simpler than ever with multi-asset investment platforms such as eToro already facilitating cryptoasset trading. Utilizing eToro’s copy-trading feature, you can copy experienced crypto-traders from all over the world.
What does this mean?
A third of US SMEs now accept crypto payments, showing just how much sentiment is changing in the United States. With many merchants already accepting cryptocurrency payments, it’s time for the rest to catch up. Cryptocurrency is, in many ways, even more convenient for businesses than fiat, but there’s still a level of distrust at play here. It’s time for businesses around the world to explore their options when it comes to crypto payments, or risk being left behind.
So, what does this mean for businesses and crypto enthusiasts alike? More and more SMEs are coming aboard the crypto train, making things vastly more accessible for crypto enthusiasts, both in the US and around the world. As we move forward, it’s more than likely that we’ll see an ever-increasing number of businesses accepting crypto – otherwise they’re definitely going to be left in the past.