Business Are Crypto-Positive?

Approximately two thousand small businesses were interviewed in a recent international survey conducted by VISA. The survey included 9 countries ranging from the United States, Brazil, and Singapore. Among these countries, 25% expressed their willingness to welcome digital currencies as a considerable method of payment in the near future.

Amid the consumer section of the VISA study, more than half of the respondents indicated that they expect to be cash-free within the next decade.

The demand for crypto payments has already extended beyond small businesses and into an array of larger industries. For instance, Airbnb customers voiced their desire to finance their bookings using crypto on a recent Twitter poll shared by CEO Brian Chesky. Results like these demonstrate a change in paradigm toward the innovative technology, which may very well turn into the norm in the times to come.

Businesses Starting To change Their Mind About Crypto?

Not only are businesses accepting payments in digital currencies, but businesses worldwide are also striving for complementary ways to appeal to younger generations. This is because the global labor markets were heavily affected during the pandemic, leaving businesses in need of affordable and accessible labor.

One of the ways in which they have attempted to engage younger workers, who often view crypto as a hedge against legal tender-related inflation, is by introducing crypto-based salaries for their workforce. These types of salaries cater to the recent growth in interest that Gen Zers and Millennials have shown surrounding crypto and NFTs. Compared to previous generations, the latter has had to endure a large discrepancy in wealth transfer due to the increasing generational wealth gap. This has left many to struggle with the transition into contemporary ‘adulthood’ and monetary stability (e.g. buying a house and having a great career).

The challenges to wider adoption

Although cryptocurrencies have been increasing in popularity with retail investors, they are yet to become the preferred payment method for small businesses. This can mostly be attributed to the price volatility that is often experienced in the crypto markets which can leave businesses overly exposed to risk. To overcome this problem, some vendors have started offering crypto payments that automatically get converted into a FIAT currency.

Despite the benefits of offering crypto payments as an option, this niche artist in Canada still struggles to profit from its implementation. This is because most customers still prefer to pay with cash or with credit cards, due to habitual tendencies and general ease of use. Other issues, such as the complexity and the accessibility of crypto wallets, still act as a significant barrier for adoption in the eyes of the wider in-store consumer public.

Online businesses, on the other hand, have experienced a higher degree of implementation than their brick-and-mortar counterparts. This can largely be accredited to their customers’ frequent use of technology, which, in turn, may explain the higher rates of adoption.

So what now?

Although cryptocurrency payments are increasingly being accepted globally, the volatility of the market, the wide-scale use of traditional payment methods, and the overall lack of user-friendly crypto-wallets have been discouraging many businesses, and therefore customers, to view it as a viable payment option. Until it tackles these relevant day-to-day issues, which contemporary services cater to, its full-scale adoption will have to be postponed for at least another few years. In the meantime, however, slow progress is better than no progress.