A number of small businesses are embracing cryptocurrency as a method of payment, but hurdles remain in the way of widespread adoption, according to a recent survey.
Cryptocurrencies, such as Bitcoin, are digital currencies protected by cryptography and accounted for using a database technology called blockchain. While cryptocurrencies have grown in prominence and are actively traded by investors, they remain polarizing among small businesses, with proponents praising their ease of transfer and freedom from government and bank intervention and critics emphasizing challenges posed by price volatility.
Online invoicing provider Skynova surveyed 584 small-business owners and managers and found 32% of respondents said their small businesses accepted cryptocurrency payments.
These results roughly mirror an early 2020 survey
commissioned by engineering insurer Hartford Steam Boiler, which found 36% of small and midsize businesses accepted cryptocurrency.
The survey also asked the business leaders to provide their reasons for adopting or rebuffing cryptocurrency as a payment method. For business leaders that have adopted the cryptocurrencies:
49% of respondents said they made the move because they believe it's the currency of the future. Other common reasons included to reach younger generations (44%), because the currency works internationally (43%) and to reach new customers (43%). The survey did shed light on technology barriers with cryptocurrency payment systems. Among small businesses that haven’t adopted cryptocurrency payment systems, a quarter of respondents acknowledged they should accept them but don’t know how. Another 27% said they were either considering accepting cryptocurrency or already planning to accept it.
About 48% of businesses said they “would never accept cryptocurrency.”
Bitcoin was the most popular cryptocurrency to be accepted, with 58% of respondents that accepted some form of cryptocurrency saying they accepted it. Bitcoin Cash (36%), Ethereum (35%) and Litecoin (28%) were the other most popular options.
Skynova also found the “friendliest cities for crypto users in the U.S.,” using data from CoinMap:
The top 15 cities by number of retailers that accept cryptocurrency:
Los Angeles
Boston
Tampa, Florida
Chicago
Atlanta
Houston
Dallas
Newark, New Jersey
New York City
Detroit
Miami
Washington D.C.
San Francisco
Denver
Cleveland
