Cryptocurrencies are getting harder to ignore right now. Websites are jammed with news about the U.S. Securities and Exchange Commission's tacit approval of the first futures-based Bitcoin exchange-traded fund; the largest crypto exchange in the U.S. planning to launch its own NFT marketplace; Bitcoin hitting a new all-time-high; while the entire crypto-sphere market cap exceeds $2.6 trillion.
The crypto industry is expanding exponentially right now, and so is its adoption for payment among small businesses. Its growth was further explored in new research released by small business invoicing and accounting firm Skynova.
Founded in 2011, Skynova conducts a large number of surveys of its client base to identify macro trends affecting the small business sector. Their study issued last month found that nearly a third (32 percent) of the U.S. small business owners they surveyed, currently accept cryptocurrencies as payment.
The survey organizers say this latest study is a follow-up to its first crypto-related research completed earlier this summer regarding small business employees they surveyed and whether or not those workers wanted to be paid in various forms of cryptocurrencies. The researchers said this latest study has a +/- 3 percent margin of error with a 95 percent confidence interval, based on completed questionnaires from more than 580 owners and managers.
Another key finding of this most recent founders' survey, found that their preferred types of programmable money to accept as customer payment in rank order are:
- Bitcoin (58 percent)
- Bitcoin Cash (36 percent)
- Ethereum (35 percent)
- Litecoin (28 percent)
- Binance Coin (24 percent)
It's worth noting that the percentages exceed 100 percent because multiple businesses surveyed accept more than just one cryptocurrency type.
The survey results went on to list the following six reasons as to what or whom were the primary drivers for founders and managers to embrace crypto payments for their small businesses. Again, respondents were asked to give as many reasons as applied to their unique situation.
- Major payment companies such as PayPal and Mastercard adopting cryptos (59 percent)
- Innovative companies such as Tesla making big crypto buys (50 percent)
- Acceptance by competitors was a significant motivator for business owners (46 percent)
- Customer demand for crypto funds as payment options (37 percent)
- Ongoing media reporting and coverage of the cryptocurrency industry (34 percent)
- Social media influencers with huge followings on Twitter, YouTube, and Telegram (32 percent)
It cannot be lost on any small-to-medium-sized business owner that the third-most cited reason for going crypto was to stay ahead, or just keep pace, with competitors who already accept various versions of blockchain-based bucks. If these trends continue, and there's no reason to doubt they won't at least in the short term, it seems that small business adoption of cryptocurrencies is becoming less of a competitive advantage and more about competitive survival.