As one who has been watching crypto trends, do you think there is any sector that has not welcomed cryptocurrencies? Maybe not one that you could think of. Almost every sector is welcoming digital currencies, and small businesses have not been left out. Can you imagine that by 2022 alone, a quarter of small businesses were planning to adopt crypto, with about 30% claiming that customers had asked if they could transact with such currencies?
Could this be pointing to a new future? Well, if you have such questions and want to know why small businesses are adopting crypto – not just in 2024, but even in the years to come – you have just arrived in the right place.
And who denies the fact that staying up-to-date with such trends can be helpful in the crypto industry, where things change so fast? For instance, you may want to keep checking the price of Bitcoin every now and then to ensure that you make the right investment decisions. In this article, we will narrow down to how small businesses have been adopting cryptocurrencies and uncover some benefits.
Enhancing customer experience
If you have been in business long enough, you will agree that customer experience is the lifeline of any business. It’s all about providing customer-centric products that align with shoppers’ tastes and preferences. For instance, you could have noticed that many businesses are now integrating WhatsApp to enhance customers’ shopping experience. And do you actually know that, according to Get Thematic, about 88% of customers tend to do business again with a brand that offers positive customer experiences?
That is what you want to do with crypto. These digital currencies boast fast and cheap transactions, which are highly valued in today’s world. In fact, if statistics mean anything, Zendesk suggests that more than two-thirds (72%) of customers want an instant service. That is why you have been seeing many small businesses integrating crypto to appeal to such tastes.
Plus, there are just those customers that are tech-savvy – and you want to always ensure that you also cater to their tastes. Such customers often keep up with current tech trends and want to be associated with businesses that welcome such trends. And crypto is definitely one of those technologies that has been making headlines.
According to Exploding Topics, more than 560 million people use crypto worldwide, a sharp increase of about 112 times from 2016. Clearly, the numbers are growing, and businesses that integrate this technology have a great potential to attract shoppers from this large crowd.
The role of financial inclusion
Although the world has become more financially inclusive than it was a few years ago, there is still the need to strengthen the index even more. A recent research revealed that about 76% of the world’s adult population owned a financial account. But what happens to the remaining 24%, especially when they want to do transactions that need them to have bank accounts? That is where technologies like crypto come in, as they do not need you to have a bank account to transact.
It could be one of the reasons why 13% of customers told Reuters that they expected retail stores to offer crypto payments in the coming years. And the good thing with crypto transactions is that you don’t need middlemen. Actually, a study by With Tap revealed that about 82% of merchants resorted to crypto payments because of the elimination of intermediaries.
You can never ignore the place of access in financial inclusion. It’s not just getting affordable financial experiences but also easily accessible ones. Imagine the costs and procedures you have to go through just because you have to do a cross-border transaction.
Crypto, by design, is unrestricted by geographical boundaries, ensuring you can transact in international markets without worrying about the limitations of traditional banking systems. That implies greater and easier access to global clients and suppliers, which only expands your market reach.
Never ignore security
As much as crypto transactions are more secure, that does not mean they can’t be attacked. In fact, a recent study suggested that hackers stole over $1.38 billion worth of crypto by June this year (2024), compared to $657 million during the same time in the previous year. The more threat actors continue to target this sector, the more resilient you should become.
The following strategies can help you strengthen the security of your crypto transactions:
- Adopting multi-factor authentication
- Limiting the use of public Wi-Fi
- Encouraging the use of secure wallets, especially cold wallets
- Regularly auditing smart contracts to detect vulnerabilities
- Regularly upgrading network and forks
Final words
Since the first digital currency was developed in 2009, who would have thought that crypto would be welcomed even in small businesses? But, well, that is exactly what is happening. Small businesses are taking advantage of crypto’s fast speeds, privacy, and security to stay ahead.
Another thing is that customers have varied preferences, and some might prefer crypto payments. If you conduct an analysis and discover such preferences, you will definitely want to tailor your products to remain relevant. And that explains why small businesses have been adopting crypto technology even as the number of crypto users increases. Looking beyond 2024, it seems we will continue to see this trend even more.
