The Visa survey
Cryptocurrency holders want to use their assets to shop, and stores around the world are starting to take notice.
In 2021, a study showed that there is a high demand for cryptocurrency payment capabilities among both crypto holders and non-holders . However, in the same study, 50% of the participants pointed out that there are not enough businesses that accept cryptocurrencies . This may change very soon.
Nearly one in four small and medium-sized businesses (SMBs) that participated in a survey conducted by Visa said they are planning to accept payments in cryptocurrencies such as Bitcoin . In the same study, 73% of respondents said that accepting new forms of digital payment options is a key factor that will affect business growth in 2022 .
The study involved 2,250 small business owners located in nine countries , including the United Arab Emirates, Hong Kong, the United States and Canada. Among these respondents, 82% said they planned to implement a form of digital payment option in 2022 .
The survey also included a consumer section involving 1,500 adults from nine markets. In this section, more than half of the respondents stated that they expect to be completely cashless within 10 years . 41% also indicated that customers had abandoned a purchase in physical stores where digital payments were not available.
The demand for cryptocurrency payments is not limited to small businesses . In a recent Twitter poll by Airbnb CEO Brian Chesky, users expressed that they want the option to pay in crypto when booking on Airbnb.
While most businesses are still learning about crypto payments, one Florida restaurant has already jumped on the bandwagon . The crypto-themed restaurant Crypto Street accepts payments in all digital assets, including memecoins and “shitcoins.”
According to Visa Study:
The Path Forward in 2022 for SMBs
- Building on the 90% of SMBs surveyed who are optimistic about their future, 54% report their business is doing well heading into the new year, up from 46% during summer 2021.
- Digital Payments Are Here to Stay – Even Crypto: 82% of SMBs surveyed plan to accept some form of digital payment in 2022; 73% see acceptance of new forms of payment as essential to their growth.
- Businesses were boosted by e-commerce: Ninety per cent of small businesses surveyed with an online presence attributed their success to increased e-commerce sales efforts, and reported that, on average, more than half of their revenue (52%) came from online channels during the last three months.
- A majority of SMB respondents anticipate their business relying exclusively on digital payments in the future. 64% of survey respondents anticipate being able to make this shift within 10 years, but 41% say it could happen in the next two-and 18% have already gone cashless.
Consumers Set the Tone in 2022
- Toward a Digital Future: More than half of the consumers surveyed (53%) said they plan to go cashless within the next 10 years, 25% said it will happen in the next two years, and 16% are already using only digital payments. One of the top benefits of relying more on digital payments was easier online shopping (47%), followed by less risk of robbery (38%) and convenience (37%).
- In-Real-Life (IRL): The failure to accept digital payment is frequently a dealbreaker – 41% of consumers said they abandoned a purchase in a physical store because digital payments were not accepted, and younger shoppers are more at risk. Gen Z (59%) and Millennials (55%) have not bought anything because they couldn’t pay digitally, significantly higher than Gen X (38%) or Boomers (19%).
- 50% of small businesses plan to increase cross-border sales in 2022 as consumers embrace the global marketplace. 68% of consumers said they are comfortable buying items or services from a company in another country or territory. Among those who are not completely comfortable with international commerce, 57% cited fraud protection typically offered by their credit or debit card provider, such as Visa’s Zero Liability Policy.