Hartford Steam Boiler (HSB) nationwide survey reveals that 36 percent of U.S. small and medium-sized businesses accept cryptocurrency as payments for their goods and services. This percentage is quite impressive given the volatile nature of these assets and the downtrend the crypto market has faced in the past year. Nonetheless, the frictionless and borderless payment coupled with speed, offered by cryptocurrencies are some of the reasons behind their high adoption.
HSB’s Survey Shows Heightened Adoption of Cryptocurrencies
HSB after concluding its nationwide survey revealed that at least one-third of U.S. SMEs accept cryptocurrencies as payments for their goods and services. Out of this number, 59 percent purchase cryptocurrency for their own use. Also, 47 percent of these businesses have been operating for five years or less, while 21 percent have been functional for over 20 years.
Based on this data, it shows how businesses are leaning closer to digital payments instead of fiat. Cryptocurrency, for instance, offers borderless payments that ensure customers irrespective of where they are, can make payments seamlessly. And the same applies to individuals who are unable to access financial services. All they need, is an internet connection, smartphone, and they can make payments online.
That being the case, businesses have found a need to adopt a system of payment that is not tied to banks or a central authority as is the case of PayPal. There are also no cases of chargebacks which has been evident time and again with other payment methods. This ensures that businesses do not procure losses in the long run.
And most importantly, the speed of cryptocurrency transactions has made them a useful tool for businesses. Digital assets like Ripple (XRP) boasts of transaction speed as fast as 3 seconds. The same applies to crypto-assets like Bitcoin which can be transferred over the lighting network to ensure speedier payments.
Companies That Accept Crypto Payments
Real-world uses cases, where companies around the world have adopted crypto payments, are numerous. For starters, Overstocks, an American internet retailer accepts Bitcoin. Online encyclopedia Wikipedia is also accepting Bitcoin, Bitcoin Cash, and Ethereum for donations. Microsoft allows games, movies, and apps to be paid for on its Windows and Xbox store using Bitcoin.
Social media giant Facebook also revealed its intention to launch Libra, a global cryptocurrency to facilitate payments. While these are large companies in the industry, it is worth noting that they have found a need to enable their customers to make payments easily, which is now the case of small and medium businesses.