Cryptocurrency gaining traction, TSG finds

Cryptocurrency is emerging from the shadows, according to a new report, The Crypto Divide, published Oct. 6, 2021 by The Strawhecker Group. Researchers surveyed 600 small business owners about their thoughts on cryptocurrency acceptance and found respondents' perceptions ranged from low awareness to rejection, noted Jared Drieling, senior director of market intelligence and insights at TSG.

"We found that merchants that do not accept crypto have a variety of nuanced reasons," Drieling said. "Some are closed off to the payment method entirely and see it as something only used by criminals. Others had a low awareness of the payment method in general but might be open to it should their customers start asking about it."

Drieling further noted that the 79-page report, which included cryptocurrency basics, key players and prospective opportunities, found that 65 percent of small business owners who accept cryptocurrencies have begun to do so within the past two years. Others in the small and midsize business community who have yet to accept cryptocurrencies fall into three categories: active avoidance, low motivation and low awareness, he stated.

Growing merchant stickiness

Despite slow U.S. cryptocurrency adoption rates, TSG researchers found evidence of growing global cryptocurrency usage and increasing awareness among U.S. adults, which they suggested is further accelerated by mainstream media. Citing a Visa study that found more than $1 billion in the card brand’s crypto-linked cards during the first half of 2021, researchers identified a level of stickiness within the crypto space. For example, 92 percent of merchants who accept cryptocurrencies also own crypto, compared with only 17 percent of merchants who own crypto but do not yet accept it as a method of exchange at their establishments, researchers found.

In addition to proliferating headlines across major media outlets, popular cryptocurrency exchange apps that simplify crypto usage are helping cryptocurrency scale, TSG researchers reported.

The report examines the future of crypto acceptance as well as evolving attitudes about its acceptance, they added. Following are additional report highlights:

• Knowledge seekers: 72 percent of non-crypto accepting SMBs attributed non-acceptance to lack of knowledge.

• Early majority: 64 percent of SMBs who take cryptocurrency mentioned knowing at least one other merchant who also accepts cryptocurrency.

• Revenue doubters: 58 percent of non-crypto accepting SMBs doubted cryptocurrencies had the potential to increase their sales.

• Processing partners: Coinbase Commerce was the most popular crypto-processor in the study, used by 44 percent of currency-accepted SMBs surveyed.

• Risk-averse merchants: Only 16 percent of SMBs feel cryptocurrency is a safer method of payment than credit cards.

• Late majority: Only 10 percent of SMBs in the sample reported accepting cryptocurrency as a method of payment, and only 28 percent of merchants surveyed plan to accept cryptocurrency in the near future.

Additional insights include an overview of the virtual currency landscape from leading cryptocurrency brands, including AlphaBTC, Bank of America, BitPay, BTCPay, Chase, Coinbase, Coingate, CoinPayments, Elavon, FedEx, FIS, Fiserv, Global Payments, GoCoin LibertyX, Mastercard, MoneyGram, NCR, OnlyFans, PayU, Remitly, Ripple Labs, Shopify, Square, Stripe, UATP, Visa, Walmart, Wells Fargo, and Western Union.

Further information about the report and a free infographic on the future of merchant crypto acceptance is available at webview.thestrawgroup.com/the_crypto_divide .

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