Cryptocurrency usage is increasing worldwide, and recent consumers surveys show that most U.S. adults are now at least somewhat familiar with the term. Despite growing consumer enthusiasm, aside from exploration in the crypto industry by larger enterprise-level merchants, little information is available showing the perspective of small businesses and their sentiment regarding cryptocurrency acceptance.
To examine their attitudes toward cryptocurrency, The Strawhecker Group (TSG) conducted a survey of nearly 600 small business owners in the U.S. Results from the survey showed that most merchants still do not accept cryptocurrencies at their place of business in exchange for goods and services – less than one in ten surveyed.
The complete findings, an overview of trends in merchant crypto acceptance, and profiles of popular crypto processors, can be found in the firm’s new eReport The Crypto Divide.
However, TSG found that acceptance is gaining traction; 65% of small businesses who reported taking cryptocurrency just started accepting the payment method in the past two years. Related findings point to a level of ‘stickiness’ within the crypto space, as 92% of merchants who accept cryptocurrencies also reported owning crypto as a store of value, while only 17% of merchants who do not accept cryptocurrencies own crypto themselves.
A thematic analysis of those who do not currently accept cryptocurrency illustrated three key themes: active avoidance, low motivation to adopt, and low awareness. Only 28% of merchants reported planning to accept cryptocurrency in the future, indicating that acceptance at the current point in time is not a widespread priority.
"We found that merchants that do not accept crypto have a variety of nuanced reasons,"
said Jared Drieling, Senior Director of Market Intelligence and Insights at TSG.
"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."