Home Business Regulation One-third of American small businesses accept crypto payment - Survey

One-third of American small businesses accept crypto payment – Survey

A survey by HSB has revealed that around 36% of American SMEs accept payment for goods and services in digital fiat currencies.

The survey was released on Wednesday, by Hartford Steam Boiler (HSB), part of German insurance firm Munich Re. The research was carried out on behalf of HSB by International research firm Zogby Analytics in October 2019. It showed that 36 percent of the 505 small and medium-sized enterprises in the survey already allow crypto payments in America.

Outside the fact that these businesses accept digital payments, more than half of them also buy digital currencies as part of their operations.

The survey further revealed that newer American SMEs were more likely to adopt cryptos than businesses of more than 20 years in operation. According to the survey, 47 percent of the crypto adopting businesses were less than five years old with 21 percent of businesses over 20-year old accepting crypto.

SMEs accepting crypto payments get to enjoy many benefits like lower processing fees and faster payments. The risks may increase for cyber fraud and computer attacks. Cyber threats have continued to be a problem for this development.

Timothy Zeilman, vice president for HSB, had much to say about how fraud continues to slow rate at which SMEs accept crypto payment.

Cybercriminals follow the money, and fraud can be a serious problem, Timothy said. Several currency exchanges have been hacked or embezzled, and millions of dollars were lost. Smaller businesses, especially those starting, can’t afford to be cheated.

These cyber thieves now target more small businesses with several strategies. They use sophisticated computer attacks, malware infections spread through simple phishing emails, etc. to dupe business owners.

Smaller businesses also may be targeted by hackers, who infiltrate a company’s data system and divert computing power to record and verify cryptocurrency transactions.

These hackers are known to be persistent as they try to dupe small businesses. However, Timothy advised that Small business owners should learn all they can about the technology before accepting cryptocurrency. He cautioned further that they have strong data security and insurance to protect against cyber fraud and financial loss.

Push for further retail crypto adoption

American crypto companies have continued to foster greater cryptocurrency adoption, especially in the retail market. Abra, a bitcoin wallet provider, enabled 6000 retail outlets under the 9-Eleven franchise in the Philippines to accept virtual currency payments.

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Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism

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