As the business world continues to evolve, small and medium-sized businesses (SMBs) are embracing new technologies to stay competitive. One of the most significant changes in recent years has been the growing trend of SMBs accepting cryptocurrencies as payment.
This trend marks a break from traditional payment methods, and its importance lies in its potential to offer benefits such as faster and cheaper payment processing, attracting cryptocurrency users, and providing protection against currency fluctuations. According to data by Tarci’s team, an average of 541 SMBs in the US accept new currencies each month.
The adoption of cryptocurrencies by SMBs marks a significant shift in the way businesses conduct transactions, and those who are proactive in exploring this option may find themselves at a distinct advantage in a rapidly evolving marketplace.
The Payment Revolution at a Glance
What made it possible for this trend to happen? It lies in the changing needs of SMBs to compete in a marketplace that’s becoming increasingly digitized. Here are the three most common reasons SMBs are moving toward the payment revolution based on Tarci’s data:
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Increasing Acceptance of Alternative Currency. In today’s rapidly changing business landscape, alternative currencies such as Bitcoins, Altcoins, and other digital currencies are becoming increasingly mainstream. From local pizzerias to major retailers, the acceptance of these currencies as a form of payment is no longer a novelty, but a growing trend that SMBs must take note of to remain competitive.
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Dealing with Slow and Expensive Payments. As the pace of business continues to accelerate, the traditional payment methods used by SMBs are proving to be slow and expensive, hindering their ability to remain competitive. Credit card transactions, in particular, come with hidden costs that can add up quickly. However, adopting digital currencies makes it possible for SMBs to streamline their payment processes and save on transaction fees while offering their customers real-time, low-cost payment options that improve the overall customer experience.
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Race to Stay Relevant. SMBs must stay ahead of the curve to remain competitive in a more tech-saturated economy. To keep pace with larger corporations that are already embracing virtual currencies, SMBs must also consider the benefits of adopting digital currencies to stay relevant in a rapidly changing marketplace. By offering customers a wider range of payment options that align with modern trends, SMBs can differentiate themselves from the competition and establish themselves as leaders in their respective industries.
The biggest factors that drove this digital currency adoption trend include:
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Payment companies like Mastercard and PayPal acceptance of cryptos
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Companies like Tesla buying big crypto
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Consumer demand for crypto payment options and more.
This adoption continues to move forward without any signs of slowing down any time soon. But because the trend is still in its infancy, there are a lot of opportunities for businesses to tailor their products and services and capitalize on this trend.
Navigating the Risks and Rewards of the Payment Revolution
The biggest benefit SMBs receive when opening up to alternative currencies is that they can streamline their payment processes, reduce transaction fees, and offer their customers a more convenient and secure payment option. With the rise of cross-border transactions, digital currencies offer a low-cost, real-time payment solution that can help SMBs expand their customer base and grow their businesses on a global scale.
While there are still challenges to be addressed in the adoption of cryptocurrencies, SMBs that embrace this technology early on can establish themselves as thought leaders and innovators in their respective industries. So, how can we support SMBs in making the most out of alternative payments while managing the risks associated with their complexity?
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Set up insurance and data security to protect against financial loss and cyber fraud. It’s essential to educate SMB clients on the importance of data security and the need for insurance can include implementing secure payment gateways, regularly updating software, and providing training for employees to identify and prevent fraudulent activity.
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Lead SMB clients’ adoption and conversion to new currencies. We can play a critical role in leading your clients’ adoption and conversion to new currencies. This could be giving guidance on selecting the right currency, integrating new payment systems into existing workflows, and ensuring compliance with relevant regulations.
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Display new software, IT solutions, and network infrastructure. We want to showcase the latest tools and technologies that can help SMBs to successfully adopt new currencies–and this would mean everything from payment gateways and POS systems to blockchain technology and secure network infrastructure.
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Examine SMB customers’ preferred payment methods. Whether it’s conducting surveys, analyzing customer data, or providing guidance on the most effective payment methods for different demographics and customer segments, we can help SMBs make informed decisions about which currencies to adopt and how to structure their payment systems.
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Educate SMB customers on the benefits and risks of accepting new currencies. We can provide valuable insights into the benefits and risks of accepting new currencies, including the potential for cost savings, improved security, and expanded customer reach to help SMBs to make informed decisions about whether to adopt new currencies and how to structure their payment systems to mitigate potential risks.
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Collaboration with other service providers to provide a one-stop shop for SMB needs. Because SMBs often require a variety of services to successfully adopt new currencies, including insurance, data security, payment processing, and IT support, we have the opportunity to collaborate with other service providers to offer a one-stop shop for SMB needs.
Help SMBs Stay Ahead of the Curve
Based on what Tarci’s data shows, the adoption of alternative currencies can bring significant benefits to SMBs, including lower costs, improved security, and expanded customer reach. Regardless of the nature of our businesses, helping SMBs continue using multiple currencies will help us as well. By providing education, guidance, and support, we can support SMBs in successfully navigating the adoption process and realizing the benefits of these emerging technologies.
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- Source: https://www.finextra.com/blogposting/23993/breaking-tradition-why-more-smbs-are-saying-yes-to-new-currencies?utm_medium=rssfinextra&utm_source=finextrablogs
