Ever since Bitcoin hit its all-time high of $69,000 a few weeks ago, all eyes have been on crypto – especially those of small business owners, as they consider how to hop on the crypto bandwagon. According to recent research from consulting firm Skynova, small businesses are adopting cryptocurrencies faster than you may think.
Their recent “Accepting Bitcoin” study found that nearly a third (32 percent) of the 584 U.S. small business owners surveyed, currently accept cryptocurrencies as payment. The survey results went on to list the following six reasons as to what or whom were the primary drivers for founders to embrace crypto payments for their small businesses. The respondents were asked to give as many reasons as applied to their unique situation.
- Major payment companies such as PayPal and Mastercard adopting cryptos (59 percent)
- Innovative companies such as Tesla making big crypto buys (50 percent)
- Acceptance by competitors was a significant motivator for business owners (46 percent)
- Customer demand for crypto funds as payment options (37 percent)
- Ongoing media reporting and coverage of the cryptocurrency industry (34 percent)
- Social media influencers with huge followings on Twitter, YouTube, and Telegram (32 percent)
Of particular note, the third bullet above shows that 46 percent of business owners accept crypto because their competitors do. These findings suggest that crypto adoption is becoming less about competitive advantage and more about competitive survival.
That’s one of the reasons behind a new Coinbase sponsored campaign to bolster small businesses adoption of cryptocurrencies. The program is called #WeAcceptCrypto, and it’s an effort to raise awareness of small businesses that accept cryptocurrency as a form of payment.
Here’s how it works, based on Coinbase’s announcement of the program on Wednesday:
- If you own or work at a small business that accepts crypto payments:
- You can post on Instagram, Instagram Stories, or Twitter with a picture of your business and tag it with #weacceptcrypto
- Coinbase may feature your business on one of its social media platforms
- Coinbase will send link vida direct message to the first 1,000 businesses who post using the hashtag. Use the link to provide your shipping information and Coinbase will send you a complimentary window sticker for your business, pictured below.
While a window decal might not be much, it is a visual way to differentiate your business from competitors and could attract crypto users into your storefront who might not have entered otherwise. In this day and age, every little bit helps – especially for small businesses.
On The Flipside
- Coinbase runs a small business payment solution called “Coinbase Commerce,” which is a separate business unit from its crypto exchange and crypto wallet revenue streams.
- Store owners pay 1% for every crypto payment processed, but that’s still less than the 2.5% – 3.5% fee for each customer payment by credit card.
- While this campaign is clearly a marketing attempt to raise crypto awareness among shoppers, it’s equally focused on raising awareness among business owners to try the Coinbase Commerce solution.
Why You Should Care?
This marketing campaign is a solid idea that strives to elevate awareness of cryptocurrencies among both shoppers and merchants – which is a brilliant idea. Both sides of the retail transaction need to embrace crypto to advance adoption. This is another good step in that direction.