All spheres of social life are constantly evolving. The world economy also did not stand aside. In general, it can be considered one of the engines of progress, because the development of various technologies depends on the economy. This is how the cryptocurrency market, blockchain and other things appeared, on which billions of dollars are now earning. However, entrepreneurs are in no hurry to start accepting payments in digital currency. Why is this happening and how are small and medium-sized businesses responding to the advent of cryptocurrencies?
What stirs up the interest of entrepreneurs in cryptocurrencies? In 2017, absolutely everyone wrote about cryptocurrency, even the media not from the FinTech world. It seemed to many ordinary people that soon it would be possible to pay a lot for travel in public transport or in a supermarket. But 3 years have passed, and the mass distribution of the crypt has not happened. Why?
The first thing that comes to mind is that the business does not see the potential in the crypt. However, this is not the case. Representatives of the Graft Network blockchain payment system interviewed 65 entrepreneurs. Analysts wanted to know what the business expects from the introduction of cryptocurrency payments. The results are as follows:
- 74% of respondents expect an influx of customers and a decrease in commission for acquiring
- 60% of entrepreneurs want to improve the status of the company due to the possibility of paying with cryptocurrency
- 52% think digital currency will increase the average check of customers about
- 50% believe that cryptocurrencies will allow the creation of new loyalty programs
As you can see, the main desire of entrepreneurs is to increase sales and their own prestige in the eyes of customers. Due to the top topic, which is actively promoted in the media, the company can be seen as more innovative. Here again it is worth remembering 2017, when various companies began to accept cryptocurrencies.
In addition, the study showed why entrepreneurs are still not implementing digital currency in any way. Everything is very simple here – there are inconveniences for clients, especially in offline business. Most business owners also want fast cash out and comfortable POS payments.
What problems do cryptocurrency payment providers have?
You should also look at the situation with the introduction of cryptocurrencies from the side of payment providers. This will help the study of the Center for Alternative Finance at the Cambridge University (Cambridge Center for Alternative Finance), which was carried out in 2017. It shows that global operators have a number of significant challenges.
It turned out that the main problem for such companies is maintaining adequate relations with banking institutions and traditional operators of money transfers. The next factor is compliance with all statutory requirements. It involves going through a whole series of bureaucratic procedures, and this often requires significant financial costs. The third problem is low liquidity in the local currency markets.