Study: 36% of Small and Medium-Sized US Companies Now Accept Crypto Payments

Around a third of small and medium-sized businesses (SMEs) based in the United States now accept cryptocurrencies as a means of payment for goods and services, according to a study commissioned by the American insurer Hartford Steam Boiler (HSB).

Younger companies are more crypto-friendly

The survey from HSB also revealed that 47% of companies that accept cryptocurrencies have been in business for five years or less — compared to 21% of companies that are more than two decades old.

In general, the study conducted by Zogby Analytics shows that 36% of SMEs are crypto-friendly and 59% of these companies had previously bought cryptocurrencies for their own use.

HSB Vice President Timothy Zeilman argues that companies enjoy the benefits of cryptocurrencies, including faster payments and lower fees. However, there are various risks to consider, especially with regard to cyber fraud and computer attacks.

HSB is up to date in this regard as it offers cyber insurance and services. The manager states:

“Cyber criminals follow the money and fraud can be a serious problem. A number of currency exchanges have been hacked or embezzled and millions of dollars were lost. Smaller businesses, especially those starting out, can’t afford to be cheated.”

According to Zeilman, cybercriminals use various schemes to crack small businesses, including computer attacks, malware infections, and phishing techniques.

Since crypto exchanges are not very regulated, SMEs have to act independently in cases of fraud.

Zeilman recommends:

“Small business owners should learn all they can about the technology before accepting cryptocurrency. And make sure they have strong data security and insurance to protect against cyber fraud and financial loss.”

About the study

The study was commissioned by HSB and carried out by Zogby Analytics in October last year. It includes 509 SMEs across the United States.

75% of the companies surveyed had annual sales of less than $5 million and fewer than 100 employees. The final sample included 41% of companies with less than 25 employees. Zogby reports a confidence level of 95% and an error margin of plus or minus 4.4%.

Interestingly, a survey conducted by the analytics firm Harris Insights and crypto startup Gem found that half of US citizens are inclined to buy Bitcoin. This also shows that the cryptocurrency is becoming increasingly popular in the country.

Author: Marko Vidrih

Featured image credit: Pixabay