A new survey published by Munich Re subsidiary HSB found that more than 1/3 of SMEs (small and medium-sized enterprises) are accepting cryptocurrencies as a means of payment for their respective physical and digital goods and/or services in the US, while the number is doubled when filtering newer companies that founded in the last couple of years.
The survey, which was a collaborative effort between HSB and Zogby Analytics, indicated that roughly 36% of US SMEs already accept cryptocurrencies, with 59% of those surveyed saying that they also own various cryptos for their own use.
In-depth insights based on a variety of companies revealed that 47% of those accepting cryptos are relatively new businesses up to five years old, in opposition to the 21% acceptance found in old companies that are sometimes more than 20 years old in the game.
Last year, a study conducted by Grayscale spilled that more than 83% of US investors are now interested or already involved with Bitcoin and other cryptocurrencies. SMEs are not necessarily famous for their investing capabilities, yet it seems that they are attracted by the benefits of lower processing fees, faster settlement times, and universal transparency.
HSB’s vice president, Timothy Zeilman said that although the benefits of cryptocurrencies can include lower fees and faster payments, the risks may increase for cyber fraud and computer attacks.
“Cyber criminals follow the money and fraud can be a serious problem,” Zeilman said. “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.”
Now, from my perspective, Zeilman is one of the top heads at HSB, a leading specialty insurer, and provider of inspection, risk management, and IoT services, hence scaring SMEs for potential cyber threats would logically generate him more customers.
On the other hand, it is not completely false that cybercriminals would choose to attack a small company that has not the best defense around, yet has a decent stash of crypto assets somewhere in their digital pockets.
The survey conducted by Zogby Analytics on behalf of HSB subjected 505 SMEs across the US. 75% of the subjected companies had an annual revenue under $5mn and less than 100 employees. (This would be considered a big business in Greece lol).
“Small business owners should learn all they can about the technology before accepting cryptocurrency,” Zeilman adds. “And make sure they have strong data security and insurance to protect against cyber fraud and financial loss.”
Is your business already using crypto for payments? And if yes, are you also paying with crypto in your supply chain, or you just utilize crypto to offer a broader payments method section to your customers? Let me know in the comments below, or feel free to bother me at @rosspeili