Gaining new customers and eliminating middlemen are the top two reasons why merchants are interested in accepting cryptocurrency or expanding their cryptocurrency payments options, according to “Paying with Cryptocurrency,” a PYMNTS and BitPay collaboration based on a survey of 2,334 consumers and 202 merchants.
Get the report: Paying with Cryptocurrency
The survey found that 85% of merchants say the ability to gain new customers is a reason for their interest in accepting crypto at the checkout, and 82% say the same about the ability to eliminate middlemen.
Another key reason for their interest is a better cross-border transaction experience, which is cited by 60% of the merchants surveyed.
These motivating factors change among businesses of different sizes.
Merchants in the smallest revenue category identified in the report — those with revenue under $250 million — are most interested in a better cross-border transaction experience.
Sixty percent of these firms say that is a reason for their interest in accepting crypto at checkout.
The next most common reasons cited by these merchants are the ability to gain new customers, the ability to eliminate middlemen and a reduction in declined transactions. Each of those reasons is cited by 40% of the merchants in the smallest revenue category.
Among the merchants in the two largest revenue categories, on the other hand, the ability to gain new customers and the ability to eliminate middlemen are the top motivations, with a better cross-border transaction experience being only the third-most cited reason for their interest in accepting crypto at checkout.
At the same time, most merchants recognize that adopting crypto as a payment method and expanding its usage will call upon them to overcome some significant obstacles.
Some of the key factors preventing merchants from accepting cryptocurrency are difficulties implementing cryptocurrency wallets, cryptocurrency volatility and difficulties in tracking payments. These reasons are cited by 68%, 66% and 56%, respectively, of the merchants that do not accept crypto.