Technology for MSMEs: SMEs see accepting new forms of payments as essential to their business growth, according to the study.
Technology for MSMEs: Although the adoption of cryptocurrency among Indian small businesses may seem a remote possibility, at the moment, small and medium businesses in many other countries are looking to get comfortable with the crypto side. Indeed, in 2022, SMEs across nine markets – Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates, and the US – will explore crypto to accept payments. Based on a study of 2,250 small business owners in these markets published by card company Visa on Wednesday, 24 percent (540) of small and medium businesses said they plan to accept digital currencies such as the cryptocurrency Bitcoin.
Moreover, 59 percent of small businesses said they plan to switch to using only digital payments within the next two years or are already cashless, according to a study titled Visa Global Back to Business Study – 2022 SMB Outlook.
“Bitcoin is used to pay without any intervention from banks and small and medium businesses can benefit from crypto payments because it is less complicated than banking transactions. It is fast and can help companies access international markets digitally. As some companies accept payments in cryptocurrency, their sales may increase Also because crypto investors prefer those who accept cryptocurrencies. Blockchain and crypto are the latest technologies that are not widely accepted. Small and medium businesses can take advantage of the first mover advantage here to attract more customers and conduct hassle-free transactions,” said Neha Nagar, CEO and Founder of TaxationHelp.in for Financial Express Online.
Also Read: Ex-Finance Minister Subhash Garg proposes 3 laws to regulate crypto market in India
The willingness among small and medium-sized businesses to adopt cryptocurrencies indicates the increasing mainstream adoption of virtual currencies in the payment world. Globally, companies such as Mastercard, Coca Cola, Axa Insurance, Tesla, Starbucks, PayPal, and many other companies other than Visa are said to have been experimenting with crypto payments. According to the study, 82 percent of small and medium-sized businesses surveyed plan to accept some form of digital option in 2022, and 73 percent see accepting new forms of payments as key to their business growth.
“Some cryptocurrencies are being accepted as tokens that customers can use to pay sellers for their goods and services. Moreover, the acceptance of cryptocurrencies by giants like Microsoft has only added credibility to it. The biggest paradigm shift we may see in the future is the increased demand for cryptocurrency trading by customers. The only problem with accepting cryptocurrencies as payment is the volatility that comes with it that every business, small or Great, find a solution to it.
Also, encryption is an irreversible settlement method like card transactions. “The rate of card fraud has a huge impact on the revenue of small merchants when they transact online. Kumar Gaurav, founder and CEO of cryptocurrency exchange Cashaa, told Financial Express Online that such fear is nothing in crypto as there is no such thing as a chargeback present. in encryption.
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In India, the adoption of cryptocurrencies among small businesses also depends on the regulatory environment which remains uncertain even as the government aims to regulate the sector by banning private cryptocurrencies. Apart from the regulatory framework, adoption will also depend on technical capabilities, level of adoption, awareness about deep new age technologies including blockchain and crypto apart from artificial intelligence, machine learning, IoT, among others. Currently, the level of technology adoption and awareness among companies for various sectors including manufacturing, supply chain, recruitment, exports, etc., needs to be greatly improved for these companies to believe in cryptocurrencies.
As part of its crypto efforts, in December last year Visa launched its own crypto advisory service – Global Crypto Advisory Practice for its clients and partners such as financial institutions including banks. The offer was intended to help companies “assess the crypto opportunity, develop tangible strategies, and pilot new user experiences and innovations such as crypto reward programs and integrated digital consumer wallets with central bank digital currencies (CBDC),” Visa said. In July, the company announced a partnership with 50 cryptocurrency platforms to launch card programs that make it easy to convert and spend digital currency at 70 million merchants globally.
The suggestions/recommendations about cryptocurrencies in this story are provided by the respective commenter. Financial Express Online is not responsible for their advice. Please consult your financial advisor before dealing/investing in cryptocurrency.
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