You recently had an SMB client ask if they could integrate a new payment method. Or was it two of your clients?
You’re not quite sure, but you’re starting to wonder, what’s going on?
But here’s something that may surprise you more.
There are potentially more SMB clients looking for the same payment integration or new method in the United States every month.
How can we tell?
The Tarci data team conducted extensive research on SMBs. We discovered that 541 SMBs in the US accept new currencies each month. Digital currencies and alternative payment systems are becoming more popular than cash and credit cards.
What does this trend mean for the future of SMB commerce?
What opportunities and risks does it present for any enterprise that serve SMBs with product or services?
Understanding the Payment Revolution
Before you can fully harness the opportunities with the new payment trend, you need to know the vehicle beyond this change. Don’t stress, we have identified some prominent ones:
1. Increasing Acceptance of Alternative Currency
This is not a pipe dream. When you turn on your internet, you will hear the different buzz of Bitcoins, Altcoins, and other digital currencies. But it’s not just a buzz. Customers can get a pizza for bitcoin at places like Helen’s Pizza in New Jersey. Checkouts at stores like Gyft and Jeffersons accept digital currencies as well.
2. Dealing with Slow and Expensive PaymentsThe majority of SMBs are paid with credit cards. This is both traditional and convenient, but it has hidden costs. SMB merchants pay up to 3% of the transaction value to card issuers, card networks, and payment processors. That is after they have to wait a few days for the money to arrive, especially if it is cross-border. SMBs do not have the luxury of tying up their working capital in some way. However, most digital currencies support real-time low-cost payments, particularly for cross-border transactions.
3. Race to Stay RelevantThe most frequently cited reason for SMBs’ rapid multiple currency collection is to keep up with, if not outperform, competitors. Consumers’ preferences are shifting toward digitization. Customers are becoming more technologically savvy and digitally oriented. To keep up with the big corporations that are already investing in virtual currencies, SMBs must start using them as well.
Other drivers of the digital currency adoption trend includes:
- Payment companies like Mastercard and PayPal acceptance of cryptos
- Companies like Tesla buying big crypto
- Consumer demand for crypto payment options and more.
The following section will demonstrate some practical methods for cashing in on the tendency.
Risks and Rewards: Navigating the payment Revolution Landscape
It’s great that SMBs are accepting new currencies and shifting away from traditional dollars in favor of more digital currencies. But how do you navigate these changes as an enterprise that serves the SMB industry?
It may appear that tailoring your product or service to fit the trend is simple, but compliance and technical risks are involved. For example, the law governing cryptocurrency is still complex and varies from place to place.
However, facts derived from reliable data will undoubtedly assist you in successfully navigating the new trend.
There are also geographical and industry differences. Some regions or industries may be resistant to new payment methods. As a result, more data is required to contextualize the trend.
However, here are some ideas for capitalizing on the new payment potential:
- SMBs require insurance and data security to protect against financial loss and cyber fraud.
- Lead your SMB clients’ adoption and conversion to new currencies.
- Display new software, IT solutions, and network infrastructure.
- Examine your SMB customers’ preferred payment methods.
- Educate your SMB customers on the benefits and risks of accepting new currencies.
- Collaboration with other service providers to provide a one-stop shop for SMB needs.
What’s Next For Your Enterprise?
If SMBs continue to use multiple currencies, this is an opportunity for you as an enterprise to stay afloat as well. For example, as an insurance company, you can use data analysis to create precisely the right insurance product to protect SMBs from the risk of experimenting with new currencies.
Tarci is closely monitoring this trend and is happy to share additional data with you to help you stay ahead of the game when it comes to providing your SMB customers with the best products or services tailored to their current needs in terms of insurance, software, education, compliance, and more.
Don’t pass up this chance to expand your business and reach a larger audience.