The Acceptance of Crypto Currency for B2B Transactions
To date, the vast majority of B2B companies have resisted the use of crypto currency as a form of payment for their products or services.
To date, the vast majority of B2B companies have resisted the use of crypto currency as a form of payment for their products or services. In fact, most recent studies show that only 2% of B2B companies currently accept crypto currency. As for the future, a 2021 survey by “Invoiced” reviled that less than one-third of B2B companies show any interest in accepting crypto currency payments.
So what will potentially drive an increase in acceptance and the use of crypto currency within B2B procurement? A recent survey indicated that cryptocurrencies must offer convenience, provide value appreciation potential, and serve to lower transaction fees to be fully considered as an accepted form of B2B payment.
To better understand the experience of B2B companies, Priority Metrics Group (PMG) recently surveyed companies (within the 2%) that were currently using crypto currency. Of the B2B companies surveyed, 100% were using crypto currency to pay vendors, while 97% were also either currently using of or planning to accept crypto currency for payment. Of those planning to accept crypto currency, 87% indicated that they would begin in the next 6-months. This would indicate that once B2B companies begin to pay with crypto currency, they often follow quickly with the acceptance of crypto currency for payment.
Timeframe on Beginning to Accept Crypto Currency
Based on our survey, B2B companies currently use a fairly wide range of forms of crypto currency, the most popular being Bitcoin, Ethereum and Dogecoin. The forms of crypto currency identified by survey respondents being used today and the frequency of use are indicated in the chart below.
In exploring the primary reasons these B2B “early adopters”, our research results were very consistent with the findings of the survey conducted by Invoiced referenced earlier. The list of primary reasons current B2B users cited as to what most influenced their decision to use crypto currency for B2B transactions includes:
· Desire to try new technology
· Ease and speed of use
· Safe and secure transaction (especially when dealing in foreign countries)
· Low transaction fees
· Supplier and customer requests
· Investment potential
Based on the insight from our survey as well as other previous research into the use of crypto currency for the B2B transactions, it will take more than just hype for the use of crypto currency to accelerate in the B2B verticals. Crypto currency will have to prove that it can offer convenience, provide sustainable value appreciation potential, serve to lower transaction fees, and begin to be asked for as a payment option by fellow B2B sellers and vendors.