Cryptocurrency Adoption in B2B Payments: GoodFirms Survey

Updated on :July 23, 2024

ABSTRACT: 

Business-to-business payments or B2B payments, initiated between a buyer and seller of goods or services, can be one-time or recurring. B2B payment transaction processing using traditional methods is often complex and involves several approvals, authenticity, verification, and security of the transactions. The traditional payment options also face fluctuating exchange rates, longer processing times, and inefficient cross-border payment. Moreover, the transaction fees incurred are high, which calls for a modern, centralized, efficient, quick, and secure payment system with lower transaction fees. In this essence, Crypto payment is gaining more popularity among B2B due to its potential and possible applications.

This survey by GoodFirms, titled ‘Cryptocurrency Adoption in B2B Payments, ’ aims to understand the current scale of cryptocurrency adoption by businesses. It also attempts to study the motivation and hurdles while initiating B2B payments with cryptocurrencies.

Introduction

Cryptocurrency is changing money forever. Little did we know that we would reach a point where we could exchange money via the internet without a bank: a peer-to-peer transaction without relying on any go-between that has no power to stop or manipulate the transaction. This technology has emerged as a path-breaker in the business landscape. The novel concept some years back is now gaining momentum, and a sprinting adoption of the technology is currently being witnessed in the business world. 

Interestingly, several embedded finance providers are expanding their Fintech services to integrate business-to-business (B2B) payments and crypto capabilities to support fiat and cryptocurrency transactions. Such developments reinforce the role of crypto in transforming B2B payment infrastructure.

Even Cross-Border B2B Payments are facing friction these days. Incidentally, several eCommerce merchants in the United States have indicated that they are encountering significant problems, including compliance, speed, tax, and others in cross-border transactions. For this reason, crypto-based cross-border solutions are increasingly being embraced by companies looking for an efficient and reliable way to transact international transactions.

JPMorgan is all set with programmable payments through its digital asset and blockchain unit.

Thus, cryptocurrency surely has the potential to grow in the future. However, with the challenges on the way, businesses need to make wise decisions with proper market analysis. 

This research from GoodFirms is an attempt to highlight the advantages of adopting cryptocurrency in B2B payments. It also helps understand the factors that can hamper the wider acceptance of cryptocurrency and the initiatives that can facilitate the further acceptance of cryptocurrency in the future.

Survey Data and Analysis

GoodFirms conducted a survey titled “Cryptocurrency Adoption in B2B Payments” where it queried nearly 530 businesses. Interestingly 78.4% of the businesses belonged to the Software and Services industry while the remaining 21.6% of the respondents are from other industries.

The surveyed businesses were asked if they have adopted cryptocurrency as a mode of B2B transactions. Here is the response for the same;

Adoption of Cryptocurrency for B2B Payments

survey businesses adopting cryptocurrency for business

About 44% of the respondents said that they have used cryptocurrency as a mode of transaction, whereas 56% of businesses have yet to do so. 

There are a number of reasons that make businesses hesitant to opt for cryptocurrency in B2B transactions. Being a comparatively new concept and the risk factor involved in crypto transactions are major reasons for businesses to delay their decision to adopt cryptocurrencies in mainstream business economies.

The businesses that have not yet considered cryptocurrency transactions as their B2B payment option shared their reasons.

survey reasons of not adoptig cryptocurrency

Around 55.9% of the businesses said that the risks associated with cryptocurrency transactions, like volatility, and lack of regulations are a major reason for not opting for cryptocurrency as a mode of transaction.

About 46.1% of the survey participants do not leverage crypto transactions as they have a lack of understanding of the concept, whereas lack of infrastructure is responsible for not adopting cryptocurrency as per 34.8% of the surveyees.

Around 32.7% of the surveyed businesses cited a skill deficit in implementing cryptocurrency transactions, while 28.2% of the business owners said that they are hesitant to adopt cryptocurrency for B2B payments due to security threats.

At its core, Cryptocurrency is a technology based on Cryptographic techniques. Encrypted emails, secured credentials, and anonymous networks are those behind the wider adoption of this technology. Let us further understand this internet money(1).

Purpose of Cryptocurrency for B2B Payments

Businesses that have adopted cryptocurrency use them for a number of transactions. The survey conducted by GoodFirms reveals the major transactions that can be fulfilled by cryptocurrencies.

survey use of cryptocurrency

Cross-border payments topped the list of transactions that can be fulfilled by using these digital currencies. The absence of intermediaries and speedy transactions simplify cross-border payments. About 89.6% of the survey respondents said that they use cryptocurrencies for cross-border payments.

64.9% of the survey participants make vendor payments through cryptocurrencies, whereas around 58.2% of the businesses utilize cryptocurrencies for contractor payouts.

Employee payments are made through cryptocurrencies by 32.5% of the survey participants, while 27.1% of the businesses use cryptocurrencies for domestic payouts.

Types of Cryptocurrencies Used for B2B Payments

survey most likely used cryptocurrencies

As the cryptocurrency market is growing gradually, there has been a rise in the number of cryptocurrency options. Cryptocurrencies are generally classified based on their features and purposes.

The businesses that adopt cryptocurrencies for B2B transactions use the currency that is the most suitable for their business use cases.

The most commonly used cryptocurrencies include Ethereum and Bitcoin. About 76.2% of the businesses most likely use Ethereum, while 54.8% of the businesses go for Bitcoin. 

Tether is the most suitable currency for 36.9% of the surveyed businesses, while 31.3% of the survey participants use Solana.

Nearly 19.5% of the respondents use Binance Coin whereas Litecoin is the currency used by 17.8% of the surveyed businesses. Ripple is used for B2B transactions by 11.4% of the businesses and merely 2.7% of the businesses use Dogecoin.

Reasons to Switch to Cryptocurrencies Over Traditional Methods by B2B Businesses

survey reasons to cosider cryptocurrency as a payment method

There are various reasons that make businesses switch to cryptocurrencies over traditional modes of transactions. The survey participants stated their reasons for adopting cryptocurrency for B2B payments

Acceptance of Cryptocurrency: About 82.2% of businesses have adopted cryptocurrency owing to the growing acceptance of cryptocurrencies by businesses. The wider acceptance of cryptocurrencies promotes its use in major transactions.

Fluctuating Currency Conversion Rates: Nearly 51.8% of the survey participants switched to cryptocurrencies due to the fluctuating currency conversion rates of fiat currency. The traditional currency needs to be converted when cross-border transactions are considered. The currency fluctuation rates make these transactions time-consuming and complex. They can also prove to be expensive at times. Cryptocurrencies do not require to be converted as their values are uniform across the globe. 

More Transaction Fees: The high transaction fees involved in financial transactions are a reason for 47.3% of businesses to opt for cryptocurrency transactions. Traditional financial payments include high transaction fees to process the transactions. Crypto transactions minimize the need for transaction fees, making them cost-effective.

Datazo InfoTech mentioned, Since Bitcoin transactions are public, all parties can view the transaction details and immediately know the status. Cutting out banks saves both the employer and employee money and can be a big win-win for the workforce.”

Curiosity to Progress Towards New Methods: For 43.1% of the businesses, their curiosity to progress towards new methods made them adopt cryptocurrencies for B2B transactions.

Involvement of Intermediaries: About 41.4% of the survey participants said the involvement of intermediaries in traditional transaction methods made them opt for cryptocurrencies. B2B transactions involve intermediaries like banks or other financial institutions, which are removed when transacting with cryptocurrencies.

Lack of Transparency: Lack of transparency is the reason for moving to cryptocurrency transactions, according to 36.5% of the survey respondents. Cryptocurrencies are transparent due to the use of blockchain technology, enabling them to be trustworthy.

Accessibility Limitations: According to 31.8% of the survey participants, accessibility limitations made them opt for cryptocurrency transactions. 

Security Issues: Security issues associated with traditional transactions were the reason for 25.8% of businesses to move to cryptocurrency in B2B transactions. Due to the blockchain framework that backs cryptocurrencies, the transactions are less prone to security breaches.

Slow Transaction Speeds: 21.9% of the survey participants moved to cryptocurrency transactions due to slow transaction speeds. 

Advantages of Cryptocurrency for B2B Payments

A few years back, cryptocurrency was a novel concept. However, businesses have started accepting cryptocurrency in B2B payments now. This is surely because of the benefits that this digital currency offers. The survey respondents of GoodFirms’ survey shared the benefits of cryptocurrency for businesses.

“Cryptocurrency adoption leads to lower transaction costs, elimination of currency conversion, and improved financial inclusion,” said OKQA.

benefits of usig cryptocurrency for your business

Speedy Transactions

Around 75.3% of the survey respondents mentioned speedy transactions as a major benefit of cryptocurrencies.

Cryptocurrencies can be processed at a near-instantaneous pace. Transferring cryptocurrencies from one digital wallet to another is a straightforward process and the transactions get settled in a few minutes. Today Bitcoin wallets(2) and Crypto wallets (3) are rated as the best means to transact cryptocurrencies.

FilePino, Inc. . mentioned, “The adoption of cryptocurrencies in B2B payments has the potential to streamline processes, reduce costs, enhance security, and facilitate global trade on a scale never seen before.” 

B2B payments, especially when cross-border payments are considered may take longer durations owing to the intermediaries and time zone differences. However, cryptocurrency transactions remove these barriers and speed up the transaction.

Enhanced Security

Enhanced security offered by cryptocurrency transactions is one of the many benefits of crypto payment, according to 63.9% of businesses.

While traditional banking systems are more susceptible to fraudulent transactions and security threats, crypto transactions are backed by high security. Powered by technology like blockchain, cryptocurrency is a robust transaction option. 

Owing to the robust framework that cryptocurrencies work on, they are resistant to any security challenges. Blockchain is characterized by a crucial property like immutability that makes sure that data on a blockchain remains unchangeable once it is recorded or processed. It ensures that the reversal of a confirmed transaction is not possible. This feature of blockchain reduces the risk associated with the transaction completion.

Improved Transparency

About 37.2% of the survey respondents believe that cryptocurrency transactions offer improved transparency.

Transparency refers to the accessibility of the operational data of a project. The decentralized structure of a blockchain ensures transparency to every network user. It helps all the network users to track all the transactions in real time. 

Crypton Studio LLC mentioned, “Cryptocurrency transactions are inherently more transparent, as they are recorded on a public ledger that can be easily verified by anyone.”

Since blockchain technology relies on consensus protocols across a network, to add a new block or make any changes, all the participants on the network must agree to it. This improves the integrity of the process. 

As crypto payments are very transparent, vendors, financial analysts, and potential employees could easily see an employer's up-to-date crypto payment history. Indeed, as some places mandate pay transparency in job postings, there may even be laws requiring businesses to make their transactions fully transparent. One way to achieve that transparency is with payments on the blockchain,” mentioned Lasting Dynamics.

Access to the technical information enables investors to understand the project and build trust among them. It is also helpful in analysis before investing in the digital currency.

Simplified Cross-Border Transaction

Simplified cross-border transactions are one of the major benefits of cryptocurrency, shared  89.6% of the surveyees.

The B2B cross-border payments market is forecasted to account for USD 56.1 trillion by 2030.(4

International transactions involve transaction fees when it comes to traditional transaction methods. Cryptocurrencies waive off these charges and simplify cross-border transactions.

Additionally, cryptocurrencies can be used globally without the need to be exchanged. The uniformity of their values, despite the location, makes them a favorite among international businesses to settle their transactions. Moreover, cross-border transactions with cryptocurrencies remove the intermediaries involved in banking transactions.

Future-Proofing Business

Nearly 48.7% of the businesses asserted that crypto transactions can help them future-proof their businesses.

Cryptocurrency has become popular in recent years. With the gradually rising interest of businesses in digital currency, it is here to stay in the future. 

With its unique ability to protect against inflation and other businesses, the rise in the adoption of cryptocurrency will be evident. Adopting cryptocurrency for B2B transactions is set to become a norm and doing it now can help businesses have a competitive advantage. 

quote qarea

Adopting cryptocurrency for businesses will help them future-proof their business for the changing business landscape and stay ahead of their competitors.

Access to Newer Market

According to 54.8% of the survey participants, cryptocurrency adoption in B2B payments can gain them access to newer markets.

The ability of cryptocurrencies to be used globally without any barriers can not only help them ease cross-border transactions but they can also help businesses access newer markets. 

“Access to Unbanked Regions: Cryptocurrencies can provide businesses with access to regions where traditional banking services are limited or unavailable. This can open up new markets and business opportunities,” asserted Unified Infotech.

The use of cryptocurrency does not require forex, which is required for traditional transaction options. Also, cryptocurrency transactions can help open markets where banking systems are not accessible. 

Adopting Automation 

Adopting cryptocurrency for B2B transactions can help them adopt automation, said 28.2% of the survey respondents.

Blockchain technology can help businesses automate their processes more efficiently. With improved traceability across a business network, businesses can adopt automation through cryptocurrency.

The introduction of smart contracts helps minimize human intervention and any other intermediaries to fulfill the contract requirements. 

With the compliance of a set of pre-specified conditions, the next steps can be automatically initiated, speeding up the transactions. 

The global smart contracts market size is expected to reach USD 12.55 billion by 2032.(5)

Challenges With Cryptocurrency Transactions for B2B Payments

Adopting cryptocurrency has certainly gained traction. However, with the challenges associated with adopting cryptocurrency payments, the rate of adoption is slow. Survey participants of the GoodFirms survey shared the challenges they face while using cryptocurrency as a mode of payment.

survey challenges faced with cryptocurrency transactions

Uncertainties With Regulations

According to 79.2% of the respondents, uncertainties with regulations is a major challenge with crypto transactions.

Unlike other transaction modes, cryptocurrency lacks a regulatory framework. This lack of regulations around the use of cryptocurrency by the government leads to a sense of risk among businesses. 

Regulatory uncertainty and volatility in cryptocurrencies are the biggest factors. It might scale once there is clarity/stability in these,” said QSS Technosoft.

The need for comprehensive and clear regulatory guidelines is a major obstacle to adopting cryptocurrency in business transactions. The lack of precise government regulations around blockchain makes it difficult for the widespread adoption of digital currency.

Volatile Prices

Around 53.9% of the survey respondents said that volatile prices of cryptocurrencies pose a challenge for adopting cryptocurrencies in B2B payments.

Cryptocurrencies have the tendency to go up and down in terms of their value in no time. With no regulation from any authoritarian body, the volatility of cryptocurrencies can increase further. The extreme volatility of even the most popular cryptocurrencies might make investors fail to forecast their profitability.

The volatility of the currency as well as distrust, is still too high for typical B2B businesses to consider opening up to crypto payments. We're still in a phase where cryptocurrency is highly associated with scams, and the global trust is not yet built,” said Victoria Digital Marketing.

The fluctuation in the value of cryptocurrencies elevates the risk of investing in them. The volatile prices of cryptocurrency make it difficult to adopt it for business applications.

Lack of Knowledge

Lack of knowledge about cryptocurrencies is a challenge for 21.8% of the surveyees.

Although digital currencies have become the new buzzword, there is still a lack of knowledge about the topic among businesses. The blockchain technology that is the base of cryptocurrencies is a complex concept to understand for individuals. 

Cryptocurrency is virtual money, despite actual money paid in or converted to it.  But because it isn't federally backed or insured, it is purely at the mercy of markets for its value.  As such having crypto money equally a lot in one day could be worthless the next day.  And no matter what, my bills have to be paid and in full; they don't care if you lose your shirt with Bitcoin,” said Williams Web Solutions.

The general awareness about what cryptocurrency is, and how it works is a major hurdle for implementing cryptocurrency as a mode of payment for businesses. Although digital currency adoption has seen considerable growth in recent times, spreading awareness about the concept and its benefits over traditional currency can help the growth of crypto adoption in B2B payments. 

Easy access to tools and online training for crypto transactions can help improve its adoption on a large scale.

Cyber Threats

Potential cyber threats are a major challenge for around 27.3% of the surveyed businesses.

The digital nature of cryptocurrencies makes them vulnerable to a number of security threats. The rising risk of a range of cyber threats like phishing attacks, scams, and hacking is a major obstacle to adopting cryptocurrency in B2B transactions.

Although the decentralized framework of blockchain ensures the privacy and security of the data stored, cyber threats are possible due to the need for smart contracts and transactions to be linked to identities. 

By applying measures like 2-factor authentication, strong passwords, and other security procedures, the risk of cyber threats can be reduced to some extent.  

Limited Acceptance

According to 53.9% of the survey participants, limited acceptance of cryptocurrencies is a major challenge for them.

The adoption of cryptocurrencies in mainstream business is majorly restricted due to the lack of a regulatory framework or volatility of the values. However, the limited acceptance of cryptocurrency by merchants and vendors deter businesses from accepting cryptocurrencies as a mode of transaction.

ORIL stated, “While cryptocurrency can streamline and secure B2B payments, it also introduces challenges such as price volatility, which can complicate financial planning. Additionally, regulatory uncertainty in different countries may pose compliance risks. Lastly, the lack of widespread adoption and understanding can hinder seamless integration with existing financial systems.”

Wider acceptance of cryptocurrencies through government initiatives and spreading awareness regarding cryptocurrencies will help their adoption in B2B transactions.

Factors to Boost Cryptocurrency Adoption for B2B Payments

Cryptocurrency has the potential to grow in the future. However, the rise of cryptocurrency adoption by businesses can be promoted by some factors. The respondents of GoodFirms’ survey shared the factors that can influence their decision to adopt cryptocurrency for B2B transactions.

survey factors that influence the decision of cryptocurrency adoption

Government Initiatives Supporting Cryptocurrency Adoption

Around 72.7% of surveyees stated that government initiatives that support cryptocurrency adoption could help them decide on cryptocurrency adoption.

Cryptocurrencies face the lack of a regulatory framework, which results in failure to build trust among businesses for the technology.

There is no explicit support from the government bodies that can ensure businesses to invest in digital currencies. There is a state of confusion across the globe for a regulatory body for adopting cryptocurrency. Government initiatives that can define regulatory compliance for cryptocurrencies can promote the adoption of cryptocurrencies in mainstream economies.

“If the volatility comes to a halt and the government steps in to regulate cryptocurrency, we will give it a thought,” says Cosmico Studios.

Wider Acceptance of Cryptocurrency

Around 61.8% of the survey participants said wider acceptance of cryptocurrency could influence their decision to adopt cryptocurrency for their business.

Nearly 2352 US businesses accept Bitcoin as per an estimate in 2022.(6)

One of the major challenges for cryptocurrency adoption is the limited acceptance of digital currencies across the globe. The lower acceptance of the cryptocurrency among merchants leads to the failure of the optimum use of the cryptocurrencies.

We have offered all customers to pay with crypto, as it is fast, simple, and very convenient,” said Avivi.

In some developing countries, the adoption of cryptocurrencies is at a very low pace. The wider acceptance of cryptocurrencies can encourage other businesses to adopt cryptocurrency for B2B payments.

Offshore Development Center stated, Businesses and individuals seeking for a better and faster way to make transactions are willing to use crypto as a backup.” 

Increased Need for Cross-Border Payments

Increased need for cross-border payments will fuel the adoption of cryptocurrency, according to 43.6% of the survey participants.

Cross-border payments are made very convenient by cryptocurrencies. Businesses that need to make international payments are more likely to adopt cryptocurrency.

Empex Digital mentioned, “Cryptocurrencies democratize participation in the global financial system as anyone with an internet connection can access and use them2. This is particularly beneficial for businesses in developing economies that may face challenges accessing traditional financial systems.”

The elimination of intermediaries and the need for currency conversion makes cross-border payments very easy through cryptocurrency. Therefore, increased international business or the need for cross-border payments can promote cryptocurrency adoption.

“We have not even considered crypto payments, since clients haven't requested it,” said Lantern Digital.

Improved Security Against Cyber Attacks

Improved security against cyber attacks is a major influential factor in adopting cryptocurrency for 39.5% of businesses.

Cyber attacks and security breaches are major concerns for businesses when considering the adoption of cryptocurrencies for businesses.

The rampant cyber attacks deter businesses from making cryptocurrency transactions for mainstream customers. Improvement in technology resulting in safe transactions can improve the adoption rate of cryptocurrencies for B2B transactions.

Rising Awareness about Cryptocurrency

About 21.4% of businesses mentioned that an increased awareness about cryptocurrency can help them opt for cryptocurrency.

Any new technology faces the challenge of creating trust among users, and the same goes for cryptocurrency.

Moreover, cryptocurrency deals with financial implications. Acceptance of a new technology in the market heavily relies on the awareness of the concept and its benefits for the users. A rising awareness about cryptocurrency and the benefits it can have for the business can help businesses opt for introducing cryptocurrency in their B2B transactions.

“We are educating our clients and helping them onboard web3. We create services and products in web3 for easy onboarding and expansion of web3 space,” said FewerClicks.

Future of Cryptocurrency in B2B Payments

While the adoption of cryptocurrency in mainstream economies has shown speedy growth, it is also proving to be a viable and efficient option for B2B payments. With the rising awareness about the concept of cryptocurrency, compelling benefits, security,  and the maturing growth of the market, the future of cryptocurrency in B2B transactions seems to be bright. Here, GoodFirms attempted to learn what the future of crypto B2B payments appears to be;

survey trends expected to fuel growth of cryptocurrency adoption

Decentralized Finance

Decentralized finance is a trend to look out for in the future, according to 68.9% of the survey participants.

Decentralized finance(DeFi) is a concept that is gaining traction due to several reasons. DeFi is a novel technology that eliminates the need for a centralized bank or institution to carry out financial transactions. 

“The future of cryptocurrency for businesses is nothing short of transformative – a kaleidoscope of decentralized finance, borderless transactions, and unparalleled security. As businesses embrace this digital frontier, they unlock a realm of endless possibilities: from frictionless global trade to democratized access to capital,” stated SUF Digital.

DeFi works on the blockchain framework, with the added advantage of simplifying transactions with crypto. With the help of software that aids financial transactions, DeFi is surely a major future trend of cryptocurrency. 

Decentralized finance allows users to perform almost any transaction supported by a bank, including purchases, loans, borrowing, earning interest, gifts, trading, and more. 

Emergence of Stablecoins

About 56.3% of businesses expect the emergence of stablecoins as a major trend in the cryptocurrency market.

The volatility of cryptocurrencies is a significant drawback that hinders their wider acceptance. The emergence of stablecoins is a solution that can overcome the extreme volatility of certain cryptocurrencies.

Stablecoins are a particular kind of cryptocurrency that offers to maintain a value that is derived from an external reference like fiat currency, gold, or some other financial tool that is stable. The high fluctuation in the value of cryptocurrencies can be easily tackled with the introduction of stablecoins. With the stability in value provided to cryptocurrencies, stablecoins have a pivotal role to play in the future growth of cryptocurrency adoption among businesses. 

Growth of NFTs (Non-Fungible Tokens)

Growth of NFTs will be evident in the future, said 43.8% of the businesses.

Non-fungible tokens or NFTs, are a unique type of digital assets that are powered by blockchain technology. Unlike cryptocurrencies like Bitcoin, an NFT derives its value from its identity. Each NFT is one of its kind and cannot have the same value as another NFT.

While cryptocurrencies are used as a mode of exchange and can be used for trading or spending, NFTs are a symbol of ownership of a digital asset or content, including illustrations, 3D models, animation, and other digital collectibles. 

Shobi Solutions said, The future of cryptocurrency in business looks to be a blend of innovation and integration. As the regulatory landscape becomes clearer, more businesses are likely to adopt cryptocurrency for a variety of uses, potentially leading to broader acceptance and new business models centered around decentralized finance (DeFi) and tokenization.”  

NFTs have a wide range of applications, from empowering artists and creators to allowing users to sell and buy newer digital assets. Such innovative use cases of cryptocurrencies can help a larger implementation of cryptocurrencies in mainstream economies. 

Rising Importance of Sustainability 

The future of cryptocurrency might see a rising importance of sustainability, said 37.5% of the survey participants.

Bitcoin mining requires as much as 149.74 TWh per year which accounts for 0.66% of the world’s energy consumption. Therefore, cryptocurrency mining is an energy-consuming process.(7)

“Some cryptocurrencies, like Bitcoin, use a lot of energy, which isn't great for the environment. These issues could slow down how quickly cryptos are adopted for B2B payments,” said TechStaunch.

The higher energy consumption in Bitcoin mining results in an increased carbon footprint, which raises environmental concerns. To make cryptocurrency acceptance a widespread phenomenon, it is necessary to consider more sustainable cryptocurrency options.  

Following are a few thoughts of the survey responders on the future of cryptocurrency in B2B payments:

“More widespread acceptance, faster cross-border payments; CBDC and central bank acceptance of crypto will free the path for compliance and therefore better regulations due to increased amount of transactions; more investment opportunities.” --IdeaSoft.

“This can be a game-changing solution, which will help businesses to grow.” Quema.

“Cryptocurrencies can enable global payments within a blink of an eye”Biz and Bird.

“Cryptocurrency will take 10% of traditional banking by 2030,”Opus Growth Partners.

“Cryptocurrency will become the main method of payment”April Studio.

quote by bugraptors

“Have a centralized platform, for instance, exchange rates for different countries”Diffco.

“As regulations evolve and technology matures, cryptocurrency-based B2B payments have the potential to streamline global business transactions, reduce costs, and enhance security.” Rocket Systems.

“As regulatory frameworks evolve and consumer confidence in cryptocurrencies grows, businesses will likely increasingly leverage these digital assets for payments, investments, and innovative business models. Overall, the future of cryptocurrency holds the potential to reshape traditional business paradigms and drive economic growth in diverse industries.” Grepix Infotech Pvt Ltd.

How Can Cryptocurrencies Revolutionize B2B Payments?

With the wide range of application use cases and continual advancements in technology, cryptocurrencies can certainly revolutionize B2B payments. GoodFirms surveyed businesses about their views on the revolution that cryptocurrencies can bring about, some of which are mentioned below.  

“It will allow mid-scale businesses to increase the value of projects with small-term investments in crypto.” –Grovention

CleverDev Software said, “By lowering costs, speeding up transactions, and allowing access around the clock across borders, it opens up a new era of financial efficiency. Blockchain technology beefs up security, gets rid of currency exchange fees, and introduces smart contracts for easy automation. Plus, its transparency builds trust and makes it easier for businesses everywhere to take part in the digital economy.”

“It offers the potential to reduce transaction costs, speed up cross-border transfers, and increase accessibility, especially for underserved populations,” said Azilen Technologies.

Carroll Web Development asserted that “If crypto ever becomes standardized and/or regulated, it would make for a great system for global payments. and with the help of automation, B2B payments could be scheduled, monitored, tracked - all while the power of computing and automation software takes care of the actual work of making and receiving crypto-currency payments against invoices, receipts, etc.”

“It can make the receipt and transfer of payments more global and accessible, and give more certainty around receipt of funds.” Scopic.

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Crypto can revolutionize B2B payments globally by offering faster transactions, reduced fees, increased security, and greater transparency,” said Trigma.

Key Findings

  • About 44% of the surveyed businesses have already adopted cryptocurrency for B2B payments, while 56% are yet to leverage.
  • About 55.9% of businesses are not leveraging cryptocurrency for B2B transactions due to the risks associated.
  • The maximum number of survey participants, which accounts for 89.6%, said that they utilize cryptocurrency for cross-border payments.
  • Around 64.9% of businesses use cryptocurrencies for vendor payments.
  • The most commonly used cryptocurrencies for B2B payments are Ethereum and Bitcoin.
  • 82.2% of the businesses switched to cryptocurrency B2B payments due to increased acceptance of cryptocurrency globally.
  • Challenges associated with traditional banking systems, like fluctuating conversion rates, high transaction fees, and involvement of intermediaries are the reasons indicated by the surveyees to switch to crypto payments.
  • Simplified cross-border transactions is one of the major benefits of adopting cryptocurrency for B2B transactions, according to 89.6% of the survey participants.
  • About 75.3% of the surveyees said that they find cryptocurrency transactions for B2B payments beneficial as they are speedy.
  • Uncertainty with the regulation of cryptocurrencies is the major challenge faced by 79.2% of the survey respondents.
  • The future of cryptocurrency in b2b payments will show a rise in decentralized finance(DeFi), according to 68.9% of the respondents.

Conclusion

Cryptocurrencies have grown quite popular recently. Although businesses are still skeptical about the future of digital currencies, the benefits they offer are convincing decision-makers to consider cryptocurrencies as a mode of B2B payments.

The elimination of intermediaries and improved speed of transactions facilitate convenient cross-border transactions. 

planning to adopt cyrptocurrency for your business

Initiatives from governments worldwide to regulate the values of cryptocurrencies and awareness of the concept of cryptocurrencies can boost the acceptance of digital currencies further across the globe.

The emergence of technologies like DeFi, NFTs, and regulatory measures like Stablecoins can help the crypto market have a stable future facilitating smooth B2B payments.

We sincerely thank our Research Partners for their valuable insights.

References:

  1. https://coinmarketcap.com/currencies/internet-money/ 
  2. https://www.goodfirms.co/blog/best-bitcoin-wallets 
  3. https://www.goodfirms.co/blog/top-crypto-wallets 
  4. https://www.fxcintel.com/research/reports/how-big-is-the-b2b-cross-border-payments-market 
  5. https://www.fortunebusinessinsights.com/smart-contracts-market-108635
  6. https://www2.deloitte.com/us/en/pages/audit/articles/corporates-using-crypto.html 
  7. https://ccaf.io/cbnsi/cbeci 

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