Small business crypto guide (part 2):

Next up in the small business crypto guide, we’ll look at the importance of businesses adapting to stay competitive, especially in a world where technology is quickly evolving.

Cryptocurrency is the next step of technological evolution, and learning how to use it now can have major benefits for your small business. That’s the goal of this series: create a small business crypto guide that breaks down everything you need to know about how to accept crypto in your business.

Before we get into the specific technical aspects of setting up crypto payments, let’s take a step back and look at how businesses have adapted to technology and why it’s essential.

Why should businesses learn about crypto?

As a successful entrepreneur, you know what it takes to build a thriving small business. Business owners don’t have it easy, and a large part of their success is determined by their ability to effectively harness new technology.

When it comes to crypto, many people still believe it’s a fad that will eventually die down, so there’s no point in using it in your business.

It’s true that digital currency hasn’t been around for very long compared to other technologies, but it has seen consistent growth since it started, especially in the past few years.

While it’s impossible to predict the future, it’s clear that crypto’s trajectory will keep going up. It definitely has the potential to become a key part of the financial future.

If you maintain the line of thinking that it isn’t worth your time to accept crypto, it could mean you’re missing out on a new way to grow your business and gain an edge over your competition.

By taking the time to learn now with this small business crypto guide, you’re giving yourself a head start if and when crypto shifts into the mainstream.

How businesses have adapted to emerging technology

Credit cards and touchless pay

Many of the technologies we take for granted today started out the same way as crypto – they faced their fair share of skepticism.

For example, take credit cards. The earliest credit cards appeared in the 1920s but weren’t widely used. They were primarily confined to local areas and singular banks. It wasn’t until the 1950s that they began gaining more traction.

In addition, the first Bank of America credit card was “dropped” in a California city unexpectedly. The residents had no idea how the card worked or why they should use it.

Credit cards were initially seen as impractical because not every store accepted them and not every local bank provided them in the first place.

But Bank of America’s credit card was also the first to be licensed for use by other banks, making it the first credit card that could be used nationally. This was a big help to get the credit card industry to take off.

Fast forward to today, and we’re beginning to see contactless pay take off through services like Apple Pay and Google Pay. In 2022, Visa estimated that 20% of all debit and credit card transactions were touchless.

An increasing number of businesses are starting to offer these services. Contactless payment currently account for 50% of transactions globally and it is expected that by 2026, 81% of all consumer credit cards will boast contactless payment technology.

Artificial intelligence (AI)

AI is another technology that has faced some fears and skepticism, but is increasingly being used by businesses to help streamline their processes. Research into AI started in the 1950s.

As the technology developed and became more accurate, it started to play a more prominent role in business. According to Deloitte, 37% of businesses used AI in 2020, an increase of 270% from 2016.

Small businesses employ AI tools in customer chat services on their websites, in their marketing and advertising strategies, and to collect and analyze customer information. In industries that use heavy machinery, AI can even be used to predict when something needs to be fixed before it breaks.

Streaming

Of course, the internet changed many different businesses, but a particularly noticeable shift can be seen in the entertainment industry.

There are many entertainment businesses adapting to a digital strategy, from movies and television to podcasts and music. It also includes live streaming on platforms like YouTube and Twitch.

For video streaming alone, the market size is expected to hit $223.98 billion by 2028. For music, the market is predicted to reach $46.9 billion by 2027.

Many entertainment businesses have realized the value of shifting their physical products and services to digital platforms. Even non-entertainment businesses have realized the value of having a presence on video platforms to boost their content marketing.

Businesses like Netflix that were able to easily pivot and offer their services on streaming platforms or build their own streaming services have successfully adapted to this change in technology.

Examples of companies that have successfully adapted to new technology

Walt Disney company

Aside from Netflix, another company to come out on top in the streaming world is Disney. The launch of its very own streaming platform helped the entertainment giant find success in the digital space – it made $2.4 billion in the first quarter of 2024.

But besides that, they have used technology in unique ways to enhance their products and services. For example, their MagicBand is a wearable device that lets Disney World visitors unlock their hotel rooms, enter the park, and make purchases.

Fast food restaurants

Fast food restaurants like Starbucks, Chipotle, and McDonald’s have adapted to the popularity of mobile devices by developing their own apps.

These are all businesses adapting to their consumer’s preferences by giving them a convenient method of ordering and paying. Apps allow customers to store their card information and pay directly from their phones.

Many also offer points systems and rewards for customer loyalty, which plays on the gamification that mobile users tend to enjoy.

Kodak (fail)

One business that failed to adapt to new technology is Kodak. As camera film started being replaced by digital cameras, Kodak found itself unable to pivot to a digital strategy and ultimately declared bankruptcy in 2013.

Interestingly, Kodak attempted to launch its own crypto coin, the KodakCoin, in 2018. However, this project ultimately failed. Currently, the Kodak company is actually still in business, though they have pivoted to other ventures related to the commercial printing and publishing industries.

Whole Foods

When Amazon bought Whole Foods in 2017, it helped the popular grocer develop an online strategy that satisfied consumers’ desires for a quick, convenient way to shop through their computers or phones.

By shifting to an online shopping strategy in addition to its traditional brick-and-mortar locations, Whole Foods was able to streamline its business and attract a new pool of customers.

How technology can help small businesses in particular

Hopefully, this small business crypto guide has shown you how crucial it is to adapt to new technology. Technology can help small businesses compete with larger businesses, attract more customers, save time and money, and streamline your business.

For example, suppose your small business has always operated as a brick-and-mortar location, and you don’t see the point in creating a website or social media presence. In that case, you’re missing out on a whole new way of gaining customers and staying competitive.

In a world where a mobile experience is so popular, it’s important to adapt to stay relevant. In fact, 2022, it was estimated that mobile devices accounted for 49.78% of all website visits. And in the U.S. alone, the average adult spent 5.5 hours a day on their phones in 2022.

This shows that small businesses need to meet their customers where they’re spending most of their time if they want to stay successful.

Technology can also help small businesses become more efficient. Using tools like AI chatbots, customer relationship management (CRM) software, and marketing automation tools like HubSpot can help businesses streamline certain processes.

Using technology to automate parts of their business can help small business owners save time on repetitive tasks so they can focus on the other aspects of running their business, like developing new products or services or building relationships with their customers.

If you accept crypto in your business, it’s just one more way to harness technology to stay competitive and expand your customer base.

What’s next in the small business crypto guide?

It’s clear technology has constantly been evolving – some believe that right now, crypto is at the point where the internet was when it first began. Businesses adapting to crypto now can get ahead of the game and have a better chance of survival.

In the third part of the small business crypto guide, we’ll dive deeper into the benefits of crypto for your business. Specifically, we’ll look into how moving to accept crypto can help both your customers and employees.