A third of small business owners expect cryptocurrency payments to become a reality on the British High Street within two years, according to new research.

Card machine provider Paymentsense surveyed 500 small business owners in the UK, and found that a fifth predicted that cryptocurrency payments would start appearing even sooner, within just one year.

Despite these expectations, the study revealed hesitation amongst SMEs to start accepting the payment method themselves. Only one in ten small business owners already took cryptocurrency payments, while a quarter believed that they would never have mainstream acceptance.

But the recent volatility of Bitcoin prices did not seem to have discouraged SME owners when it came to their own cryptocurrency investments, the study found. Some 59 per cent said they would consider investing in it, while 18 per cent were already doing so.

The research also revealed that other alternative payment methods were establishing a foothold among the UK’s small businesses. Almost half (46 per cent) of respondents accepted alternative currencies, with a quarter involved in schemes such as the Bristol, Liverpool, Brixton and Lewes pound, designed to encourage local spending. A further 15 per cent said they accepted national bartering schemes such as Bartercard, with 11 per cent taking regional gift vouchers.

Guy Moreve, head of marketing at Paymentsense, said: “It’s clear that cryptocurrencies are moving swiftly towards the mainstream. However, small business owners considering cryptocurrency as a payment option should be clear about how they can integrate it with their existing financial arrangements. Will suppliers or staff accept it? Can they pay local and national government agencies with it?

“Also, the value of unregulated cryptocurrency changes fast. This has significant implications for an SME’s revenue security,” he added. “For entrepreneurs in emerging sectors it might be worth the risks involved, but for others in more established or slower moving areas it could be wiser to wait and see how things evolve over the next six to 12 months.”

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