As the holiday season approaches, new trends in gifting are taking shape. A recent survey conducted by the National Cryptocurrency Association (NCA) and PayPal reveals that nearly one in five Americans prefer receiving cryptocurrency over traditional gift cards this season. This shift highlights an emerging opportunity for small business owners to tap into the growing appetite for crypto as a valid form of gifting and payment.

The NCA PayPal Holiday Crypto Report indicates that 17% of respondents would rather receive crypto than a gift card this year. Additionally, 31% believe cryptocurrency gifts are less likely to go unused compared to their gift card counterparts. This rising interest presents a noteworthy opportunity for small businesses looking to stay competitive and cater to evolving consumer preferences.

Crucial Insights for Small Businesses

Among the survey findings, several key advantages of gifting cryptocurrency stand out. A substantial 58% of consumers believe that crypto gifts have the potential to increase in value over time, while 54% appreciate the flexibility and choice that come with using crypto. Another compelling aspect is the reduced risk of lost or expired value—49% of participants prefer digital assets for their ease of storage and management.

Stuart Alderoty, President of the NCA, underscores this changing landscape: “Crypto is a modern take on a classic holiday gift—it’s fast, secure, and can be used or saved with the opportunity to grow in value.” With nearly a quarter of U.S. adults considering or having already gifted cryptocurrency, businesses should evaluate how they can integrate crypto gifting into their services.

Practical Applications for Small Businesses

For small business owners, adopting cryptocurrency can streamline transactions and enhance customer experiences.

1. Gifting Options: The prominent preference for crypto presents a unique chance to offer it as an option. Providing customers the ability to gift cryptocurrencies could serve as a competitive edge, especially among younger audiences.
2. Crypto Payments: The survey shows that 23% of consumers are likely to shop with crypto during this holiday season, with that number climbing to 62% among existing crypto holders. Small businesses can attract these customers by accepting cryptocurrencies as a payment method.
3. Online Platforms: If your business operates online, integrating crypto payment options can expedite transactions and provide greater convenience. This flexibility can lower transaction fees, a factor noted by 36% of survey participants as a significant advantage.

May Zabaneh, Vice President and General Manager of Crypto at PayPal, highlights the appeal: “Crypto makes sending gifts, paying merchants, or managing cross-border transactions faster and easier than ever.” By embracing this trend, small businesses can streamline their operations and improve customer satisfaction.

Potential Challenges to Consider

Despite the bright potential, the transition to offering crypto can be fraught with challenges. A significant portion of the survey respondents—about 38%—admitted they do not fully understand how crypto functions. Additionally, 36% were unaware of how to gift it effectively. This lack of understanding may hinder broader adoption, particularly among older consumers who tend to be more cautious about embracing new technologies.

Business owners need to consider the importance of education when introducing cryptocurrency to their offerings. Offering educational resources about crypto benefits, security, and how to gift it can alleviate concerns and encourage more customers to engage with this new format.

Understanding your customer base is also essential. Younger consumers (ages 18-54) are more excited about the idea of receiving crypto as a gift, with 41% expressing enthusiasm, compared to a mere 9% of older individuals. Addressing this demographic gap is crucial for businesses looking to capitalize on the trend.

To make the transition smoother, businesses can join forces with organizations like the NCA, which aims to demystify cryptocurrency and offer support. By partnering with educational initiatives, small businesses can position themselves as informed leaders in this space.

As the holiday season nears, small business owners have a unique opportunity to adapt to changing consumer preferences by embracing cryptocurrency as an innovative gifting and payment method. The potential is vast, but understanding the challenges and providing educational resources can ensure success in this evolving marketplace.

For further details on the survey findings, visit the original press release here.

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This article, “One in Five Americans Prefer Crypto Over Gift Cards This Holiday Season” was first published on Small Business Trends