How Crypto Payments Can Benefit SMEs in West Wales

The United Kingdom (UK) has emerged as a leading cryptocurrency market. The UK’s small and medium-sized enterprises (SMEs) have turned to crypto payments to keep up with innovations and changing consumer behaviour. In West Wales, a similar trend could be building up as SMEs gradually adopt crypto payments.

The Trend of Crypto Payments in the UK

According to the Financial Conduct Authority (FCA), 93% of adults in the UK have heard about crypto assets as of December 2024. The high crypto literacy rate places crypto trading as an essential financial market in the UK for individuals and businesses, although the latter focuses more on adopting crypto payments.

Across the UK, not just fintech companies, but e-commerce businesses, local restaurants/pubs, professional services firms, and even charities are now using crypto payments to enhance their efficiency. From automated subscriptions to recurring payments, businesses can make, receive, and track payments using crypto platforms.

Although the pace of crypto adoption is rapid, it is not unexpected. A 2022 survey by Deloitte indicated that nearly 75% of respondents (retailers) planned to accept crypto payments by 2024. Today, UK customers explore bitcoin, ethereum, litecoin, and stablecoins to pay for goods and services, leveraging the speed and security of blockchain technology for local and cross-border transactions.

Benefits of Crypto Payment for Businesses

Crypto payments are gaining ground not because they prove the core qualities of financial transactions: speed, security, and transaction fees. Although traditional payment processors offer rest services, crypto payments retain the edge in various aspects.

With crypto payments, customers and businesses don’t have to pay fees for the same transaction. Crypto transaction fees are typically negligible for large transactions and more affordable for smaller transactions than traditional payments.

Crypto payments offer near-instant transactions, enabling businesses to settle transactions in real time and improve their cash flow. White-label crypto payment solutions can be customised to fit a business’s unique needs and for brand positioning.

The security and transparency that blockchain provides are among the best benefits that crypto payments offer businesses. Crypto transactions are publicly recorded while retaining the privacy and anonymity of all parties, giving businesses the edge in limiting security risks. Since they are irreversible, crypto transactions prevent chargeback fraud, allowing enterprises to initiate refunds only when satisfied.

Examples of British SMEs Adopting Crypto Payments

Bodin is a UK clothing business that made waves in 2019 when it announced that customers could pay with bitcoin, becoming one of the early adopters of crypto payments. Overclockers UK began accepting Bitcoin payments in 2014 and will continue to do so as of 2025.

In West Wales, businesses like West Wales Brewery, Eco-Cabins West Wales, Pembrokeshire Chocolate Farm (Haverfordwest), and West Wales Bikes (Llanelli) accept crypto payments.

Opportunities in Crypto Payments Specific to West Wales

West Wales has a resilient company driven by agriculture, oil and gas processing, tourism, food, and business services. Although the companies serve primarily local customers, they also have foreign clients and engage in cross-border transactions. These are areas where crypto payments impact businesses in West Wales.

Crypto and blockchain technology will benefit the tourism and agricultural sectors. Tourists visiting the region can directly spend crypto using crypto-enabled debit cards, trade, and complete transactions without spending fiat. Businesses can streamline their operations using blockchain smart contracts and monitor supply chains.

Another opportunity in crypto for West Wales companies is gaining access to global markets and bypassing bottlenecks that make international payments difficult. This can help businesses increase their revenue, generate more attention, and attract investors as they grow.

Choosing Crypto Payment Platforms for UK SMEs

Although anyone can make transactions from a crypto wallet, businesses need more structure for controlled access, automation, and tax reporting. This is why choosing the right crypto payment platform is essential for any company.

The qualities to look for include security and infrastructure to handle large payment volumes and traffic. Businesses must also consider the ease of transferring and reading their crypto to fiat. Another factor worth considering is compliance with UK anti-money laundering and KYC requirements.

Potential Challenges Facing Crypto Payments

West Wales businesses may face digital infrastructure and connectivity challenges when deploying crypto payments. Customers prefer fast and stable platforms, and companies that cannot provide the infrastructure for crypto payments may be unable to reap the benefits.

Regulatory uncertainty is another challenge that businesses may face. Although the UK recognises crypto as personal assets, they are not deemed legal tender, and future laws may change this view. Regulatory changes will impact how businesses accept crypto, the taxes they pay, and other aspects of their operations.

Businesses may also face the challenge of educating potential customers on the benefits of using crypto. Most customers still prefer traditional payment methods and may have to be convinced otherwise.

West Wales Businesses are Ripe for Crypto Payments

Companies of all sizes in the UK, especially in West Wales, are still early adopters of crypto payments and can build revenue by adopting the technology. Blockchain-based systems can enhance business operations, help businesses cut waste, maintain efficient workflow, and reach new markets.