Exploring the Innovation Decision Process of Merchant Bitcoin Adoption

The purpose of this study was to explore the process of bitcoin adoption among retail merchants. Using diffusion of innovation theory as a framework, 10 merchants participated in separate in-depth interviews each lasting approximately 45 minutes that explored their decision-making process for adopting bitcoin for business use. In addition, four bitcoin experts who have over two years of direct Bitcoin experience with merchants were interviewed separately as a triangulation measure. Using thematic analysis, interviews were analyzed deductively using Roger’s 5 steps of the innovation-decision process and inductively for additional determinants for bitcoin adoption. Analysis revealed that participants decided to adopt bitcoin not only for financial advantages such as low fees, new customer growth, and fraud prevention, but for social purposes. In this regard, many participants were attracted to the idea that bitcoin was a “revolutionary technology” and were early adopters and advocates of the technology. Furthermore, participants viewed bitcoin as an artefact of a social movement. That is, bitcoin, with its blockchain technology, is part of the decentralization of power. As such, bitcoin was considered to have an important role in economic democratization in which marginal populations may become more active participants.