The adoption of cryptocurrency as a regular payment method, along with other fiat/conventional currencies is fast gaining momentum worldwide, both among traders, as well as ordinary individuals. But the million dollar question is, whether crypto can challenge or pose a threat to the so-called ‘heavyweight’ traditional currencies like USD, GBP or EUR. Let’s straightaway get into the available facts, figures, statistics and numbers that tell an encouraging story about the growth of crypto or digital currency as a standard form of payment, and how consumers are slowly accepting it for any kind of transactions.
- Almost $2.6 billion worth of cryptocurrency payments were done through VISA’s crypto-supported credit/debit cards in the first 3 months of 2022, and the numbers are steadily rising, every single day.
- Almost 38% of consumers are of the opinion that digital currencies should be used for making regular payments, and not just for investments.
- Approximately 41% of individuals in the age group of 18-36 years plan to use cryptocurrency in the fiscal 2023-24, with more than 10% saying that they would use digital currency in a regular manner. This clearly shows the consumer cryptocurrency acceptance is at an all-time high, and slated to reach even higher.
- Young guys aged between 18-35 years are quite optimistic, with more than 25% of them declaring that they intend to make payments with cryptocurrencies like Bitcoin (BTC). Litecoin (LTC), Ethereum (ETH), USDT Stablecoin, etc. more frequently in the coming days.
- On the contrary, many consumers worldwide still think of treading the crypto path with extra caution, as it is still in the nascent stage, slowly evolving, shaping and transforming into a standard mode of payment. 50% of the population in the United States, Europe and Asia think it to be a risky proposition, while 35% believe that this risk will prevent cryptocurrency from becoming a mainstream form of payment, along with traditional currencies.
- As per a recent study conducted by a financial research establishment, 56% of global consumers are more likely to transact with a shop, store, business or merchant that accepts digital currencies, which is an encouraging sign.
- According to a latest survey, more than 33% of consumers have said they would prefer making payments with crypto, while almost 25% said they would consider transferring money to friends and family, using cryptocurrency exchanges.
- A new study conducted among 1000 people across 22 nations in the Latin America region, North America. Asia-Pacific, Europe, Middle East and Africa revealed that people in the LATAM, APAC & Middle-Eastern regions were more positive about cryptocurrency and blockchain technology. They were ready to accept it as a new form of payment and transactions.
Why an Increasing Number of Global Consumers Prefer Crypto?
It is now a fact that the consumer acceptance of crypto and other federal/government sponsored digital currencies are slowly on the rise, due to factors like ease-of-use, convenience, security, cost-effectiveness and instant payments. Let’s understand the other factors, which have contributed towards the high acceptance levels of crypto among global consumers.
- Ease of Use & Safety – A majority of people interviewed and surveyed said that cryptocurrency transactions offered speed, transparency, security, etc. making it a preferred online payment option, instead of credit/debit cards or fiat money. However, most of the consumers stated that low transaction fee to be one of the primary reasons for motivating them to use digital currencies. It is because a majority of payments that are processed are domestic, and domestic payments are either free of cost or extremely low. The only reason why cryptocurrencies are still yet to enter the mainstream is because of the uncertainties involved, which clearly shows in the overall market trend and statistics.
- Reduced Interest in Fiat Currencies – In all established and emerging economies, the risk of fiat currency devaluation is somewhat helping cryptocurrency to emerge as a standard form of payment. And why not, when remittance payments and business transactions are highly cost-effective, it makes sense to adopt this new digital currency form, which is acting as a great cost-saver for small businesses, traders, investors, merchants and ordinary individuals. As the usage of crypto is growing with every passing day, so also its reputation as a ‘cost-saver’ is making things look brighter in the future.
- Exclusiveness of Cryptocurrencies – It is a fact that a cryptocurrency payment provides a sense of exclusivity to the newer generation of consumers that want to live with and by technology. It gives them an ‘exclusive experience’, while shopping for certain goods and making payments at restaurants, cafes, movie theaters and convenience stores. Almost 40-42% of first-time consumers who paid with Bitcoin (BTC) or Ethereum (ETH), were of the opinion that it is certainly a value proposition.
Crypto definitely has the potential to significantly transform the digital payments ecosystem, as the overall consumer acceptance for crypto is growing at a healthy rate. If more people start using BTC and ETH as a standard currency, instead of thinking of solely investing in them, the future of crypto payments is bound to be exciting.
Even though cryptocurrency isn’t a mainsterm payment method yet, the present statistics regarding customer interest, usage, acceptance and availability would soon make it a standard payment option. The main advantages are anonymity, reduced fees and no government interference. Here are some indicators that show the increased acceptance of cryptocurrency payments.
- Increased use of Stablecoins (USDT Tether).
- Enhanced regulatory clarity.
- Reduced volatility and improved stability for building confidence among the public.
- Wider acceptance by traders, merchants and Shopify stores.
- Acceptance by retail banks
- Governmental insurance, and some more.
All the above-mentioned indicators, statistics and reviews clearly point out that cryptocurrencies such as Bitcoin, Litecoin, Dogecoin and Ethereum are offering consumers a new way to purchase goods & services, and make easy payments in a secure way. The aspect of anonymity in transactions is one important factor that is spearheading the usage and acceptance of digital currencies for making discrete purchases. It is bound to expand in the coming years, with both direct & indirect consumer acceptance. Overall, a broader customer usage and bigger merchant acceptance is required for an increased adoption of crypto, as a mode of payment.
