Technology

How do consumers and merchants view the use of cryptocurrencies as a means of payment?

Although the interest of the general public in cryptocurrencies continues to grow, their adoption rate remains relatively low so far. It cannot be denied that the adoption of cryptocurrencies for retail and commercial transactions will become one of the most important factors in their adoption and allow their use to reach a critical threshold. In this context, one of the main payment processors in the crypto market, BitPay, conducted a survey to determine how consumers and merchants approach the use of cryptocurrencies as a means of payment, their advantages and disadvantages. This survey was conducted among 2,334 consumers and 202 merchants in collaboration with PYMNTS, and the results are presented in a report titled Cryptocurrency Payments: What Consumers and Merchants Expect from Digital Currencies.

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At the consumer level

The percentage of consumers who own or currently own cryptocurrencies increased from 16% in 2020 to 23% in 2021. About 30% of users who own cryptocurrencies reserve them mainly for purchases, and 50% of them have purchased cryptocurrencies for investment purposes. However, in the current difficult conditions for the cryptocurrency market, which have affected the valuation of all assets, the impact on investment levels must be closely monitored.

Bitcoin remains the most popular digital currency among users, with 12% of surveyed consumers holding it. Ethereum is the second preferred digital currency among consumers, with 6.8% of surveyed users claiming to own ETH at the time of the survey.

Assets owned by users, PYMNTS.com and BitPay

At the seller level

Retailers with high turnover are more likely to accept cryptocurrencies as a means of payment: in fact, 85% of companies with a turnover of more than $1 billion a year said they want to integrate cryptocurrencies to attract new customers. Only 23% of retailers with annual sales between $250 million and $1 billion accept cryptocurrency for their purchases.

Most cryptocurrency purchases are made using digital wallets such as PayPal and Venmo. Only 23% of them say they accept payments through native crypto wallets (Coinbase or Crypto.com wallet), which provide direct access to consumer funds. 95% of companies that currently accept cryptocurrency as a payment method plan to innovate or expand their payment platforms and capabilities.

One of the reasons why merchants accept cryptocurrencies is the size of the fees: 70% of merchants indicated that one of the advantages offered by cryptocurrencies is the lower level of transaction processing fees compared to other payment methods. Merchants typically have to pay around 1% to process cryptocurrency transactions, which is below the average 1.5% to 3.5% fees charged by processors for credit cards and other payment methods. Another reason cited by a large percentage of sellers (81%) is the ability to eliminate intermediaries. Some also noted the ease of processing and the experience of cross-border transactions (59.6%). And finally, the ability to attract new customers is also presented by the interviewees as a decisive factor in the integration of cryptocurrencies as a means of payment.

Reasons Merchants Accept Cryptocurrencies, PYMNTS.com and BitPay.

Disadvantages of cryptocurrencies

Despite all the advantages of cryptocurrencies, most merchants recognize that their adoption as a payment method and the development of their use will require them to overcome significant obstacles. Among merchants who refuse to integrate cryptocurrencies into their payment methods, 68% indicated that problems with integrating wallets into their existing infrastructure were the main factor that influenced their decision. 66% also mentioned the volatility of cryptocurrencies, while 56% cited difficulty tracking payments.

The number of consumers and merchants using cryptocurrencies is growing. Each group learned to enjoy the unique benefits offered by crypto assets. Thus, experience and training in the use and acceptance of cryptocurrencies as a means of payment can pave the way for a new stage of their growth.

Follow our affiliate links:

  • To buy cryptocurrency in the SEPA zone, Europe and French citizens, visit Coinhouse.
  • To buy cryptocurrency in Canada, visit Bitbuy
  • To generate interest in your bitcoins, go to the BlockFi website.
  • To secure or store your cryptocurrencies, purchase Ledger or Trezor wallets.
  • To trade crypto anonymously, install the NordVPN app.

To invest in cryptocurrency or masternode mining:

To accumulate coins while playing:

  • In poker on the gaming platform CoinPoker
  • To global fantasy football on the Sorare platform

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