Cryptocurrencies are making headlines, fueled by huge fluctuations in worth and high-profile curiosity from celebrities who’re fanatics. These components — in addition to the worry of lacking out (FOMO) — have prompted extra customers and companies alike to embrace cryptocurrencies, and even governments are actually contemplating laws and regulation for digital belongings corresponding to together with bitcoin and stablecoins. Cryptocurrencies are additionally gaining recognition as customers determine them as a fee technique for a variety of services, each on-line and on the level of sale.
PYMNTS’ analysis finds that two-thirds of customers who held cryptocurrencies bought them to make transactions, and one other 53 p.c bought them due to FOMO, which is up from 32 p.c over earlier ranges. In relation to making purchases, 93 p.c of cryptocurrency customers would think about using cryptocurrency sooner or later, and even 59 p.c of those that have by no means held cryptocurrency are inquisitive about doing so.
The Cryptocurrency Payments Playbook: Cryptocurrencies Gain Momentum As A Payment Option, a PYMNTS and BitPay collaboration, examines U.S. customers’ present curiosity in and future plans to personal cryptocurrency and use it to make funds. The Playbook analyzes a census-balanced survey of 8,008 U.S. customers who have been present and former cryptocurrency house owners and nonowners between Feb. 8 and Feb. 23, 2021, to realize a complete overview of how they used cryptocurrency to make funds.
Safety, privateness and anonymity are well-known and well-marketed advantages of blockchain, the decentralized distributed digital ledger expertise that’s foundational to cryptocurrency. It stands to motive that 60 p.c of cryptocurrency customers are “very” or “extraordinarily” inquisitive about utilizing cryptocurrency to make on-line purchases as a result of they assume these transactions are extra personal or safe. This share will increase to 69 p.c amongst holders who’ve already made purchases with cryptocurrency, and it shrinks to 49 p.c amongst holders who haven’t made purchases with cryptocurrencies. Twenty-three of cryptocurrency nonholders can be “very” or “extraordinarily” inquisitive about utilizing it to make extra personal or safe on-line funds, and 63 p.c of holders who purchased cryptocurrency as an funding can be extremely inquisitive about utilizing it to make on-line purchases which are extra personal or safe.
Causes for utilizing cryptocurrency to make purchases differ relying on the kind of transaction. Cryptocurrency’s potential to remove middlemen can clarify some holders’ curiosity in utilizing it for actual property purchases, for instance, whereas the potential for safer and personal transactions probably motivates purchases within the monetary providers or eCommerce sectors. Forty-five p.c of customers who would think about buying monetary providers with cryptocurrency say it might make transactions extra personal and 42 p.c say it might make their monetary transactions safer.
PYMNTS’ analysis additionally reveals that retailers and types can provide reductions and rewards to cryptocurrency customers as highly effective incentives. This discovering exhibits that buyers count on the perks that conventional card issuers have been providing for years. Our information exhibits that 59 p.c of present or former cryptocurrency holders can be “very” or “extraordinarily” inquisitive about utilizing crypto to make funds if they may acquire reductions for doing so. Rewards make highly effective incentives as effectively. Fifty-nine p.c of present or former holders would even be inquisitive about utilizing crypto as a fee technique if loyalty rewards have been out there, and this share jumps to 66 p.c amongst holders who already make purchases utilizing cryptocurrency.
These findings contact upon only a few of the insights outlined in our analysis. To be taught extra about how customers plan to make use of cryptocurrencies, download the Playbook.