Cryptocurrencies' global adoption continues apace with research showing eCommerce demand
At the ongoing 2022 Bitcoin conference held in Miami, global payment provider Checkout.com released a new report regarding the adoption of digital assets. The document titled “Demystifying Crypto: Shedding light on the adoption of digital currencies for payments in 2022” was quite enlightening. It revealed a growing positive trend of crypto adoption and an increasing appetite for using crypto for eCommerce transactions.
The study was conducted between Feb. 2 and Mar. 1, 2022. Checkout.com interviewed over 30,000 customers and 3,000 merchants across 11 countries for the research. The respondents hailed from the US, the UK, France, Spain, Italy, Germany, the UAE, Saudi Arabia, Hong Kong, Singapore, and Australia.
Data Shows Growing Appetite For Crypto Payments Among Millennials
According to the report, consumers have a growing appetite to make payments for their goods and services using crypto. About 40% of 18 to 39-year-olds indicated that they intend to make payments using crypto in 2022. This further substantiates the popularity of digital assets among gen Zs and millennials.
On the merchant side of the two-faced eCommerce coin, 77% of merchants who support payments in digital assets saw increased cross-border sales. Furthermore, 23% of online businesses said they plan to integrate crypto payments before 2024, while 36% of CFOs surveyed would like to settle charges in stablecoins.
Source: Checkout.com's Demystifying Crypto: Shedding light on the adoption of digital currencies for payments in 2022 report
Other interesting data from the study can be seen in the chart above. The eCommerce sector is already feeling the effects of crypto, as Visa's (NYSE:V) crypto-backed card processed over $2.5 billion in payments in Q1 2022. Also, 51% of companies reportedly said some of their employees had shown interest in receiving their salaries in crypto.
Head of Strategy for Crypto at Checkout.com, Jess Houlgrave, said that consumers are adapting to the fast-paced evolution in payments technology. And to maintain their relevance and profitability, businesses must pivot alongside consumer demand. She further highlighted the importance of the research, saying:
"We believe this is the largest consumer survey of its kind, and the findings present a clear evolution of attitudes towards cryptocurrencies around the world. This is a legitimate transition from the early adoption phase to one that’s more practical, pragmatic and positive overall."
It is no secret that cryptocurrency, alongside its underlying technology—distributed ledger technology—offers eCommerce brands numerous benefits. These benefits include faster and more cost-effective business processes and greater data security. Therefore, eCommerce platforms must understand the potential implications of this technology to help them unlock valuable opportunities for future business.
Quick on the heels of Checkout.com’s report, another payment infrastructure platform, Worldpay, announced a new partnership with Circle. Like Visa in 2021, the new agreement would let merchants receive settlements directly in the USDC stablecoin.
Worldpay’s parent company, FIS, revealed that the popular crypto exchange Cypto.com would be the pilot customer for the initiative. It then reiterated that the ability of merchants to receive a settlement in stablecoins could help drive the adoption of digital assets. Stablecoins enable them to experiment with cryptocurrency in a less volatile and lower-touch environment.
FIS processes more than $2 trillion worth of transactions annually in over 100 countries and across diverse payment types. Reacting to the partnership, Circle CEO Jeremy Allaire said the pact was a glimpse into a future where value is exchanged frictionlessly.
Consequently, the partnership confirms Checkout.com’s finding regarding the growing appetite from consumers for crypto payments. With Visa and other leading platforms already integrating crypto payment options, more businesses would look to do likewise. This would ensure they are not left behind as the crypto craze catches on in the eCommerce sector.