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Cryptocurrency as a payment method is increasing in popularity, particularly among millennials. This is according to new Checkout.com research, which finds that 40% of consumers aged between 18 and 35 plan to pay using crypto in 2022. Here’s what retailers need to know.
Crypto is one of the hottest topics in financial services right now.
And it’s a space that’s evolving fast, not least in the way consumers view the utility of the cryptocurrencies they hold and their transition from a store of value into something with broader use.
But what’s hype and what’s reality?
To answer these questions, Checkout.com surveyed 30,000 consumers and 3,000 businesses to understand the behaviours and sentiments behind the burgeoning crypto market.
Here are 10 stats every retailer needs to know:
- 39% of consumers believe cryptocurrencies should be used for payments, not just investment
- 40% of consumers aged between 18 and 35 plan to pay using crypto in 2022.
- 24% of men aged between 18 and 35 plan to pay with crypto regularly in the next 12 months.
- $2.5bn worth of crypto payments were made through Visa’s crypto-backed card in the first fiscal quarter of 2022 alone.
- 50% of consumers think all forms of crypto are risky.
- 80% of businesses offering crypto as a payment method have attracted net new customers.
- 77% of businesses that accept crypto are iterating and experimenting with different coins to see which has the most benefits in attracting more customers and operational efficiency.
- 36% of CFOs and treasurers would like to settle some of their payments in stablecoins.
- A lack of regulation is the number one reason for not offering crypto as a payment method.
- 67% of c-level executives say Web3 will inevitably lead to changes in their business models.
Evolution, not revolution
Headlines often suggest that a crypto revolution is under way.
However, our data shows that’s not the case. It’s an evolution, not a revolution.
While consumer and business adoption is increasing, crypto remains on the fringe, especially if we consider its place as a payment method.
So should retailers prioritise enabling crypto payments versus mobile wallets or other local payment methods? Probably not right now, unless they’re seeing strong demand from their target customers.
But should retailers be keeping a firm eye on the space as it develops? And should they strike relationships with those at the forefront to guide them through this evolution? Definitely.
Download Checkout.com’s new Demystifying Crypto report to learn more about the adoption of digital currencies for payments in 2022 and the implications this may have for retailers.
Jess Houlgrave is head of crypto strategy at Checkout.com
Houlgrave is focused on Checkout.com’s go-to-market strategy. She is responsible for scaling the company’s crypto offering, enabling Checkout.com to power the world’s largest exchanges, fan token platforms and wallets.
Houlgrave also sits on the Bank of England Engagement Forum for CBDC, the UK Fintech Strategy Group and the DIT/Innovate Finance International Fintech Advisory Group.
