Can crypto become the new cash? A look at adoption patterns for consumers and merchants
- Market volatility raises concerns, but recent data suggest that cryptocurrencies may be on their way to adoption for commerce.
- Most consumers want to be able to pay with crypto, and merchants are starting to cater to this need in earnest.
Recent market volatility may indicate a rough patch for digital currencies, but recent data suggests that they may have the requisite consumer demand and merchant adoption to power through. With cryptocurrency ownership reaching an all-time high this year, it looks like paying with crypto could become mainstream sooner than we thought.
Research about in-store and online purchases made through cryptocurrencies suggests that they are most popular amongst millennials. Moreover, more than a quarter of all cryptocurrency holders also use wallets like Apple Pay and Google Pay – which may indicate that upon wider adoption by merchants, those who own cryptocurrency will not shy away from using it the same way they use their digital wallets.
Even though many consumers that invest in cryptocurrency do so for investment and savings opportunities, 30% of consumers have reported using it to make purchases online and 21% report using it to buy items in-store. Groceries, clothing, gaming, and entertainment subscriptions were the most popular categories. 37% of consumers reported using digital currencies to buy groceries in-store, and 34% reported the same for online purchases. A snapshot of the data shows the distribution of purchases across different categories:
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