Blockchain and Crypto, Sponsored

Navigating cryptocurrency: Building on consumer trust with innovative technology

  • The significant market capitalization of cryptocurrency and its growing popularity are creating a strong movement to incorporate cryptocurrency into payments, investments and banking capabilities
  • As mainstream curiosity and interest in cryptocurrency increases, more companies are facing strategic decisions around how to accommodate the use and consumer demand of the new currencies
close

Email a Friend

Navigating cryptocurrency: Building on consumer trust with innovative technology

This is part two of a three part series by Fiserv promoting their latest point of view paper, Three Cryptocurrency Actions for Financial Institutions.

Financial institutions have a tremendous opportunity to provide cryptocurrency access to an expansive number of consumers. Financial institutions can provide accessibility through existing core platforms and digital channels to help develop a digital currency identity that mitigates security concerns and reduces barriers to entry. Cryptocurrency as an asset and as a payment option are two areas that have caught the attention of consumers. 

Cryptocurrency as an asset

Offering the ability to buy, hold and sell cryptocurrency or enabling consumers to see their cryptocurrency holdings alongside their traditional bank accounts sounds straightforward, but it will require collaboration between cryptocurrency platforms, core platforms and financial institutions. To that end, Fiserv is committed to developing capabilities that will allow financial institutions to enable consumers to buy, hold, and sell bitcoin and other cryptocurrencies through their financial institution relationships. Fiserv is working to provide ways for financial institutions to connect to or white-label cryptocurrency wallet software.

Cryptocurrency as a payment option

Cryptocurrency payment capabilities are already cropping up as various payment vehicles incorporate cryptocurrency options. Merchants such as Walmart are also exploring cryptocurrency payment options, in addition to large technology companies, including Apple® and Amazon® . 

Cryptocurrency also has the potential to disrupt the cross-border payments industry, which is hindered by technology limitations. While demographics of early adopters highlight younger generations’ enthusiasm for cryptocurrency, interest in this new, innovative payment option is gaining traction among all age groups. The PYMNTS.com report shows similarities in cryptocurrency transaction size across generations: 

  • 31% of owners made a purchase between $100 and $1,000 
  • Among boomers, 45% of current and former cryptocurrency holders made purchases in that range, compared with 30% of Gen Z 

It’s important to note that cryptocurrency payment solutions can come in several forms. The most traditional uses cryptocurrency, such as bitcoin, as a medium of exchange the same way we use dollars and other fiat currencies. Where things can get more interesting, however, is using cryptocurrency and blockchain solutions to improve the speed, security and availability of payments. 

Innovation creates potential 

Buying and selling cryptocurrency today can position financial institutions to capitalize on future-use cases that may emerge. Relatively early adoption can help financial institutions gain credibility as cryptocurrency solutions become more mainstream. 

With that in mind, it’s crucial to keep an ear to the ground to see what developments occur in cryptocurrency from technological and consumer-demand perspectives. Communicating and collaborating with your technology partners can help you stay mindful of the latest developments. As cryptocurrency and blockchain continue to evolve, it’s important that financial institutions keep a forward-looking approach to the industry.

For more insights and action items for financial institutions navigating the cryptocurrency venture as it gains popularity, download Fiserv’s latest point of view paper.

0 comments on “Navigating cryptocurrency: Building on consumer trust with innovative technology”

Payments, Sponsored

International remittances: A money movement lifeline ripe for digitization

  • Digital transformation is simplifying how people move money around the world, yet barriers to international P2P transfers remain.
  • In honor of International Day of Family Remittances, Visa shares four tips for how policymakers can better streamline digital remittances.
Visa | June 16, 2022
Data, Sponsored

Cash flow underwriting: A BNPL solution

  • BNPL is undergoing a serious growth spurt. But with legacy data reporting systems galore, the new payments trend is putting lenders in a tough spot.
  • Using cash flow and cash data to determine credit worthiness could be a solution to the problem.
Nova Credit | June 01, 2022
Library, Sponsored

The promise of employment data in the gig economy

  • Financial institutions are failing a third of the workers: the self-employed. That number rises by 2027, when gig workers are projected to make up half of the labor force.
  • Download our latest whitepaper laying the groundwork for what FIs are missing – and all the ways leveraging alternative data can lead the way to a more inclusive financial system.
Argyle | May 31, 2022
Library, Sponsored

WTF is BNPL for Business?

  • The BNPL market reached $226 billion in B2C transactions last year, and continues to soar in 2022. The promise of BNPL in B2B is no less great.
  • Download the guide to learn WTF is BNPL for Business, why it matters, the different solutions available, and how it all works.
Fundbox | May 25, 2022
Library, Podcasts, Sponsored

Case study: How Intuit’s newest upgrade of Mint helps consumers save on bills and subscriptions

  • In our latest case study, we spoke with Intuit Mint and ApexEdge about how they enable better money decisions and financial wellness.
  • Listen in or read through our conversation with Varun Krishna and Steven McKean about building and launching a partnership that takes PFM further.
Tearsheet Editors | May 16, 2022
More Articles