Cryptocurrencies have turn out to be rising standard since bitcoin’s debut 12 years in the past. As soon as thought-about obscure, cryptocurrencies at the moment are probably the most talked-about fee subjects and make headlines within the every day information. Cell buying and selling apps, in the meantime, make the shopping for and promoting of cryptocurrency extra accessible to most people — and influencers similar to Elon Musk both enhance or lower the curiosity of shoppers.
With cryptocurrency possession rising 63 % in 2020 and the cryptocurrency market’s valuation exceeding $2 trillion for first time in April of this yr, shoppers’ curiosity in shopping for and spending cryptocurrency continues to rise, and shoppers wish to use these currencies to pay for retail purchases.
The Cryptocurrency Payments Report: How Consumers Want To Use It To Shop And Pay, a PYMNTS and BitPay collaboration, examines shoppers’ present curiosity in and future plans for possession and use of cryptocurrency. We carried out a census-balanced survey of 8,008 United States shoppers who’re present and former cryptocurrency customers and cryptocurrency nonusers between Feb. 8 and Feb. 23, 2021.
Our evaluation exhibits that not solely do present cryptocurrency house owners have a excessive degree of consolation making purchases utilizing cryptocurrencies, however so do those that have by no means owned them. Alongside those self same strains, 57 % of former or current cryptocurrency house owners made no less than one buy utilizing it final yr, and 59 % of shoppers who by no means owned cryptocurrency are occupied with utilizing it to make purchases sooner or later. The truth that greater than half of shoppers who’ve by no means owned cryptocurrency are occupied with utilizing it sooner or later illustrates that customers now understand cryptocurrencies as a legitimate fee choice.
It’s additionally vital to notice that as many as 46 million shoppers (18 %) would think about using cryptocurrency for retail purchases, no matter whether or not they at present personal cryptocurrencies or not. This implies purchases utilizing cryptocurrency may conservatively symbolize round 1 % of retail gross sales within the subsequent yr.
Who’re these cryptocurrency house owners? PYMNTS analysis signifies that cryptocurrency house owners are extra generally youthful, middle-income and male. Nineteen % of millennials at present personal cryptocurrencies, as do 16 % of middle-income shoppers (these incomes between $50,000 and $100,000 per yr), 15 % of males and
8.5 % of girls.
Crypto possession can also be extra widespread amongst youthful shoppers, as millennials and bridge millennials are the most definitely of all to already personal cryptocurrency or to have owned it prior to now. Our analysis exhibits that 27.6 % of all millennials and 27.5 % of bridge millennials both personal or have owned no less than one kind of cryptocurrency. That is way over the 16.7 % of Era X shoppers and solely 5.2 % of child boomers and seniors who personal or have owned cryptocurrency, in contrast.
PYMNTS analysis signifies that lack of expertise, or not realizing sufficient about cryptocurrency, the best way to receive it or its tax implications, is the most-often cited barrier for nonowners, as 75 % don’t buy it for that reason. One-third of shoppers who by no means bought cryptocurrencies cite their not being mainstream or accepted sufficient as a purpose why. That is mostly cited amongst child boomers and seniors (39 %). A comparatively smaller however vital share of respondents who’ve by no means bought cryptocurrencies fear about their worth being too risky (25 %).
These findings contact on just some of the insights outlined in our analysis. To be taught extra about how shoppers really feel about utilizing cryptocurrency and the way retailers can guarantee they’re assembly prospects’ wants, download the report.