According to the latest report, Bitcoin adoption among merchants is expected to increase by 50% in the next three years. This result is from a survey conducted by Ripple and Faster Payment Council, which involved 300 payment leaders in 45 countries.
A Growing Interest In Bitcoin Payments Globally
The report indicated that blockchain technology has emerged as an alternative to costly payment systems in recent years. Transaction volumes have increased remarkably in the crypto industry, with more than 5.5 million crypto payment users in the U.S. alone in 2023.
The top four use cases of crypto payments include remittances, cross-border B2B payments, card payments, and digital payments. Remittances take the lion’s share of this, with foreign workers taking to crypto to avoid high transaction fees when sending money home to their families.
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In addition, the growing adoption of Bitcoin payments by PayPal and Stipe has also boosted adoption significantly. Beyond Bitcoin, stablecoins like USDT and USDC have enjoyed significant adoption due to their low volatility. It is reported that using stablecoins for cross-border payments is 80% less expensive than traditional payment methods.
Around 97% of the respondents in the survey believe that crypto payments will have a major role in faster payments within the next three years. Over half of the surveyed leaders expect most merchants to adopt crypto payments within this period.
Middle East Leading The Adoption Race
According to data from Ripple and FPC, most payment companies believe that merchants globally will use more cryptocurrencies in the near term. As seen in the graph below, the survey results show that 64% of representatives of payment companies in the Middle East believe that more than 50% of merchants will start accepting cryptocurrency payments within the next three years.
Europe follows this with 58%, North America 51%, and Africa 51%. In contrast, about 17% of the Latin American representatives believe adoption would occur within this period. This is despite the growing adoption rate in the LatAm region among formal and informal businesses.
The regulatory issue was also discussed in the Ripple and FPC survey. For the majority of the payment companies consulted (89%), the lack of regulatory clarity in the crypto-asset sector is a “barrier” to using blockchain technology as a means of payment.
However, it must be remembered that in recent months there have been advances in regulating the cryptocurrency sector in several countries. Countries like Venezuela and El Salvador have established a comprehensive legal framework for crypto assets.
In addition, countries globally, like South Africa, Brazil, and Singapore, are advancing in their regulations. The survey determined that the “optimism” of companies for this market could respond to a “growing appetite” for “access and inclusion to broader financial services.
It also highlighted that other payment methods based on blockchain technology, like central bank digital currencies (CBDC), would improve global payment systems.
Featured Image from Unsplash.com charts from Ripple/FPC and TradingView.com.