According to a new study, the secret behind a rapid mass adoption of cryptocurrencies lies in meeting conflicting consumer demand for cryptocurrencies across various business sectors.
In a survey among 110,000 crypto.com customers and over 1.5 million Worldpay sellers, almost 60% of sellers and customers shared an interest in crypto payments. However, consumer demand is not reciprocated by business sectors that accept cryptocurrency.
Industry’s appetite for cryptocurrency payments. Source: Crypto.com
As explained above, consumer demand for cryptocurrency payments exceeds the availability of sellers in four major industries – travel, automobile, digital media and hospitality. The gap in the availability of sellers offers a huge opportunity to take advantage of the market’s demand for payments with cryptocurrency.
On the other hand, industries with calmer markets, such as luxury goods, retail, groceries and games, are showing more interest in using cryptocurrency. For example, luxury brands and retailers are starting to use non-fungible tokens (NFTs) to authenticate their products while working with a new customer base.
The survey says that this is a direct result of the buyer’s demand surpassing sellers in cryptocurrencies:
“For this reason, 64% of Crypto.com customers use prepaid cards to spend their money on businesses that do not support direct wallet transfer.”
Both consumers and traders trust and prefer to use cryptocurrencies with the highest market value – bitcoin (BTC), ether (ETH), litecoin (LTC) and US dollar (USDC).
Give preference to cryptocurrencies for payments. Source: Crypto.com
Another discrepancy between consumer and seller has to do with preferences in payment methods. While almost 70% of customers surveyed showed interest in in-store and online payments, the majority of companies that accepted cryptocurrencies chose to only accept cryptocurrencies through e-commerce sites.
When we look at the gaps despite increasing demand from both merchants and consumers, Crypto.com research highlights the need for crypto education and the changing regulatory framework to accelerate merchant adoption in limited business sectors.
Related: Apple’s upcoming iPhone feature to give merchants the ability to accept cryptocurrencies
Apple recently announced plans to launch a new Tap to Pay feature for its iPhone that effectively turns the smartphone into a sales outlet for businesses and retailers.
A report from Cointelegraph on the case shows that the upcoming feature can be used to make crypto payments between companies that accept Apple Pay.
According to Apple, the soon-to-be-launched Tap to Pay feature will expand support for “Apple Pay, contactless credit and debit cards, and other digital wallets.”