According to the latest report, Bitcoin adoption among merchants is expected to increase by 50% in the next three years. This result from a survey conducted by Ripple and the Faster Payments Council, which involves 300 payment leaders in 45 countries.
Interest Is Growing In Bitcoin Payments Globally
The report shows that blockchain technology has emerged as an alternative to costly payment systems in recent years. The volume of transactions has increased significantly in the crypto industry, with more than 5.5 million users of crypto payments in the US alone in 2023.
The top four crypto payment use cases include remittances, cross-border B2B payments, card payments, and digital payments. Remittances take the biggest share of this, with foreign workers taking crypto to avoid high transaction fees when sending money to their families.
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In addition, the increased adoption of Bitcoin payments by PayPal and Stipe also increased adoption significantly. Beyond Bitcoin, stablecoins like USDT and USDC have gained significant adoption due to their low volatility. It is reported that using stablecoins for cross-border payments is 80% cheaper than traditional payment methods.
About 97% of respondents in the survey believe that crypto payments will play a major role in faster payments in the next three years. Over half of the leaders surveyed expect most merchants to use crypto payments at this time.
The Middle East Leads the Adoption Race
According to data from Ripple and FPC, most payment companies believe that global merchants will use more cryptocurrencies in the near future. As seen in the graph below, the results of the survey show that 64% of representatives of payment companies in the Middle East believe that more than 50% of merchants will start accepting cryptocurrency payments in the next three years.
Europe followed this with 58%, North America 51%, and Africa 51%. In contrast, about 17% of Latin American representatives believe adoption will happen at this time. This is despite a growing adoption rate in the LatAm region among both formal and informal businesses.
Regulatory issues were also discussed in the Ripple and FPC survey. For the majority of payment companies consulted (89%), the lack of regulatory clarity in the crypto-asset sector is an “obstacle” to using blockchain technology as a means of payment.
However, it should be noted that in recent months there has been progress in the cryptocurrency sector in several countries. Countries like Venezuela and El Salvador have created a comprehensive legal framework for crypto assets.
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In addition, countries around the world, such as South Africa, Brazil, and Singapore, are moving forward in their regulations. The survey determined that the company’s “optimism” for this market could respond to the “growing appetite” for “access and inclusion to a wider range of financial services.
It also highlights that other payment methods based on blockchain technology, such as central bank digital currency (CBDC), will improve the global payment system.
Featured Image from Unsplash.com charts from Ripple/FPC and TradingView.com.