The interest in cryptocurrency has skyrocketed over the last few years. As the number of transactions increases, crypto currencies are being adopted around the world.
There is still much to be done in education about currencies and the technologies that underlie them. People want banks and governments to be more involved in digital currency transactions. This will help build trust, which is crucial if crypto payments continue to rise.
Mastercard’s 2022 New Payments Index (a global survey with more than 35,000 respondents) found widespread awareness of cryptocurrency. The number of payments made with crypto has almost doubled over the past year.
According to the New Payments Index, around 40% of global consumers have used crypto in the past year. Some 30% opened a cryptocurrency wallet (27%) and traded currencies (29%). Others hold them as investments (29%). Globally, around half of consumers say they are interested to use crypto for other purposes such as making payments for everyday goods (51%), or purchasing digital assets (49%). Digital currencies are being adopted faster by younger users than the older generation.
While more than 90% of digital currency users are familiar with them, many consumers admit to having only a superficial understanding of their operation and the blockchain technology behind them
Consumers are concerned about the stability and security of digital currencies. In fact, the survey found that respondents rate emerging payment methods such as crypto less secure than cash or using a credit card. 93% of respondents expect to pay digitally in the next year. However, 53% believe security is a major factor in their decision on which payment method to use. It will be a big step in increasing trust in crypto currency’s security and value, which will help people embrace crypto as a payment method beyond investment.
Clear, consistent regulations are one way to strengthen trust. According to the survey, overall consumers believe that crypto industry security and regulation would provide greater confidence when they are investing in cryptocurrency and making payments.
Mastercard’s survey found that 63% of respondents believe their governments should regulate crypto, while 59% said they would be more at ease if digital currencies were issued by an accredited organization.
Many customers believe that banks should be open to offering ways to make it easier for crypto assets to be transferred. They are also interested in bank cards that pay crypto rewards, and they want their financial institutions give them more access to cryptocurrency trading.
It’s a common desire to learn more about digital currencies and to be able to use them safely and effectively. Even crypto experts say they would use crypto more often if they had a better understanding of the system.
All executives need to keep security and education top of mind as the industry enters its next phase. The threshold is reached and consumers are curious. Building trust in crypto will allow them to move on to the next stage.