In 2021, Crypto Refills Labs conducted the largest (at least, for now) consumer adoption research on the use of cryptocurrencies in payments for goods and services. The Consumer Adoption Report presents trends in the storage and use of cryptocurrencies in shopping and associated payments.
The study focused on Bitcoin and Ethereum, which are the adapted for retail the most. The key finding was that while the entry of cryptocurrencies into retail began relatively recently, it’s advancing rapidly and has great potential ahead. Here are the main insights:
- The majority of respondents were young men, mostly from developing countries with lower- and middle-class incomes. 1/5 of respondents rate the introduction of cryptocurrency payments into the global economy as positive.
- Bitcoin remains the most popular currency, with 79% of users opting for it despite the high transaction costs. Ethereum and Litecoin are other global giants, with 54.5% and 31.7%, respectively.
- When making purchases, people have to deal with time delays, taxes, and high commissions. Bitcoin’s Lightning Network may become a preferred choice for making crypto purchases. However, the researchers did not come to a consensus on whether this would be a technological breakthrough or if it was just an exaggeration.
- he most common crypto payments are mobile funds replenishment, game credits, applications, and entertainment. Alongside this, 34.1% of respondents conduct payments on a monthly basis, and 25% – on a weekly basis. Thus, with the growth of opportunities, inclusivity, and accessibility, the crypto industry will see a higher number of purchases.
- Gift cards and certificates will accelerate users’ transition to cryptocurrency payments. As traditional branded marketplaces show, a lack of these options reduces customer conversion rate.
- Crypto shopping is a solution to many existing financial and technological issues. Limitations, high fees, long transfers, payment restrictions per day or month, and the inadequacy of traditional systems – all these are the reasons for transitioning to digital. As a new, functional, and evolving field, decentralized finance may potentially skyrocket due to its evidently growing popularity.
The new system of cryptocurrency payments has potential and seems promising. It offers the necessary technical and business solutions to the public in the evolving economy.
According to Crypto Refills Labs’ findings, the respondents are positive about the use of crypto in retail. In particular, they highlight the ease of use. Many consumers believe that the speed of transactions has become a pleasant bonus that boosts the growing popularity of crypto in retail. The security aspect in blockchain is designed to be more robust than in traditional systems, and it’s proving to be as such in many ways. All this leads to a conclusion that cryptocurrencies are steadily taking a larger share in retail and may become a serious competitor to fiat.