According to the latest report, merchant adoption of Bitcoin is expected to increase by 50% over the next three years. This result comes from a investigation led by Ripple and Faster Payment Council, which involved 300 payment leaders in 45 countries.
Growing Interest in Bitcoin Payments Globally
The report states that blockchain technology has emerged as an alternative to expensive payment systems in recent years. Transaction volumes have grown significantly in the crypto industry, with over 5.5 million crypto payment users in the US alone in 2023.
The four main use cases for crypto payments include remittances, cross-border B2B payments, card payments, and digital payments. Remittances take the lion’s share, with foreign workers turning to crypto to avoid steep transaction fees when sending money home.
Related Reading: Xapo Bank becomes the first lender to enable near-instant Bitcoin payments
Additionally, the growing adoption of Bitcoin payments by PayPal and Stipe has also boosted adoption significantly. Beyond Bitcoin, stablecoins like USDT and USDC have seen significant adoption due to their low volatility. It is reported that using stablecoins for cross-border payments is 80% cheaper than traditional payment methods.
Around 97% of survey respondents believe that crypto payments will play a major role in accelerating payments over the next three years. More than half of executives surveyed expect most merchants to embrace crypto payments during this time.
The Middle East leads the adoption race
According to data from Ripple and FPC, most payment companies believe that merchants around the world will use more cryptocurrencies in the short term. As shown in the graph below, survey results show that 64% of payment company representatives in the Middle East believe that more than 50% of merchants will start accepting cryptocurrency payments within the next three years.
Europe follows with 58%, North America 51% and Africa 51%. In contrast, about 17% of Latin American representatives believe that adoption would take place during this period. This is despite the growing adoption rate in the LatAm region among formal and informal businesses.
The issue of regulation was also addressed 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 the use of blockchain technology as a means of payment.
However, it should be remembered that in recent months there have been advances in the regulation of the cryptocurrency sector in several countries. Countries like Venezuela and El Salvador have established a comprehensive legal framework for crypto assets.
Related Reading: Ripple will appeal immediately if it loses to SEC, says chief legal officer
Additionally, countries around the world, such as South Africa, Brazil, and Singapore, are making progress in their regulations. The survey determined that business “optimism” for this market could respond to a “growing appetite” for “access and inclusion to broader financial services”.
He also pointed out that other payment methods based on blockchain technology, such as central bank digital currencies (CBDCs), would improve global payment systems.
Featured image of Unsplash.com charts from Ripple/FPC and TradingView.com.