Cryptocurrencies and blockchain will be the catalyst for the long-awaited transformation of the “old-fashioned and exclusive” payments industry. investigation Conducted by Ripple and the US Faster Payments Council.

The survey found that 100% of respondents believe that cryptocurrencies and blockchain will bring benefits such as efficiency and cost savings to the payments industry.

“[Crytptocurrencies] We are well-positioned to solve seemingly intractable payments problems by efficiently and effectively filling various gaps in the payment flow. “

But before we can start evolving, we need to clarify the regulations. Nearly 90% of respondents said further growth in adoption of cryptocurrency payments will depend on regulators providing the industry with clear rules on how to operate.

The majority of respondents said the uncertain regulatory environment is the only barrier to the current adoption of crypto-payments, with only 10% believing that crypto-payments have no advantages.

Key Benefits of Crypto in Payments

According to the report, cryptocurrencies and blockchain are expected to save the payments industry about $10 billion by 2030.

A majority of survey respondents (97%) believe that cryptocurrencies and blockchain “will play a key role in enabling faster payments in the next three years.”

A major advantage of cryptocurrencies and blockchain technology is the ability to significantly reduce transaction costs and time, resulting in savings for both businesses and consumers.

According to the report, the payments industry is currently plagued by pre-funding, high transaction fees, slow settlement times, and opaque capital flows, all of which offset rising costs of sending and receiving payments.

By the end of 2022, the average cost of cross-border remittances will be 6% of the value of remittances, double the target set by the United Nations, while the average cost of crypto transactions of the same size as remittances will be a fraction of a percent.

Crypto payment integration

Over 50% of survey respondents believe that within the next 1-3 years, most merchants will begin to integrate cryptocurrency payments and accept a variety of cryptocurrencies into their services.

Similarly, over 50% are considering integrating cryptocurrency payments into their business in the future. But he is only 17% of companies already doing so.

According to the report, the low rate of adoption is largely due to regulatory ambiguity, and even the second most cited barrier to adoption, limited industry acceptance, is more or less unskilled for the industry. He said it was a side effect of the lack of established rules.

A Ripple report, citing a 2022 Deloitte study, points to similar findings, with 87% of merchants saying crypto payments offer a “competitive advantage.”

In terms of regions, the Middle East and Africa are the “most bullish” when it comes to cryptocurrency payments. About a third of respondents in the region expect to consolidate cryptocurrency payments within the next 12 months.

The report attributes the bullish sentiment towards crypto payments in the region to a “growing desire for broader financial access and inclusion.”

Posted In: Adoption, Payment

By Jules

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