Cryptocurrency payments represent one of four major emerging payment methods, and 45% of customers surveyed plan to use them for cashless transactions within the next 2 years, according to a new report from IT consulting firm Capgemini.
According to the report, less than 10% of respondents in a survey of 6,300 customers and 210 payments executives worldwide said they have used cryptocurrencies for payments. Still, the payment method was classified as an “emerging payment method” that the company claims nearly half of all customers will use in the next 1 to 2 years.
In addition to cryptocurrencies, Capgemini highlighted the following emerging payment methods: credit card-like “buy now, pay later” options “invisible payments” technologies used by automated convenience stores like Amazon Go, and “biometric payments” that use fingerprints or facial recognition to approve payments.
Judging by the report’s findings, about 35% of customers already struggle with traditional payment methods as the need for cross-border payments increases. In addition, many are concerned about the high transaction fees for their payments as well as the lack of standardization in international payments, according to the report.
In terms of the steps merchants and businesses are taking to address the challenge of simplifying payments for customers, the report notes that cryptocurrency payments are becoming more common.
“Payments in cryptocurrencies are becoming an increasingly popular alternative option for businesses, although current adoption is still in its early stages,” the report said. The report mentions PayPal and Yum Brands as companies that have already begun supporting cryptocurrencies, and eBay as an example of a company that is “actively exploring the possibilities.”
But while interest in cryptocurrencies is already on the rise, Capgemini sees volatility in this market as a sign that the crypto market is not yet mature.
“Nevertheless, crypto cards are taking the lead in the crypto payments space, driven by initiatives from global card providers to create a fertile crypto payments ecosystem,” the report concludes.