2022, a disastrous year for the cryptocurrency market as more than $2 trillion in value evaporated from the total crypto market cap, but that hasn’t dissuaded retail investors from investing and holding cryptos in the long run.
Payments are one of the fastest-growing avenues for crypto adoption as the use of digital wallets is on the rise. While traditional payment methods such as cash, debit and credit cards remain the dominant form of consumer payments, next-generation options like digital wallets and crypto are beginning to gain traction.
Currently, 9% of consumers indicated that they use next-gen payment methods as their primary way to pay for face-to-face transactions, but that number is projected to increase to 20% by 2025.
Adoption is especially high among consumers in the Asia-Pacific region who use digital wallets for small purchases at a higher rate than in other regions. Digital wallets are acting more as a bridge to the world of crypto, as 75% of them are linked to a credit or debit card and use traditional card rails.
A total of 56% of respondents use digital wallets more than five times a month versus 48% who said they use their credit cards that often.
Nearly a third (31%) of respondents who use credit cards as their primary payment method for in-person shopping are currently considering a change to other payment methods.