What's Still Missing from Crypto Payments?

Source: American Banker

Even though severe valuation declines have hit the cryptocurrency market in 2022, actual use of cryptocurrency is increasing.

About 3.6 million U.S. adults will use cryptocurrency to make a purchase in 2022, up from about 2.2 million in 2021, according to Insider Intelligence, which also reports the number of U.S. adults who own at least one cryptocurrency by the end of 2022 will approach 38 million, up from about 25 million in 2021.

Insider Intelligence also reports payments made using cryptocurrency will pass $10 billion for the first time in 2022, up from about $3 billion in 2021. And in a recent Deloitte survey, nearly 75% of responding retailers said they plan to accept cryptocurrency for payments in the next 24 months. 

"While we can't ignore the recent dip in trust surrounding cryptocurrency, there remains a growing interest in crypto and a strong potential for the technology to positively contribute to the future of financial services," said Frank Hinek, executive director of innovation at NCR, which is working on use cases for cross-border and crypto payments at the point of sale, with fast conversions to local traditional currency for consumers and merchants. 

"Crypto has taken longer to mature in terms of providing a widely adopted alternative to the traditional payments system, but there is still a significant opportunity there," Hinek said. 

"Cryptocurrencies still don't have those required regulatory frameworks in place," said Rick Fletcher, group president of CorPay Payables, a payments technology company and consultant. "Their untraceable nature, volatility, and lack of widespread acceptance are big challenges that must be overcome before we see mainstream business adoption."