Source: AdobeStock / Iren Moroz
Not knowing enough about cryptocurrencies is the main barrier to higher adoption, substantially exceeding volatility or other often cited reasons, according to a recent survey by payments data and news provider PYMNTS and crypto payments processor BitPay.
Based on data obtained from 8,008 US consumers who were current and former crypto owners and non-owners between February 8 and February 23, 2021, the survey indicates that lack of knowledge leads the way as the key reason behind decisions not to purchase crypto for every age group.
Though nearly all respondents have heard of crypto, the majority said not knowing enough about them, how to obtain them, or their tax implications are the reasons for never having purchased them.
Ranging between 72% of answers for generation Z respondents, 72% for Millennials, and 76% for baby boomers and seniors, this answer tops any other reason.
It is followed by those respondents who view cryptocurrencies as “not mainstream enough/accepted enough,” with replies ranging between 22% and 39% across these age groups, and “their value is too volatile,” with between 15% and 28% agreeing with that statement.
“Consumers need more information and a better understanding of cryptocurrency for adoption to reach its full potential,” said the report.
Among its other findings, the report highlights the importance of secure and private payment experiences to US consumers. Researchers note that up to 60% of crypto users are “very” or “extremely” interested in relying on crypto “to make online purchases that are more private or secure — or because they think these purchases are.”
Lower transaction costs in major purchases are also a major incentive – 40% of respondents “interested in using cryptocurrency in real estate purchases say they are motivated to eliminate intermediaries,” and 38% showed interest in spending crypto on computers and electronics.
Close to 40% think purchasing entertainment and media products using crypto “would make online payments more efficient,” while 36% aim for lower transaction costs, according to the survey.
Both holders, at 57%, and non-holders, at 21%, would use crypto for payments if they were offered such an option during online checkout.
In addition to this, discounts and loyalty rewards remain potentially powerful incentives to lure customers to crypto payments. 23% of non-holders “would be highly interested in paying with cryptocurrencies if they were offered discounts,” the report said.
59% of current or former cryptocurrency holders would be ‘very’ or ‘extremely’ interested in using crypto as a payment method “if it meant they could obtain discounts” – a share that increases to 65% “among holders who already make or made purchases with cryptocurrencies” and drops to 51% percent among those who have not, according to the survey.