Why do research institutions expect the crypto payment market size to increase?

A recent Grand View Research report noted that the crypto payments apps market could grow by a CAGR of 16.6% in the next few years. This is in agreement with many other studies, which point to the same trend. Allied Market Research, for instance, projected it could grow by 18.7% within the same time frame.

Such predictions should mean something to serious investors, especially those associating with more robust currencies like Solana. By the way, do you know that Solana alone can support up to 65,000 transactions per second? Such benefits could drive the Solana Price higher as more people begin to scramble for it. So, in this article, we mainly focus on why more businesses are adopting crypto payments and other amazing insights.

More people want instant experiences

Believe it or not, PYMNTs.com claims that 78% of customers prioritize instant payments as a critical aspect of their experience. Now that technologies like crypto have made it possible to complete transactions almost instantly, customer expectations have also evolved. Besides, more businesses want to improve their cash flow management using faster payment solutions. United Bankers’ Bank reports that about 60% of businesses favor these solutions because they offer quicker access to funds.

As if that were not enough, a 2021 Federal Reserve survey noted that about 90% of businesses planned to support faster payments by 2024 fully. Now that crypto transactions only take a few seconds to process, most organizations could actually adopt them.

The best part of these transactions is that they are cheap. Crypto, for instance, eliminates the need for intermediaries, who increase transaction costs and lengthen the transaction processes. For businesses targeting regions without banks or similar financial institutions, crypto payments can be a convenient alternative.

As long as the target audiences have smartphones with good internet connectivity, they can access crypto experiences without restrictions. Given these factors, it makes sense to expect more businesses and financial institutions to accept crypto payments in the future.

Aligning with shifting customer needs

We have already seen how crypto can help meet the growing need for instant payments, yet there’s more. A recent study by Exploding Topics noted that close to one billion people now own cryptocurrencies. This is a massive number for any serious international business to ignore.

We can all agree that turning a blind eye to emerging customer trends can be a great disservice to companies. The opposite is also true. In fact, Superoffice CRM suggests that businesses that optimize their products to align with customer preference can make up to 60% more profits than businesses that don’t. So, you’d want to capitalize on the growing popularity of crypto and integrate crypto-based payment solutions to appear more relevant.

Also, remember that many users are okay with making online purchases with digital currencies. Triple-A released a report claiming that about three-quarters of cryptocurrency owners expressed their readiness to use digital currencies to make payments.

In another place, Swapin noted that 68% of people want more opportunities to make crypto payments. These are some of the statistics that are putting pressure on companies and organizations to adopt crypto-based payments, which could result in the expansion of this industry, just like many research institutions predict.

The growing emphasis on online security

No one wants to involve themselves in environments that compromise their security. In fact, with cyberattacks on the rise, individuals are now paying more attention to their online safety. Given that about 4,000 new attacks happen daily, you definitely don’t want to be a victim.

When it comes to the payments sector, things don’t seem to be any different. Studies show that about 65% of financial services organizations encountered ransomware in 2024, a number that could increase in the coming days. Thankfully, crypto has cryptographic functions that can help improve the security of transactions. Hashing, for example, strengthens security by preventing the reversal of the hashing process of the crafted algorithm.

Crypto’s digital signatures can also be helpful, as they help set the sender’s and source’s credibility. The SHA-256 concept transforms input information into a 256-fixed-size output that further adds to the network’s security. This is without mentioning the multi-signature wallets that often require multiple private keys before completing transactions. That way, businesses are able to limit exposure to attacks, explaining why more businesses could welcome crypto payments.

To add to that, cyberattacks can be quite costly. Leave alone the money you spend recovering; a good number of customers will not easily trust your brand again. In fact, cxscoop.com claims that up to eight in ten customers might stop transacting with a brand for some time immediately after a data breach, with 21% claiming they might never return to such brands. So, to avoid being a victim of such occurrences, more businesses might adopt contemporary methods like crypto payments to stay ahead.

Parting words

It should not shock you that the crypto payment market is growing. This emerging technology offers great benefits like immediacy in payments, increasing its appeal among many businesses.

Remember, if you want to succeed in the business world, you must align with customer needs. After all, why would you want to spend your resources on a brand that doesn’t meet your needs? That’s why, among many other reasons, multiple research institutions expect this industry to grow.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes