Global payments volumes are on the rise, accompanied by a growing interest in and use of cryptocurrencies across various industries and use cases. To explore these trends, Ripple and the Faster Payments Council (FPC) collaborated on an inaugural global payments survey. The survey aimed to gain insights into payment providers’ sentiment regarding blockchain and crypto adoption for payments, perceived benefits, future adoption plans, and potential barriers to growth.
Surveying nearly 300 payments leaders from various sectors across 45 countries, the findings revealed that the majority of providers view crypto-enabled solutions as a crucial factor in speeding up sluggish payment markets. The primary benefit cited was the lower cost of domestic and international payments. While few enterprises currently support blockchain-based payments, broader adoption is expected in the future, hinging on improved regulatory clarity.
The survey indicated that although global crypto payment transaction volume is still relatively small compared to total payment volume, its long-term growth prospects appear promising. In the United States, crypto payment adoption is on the rise, with a forecasted 5.5 million users in 2023, representing a significant increase in just three years. Among the primary use cases driving crypto payments growth in the US, remittances and B2B cross-border payments stand out as mature applications.
Research conducted by Ripple also supports the growth trends, showing increasing payment volumes in small-medium enterprises (SMEs), treasury flows, and remittances. Global policymakers are acknowledging the potential of blockchain technology, with G20 leaders prioritizing its use to address issues stemming from outdated financial infrastructure.
Leading payment infrastructure providers are embracing innovation, with PayPal allowing users in the US to accept payments in cryptocurrencies. Stripe has also incorporated cryptocurrency-based rails using the USDC stablecoin into its business payments solution. Furthermore, other payment processors like Worldpay and Checkout.com now support stablecoin payment settlement, attributing the adoption to significant cost savings.
The payments industry is exploring crypto in various novel use cases, such as insurance claims, rewards, rebates, and disbursements. Blockchain-based providers are targeting corporate disbursements to enable more timely and cost-effective payments to employees, affiliates, and customers.
Nearly all surveyed leaders believe that blockchain and cryptocurrency will play a significant role in enabling faster payments within the next three years, particularly in transforming cross-border payments. Regulatory clarity remains a primary hurdle to widespread adoption, with respondents expressing concerns about technical investment as well.
Sentiment around blockchain and sustainability is strong, with most respondents acknowledging the environmental impact associated with blockchain use. However, respondents are familiar with the difference in environmental impact between proof-of-work and proof-of-stake protocols, which could influence the choice of digital assets with more sustainable technology.
Overall, payment providers recognize the value of blockchain and cryptocurrency technology, especially in terms of speed, security, transparency, and flexibility within payment strategies. However, regulatory clarity and technical investment are perceived as significant barriers to widespread adoption.
The report highlights the need for transformation in outdated and costly payment systems, with crypto presenting potential transformative opportunities. While adoption challenges exist, forward-thinking payments leaders are expected to lead the way in embracing crypto and blockchain technology.
Ripple and the Faster Payments Council conducted the survey with a diverse range of participants, including over 950 FPC subscribers from various sectors. As pioneers in crypto and blockchain technology, Ripple’s enterprise-grade solutions aim to revolutionize the financial services industry. The Faster Payments Council envisions a world-class payment system with near-immediate funds availability and encourages collaborative approaches to address adoption issues in the US payment system.
