Consumer Insights: Who's Using Cryptocurrency?
Payment data platform PYMNTS and crypto payment processor BitPay recently collaborated on the Paying With Cryptocurrency report, analyzing crypto adoption trends through surveys of 2,334 consumers and 202 merchants with annual sales exceeding $250M.
Key findings about crypto users:
Primary Motivations:
- 55% hold crypto for investment purposes
- 30% utilize it for transactions
Generational Differences:
- Gen X (born 1964-1980) shows highest investment interest at 57.5%
- Gen Z (late 1990s-2010s) ranks lowest at 52.7%
Income Correlation:
- 27% of earners making $50K-$100K/year own crypto
- 27% of $100K+ earners hold digital assets
- Only 15% adoption among sub-$50K earners
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Crypto Asset Popularity
| Rank | Cryptocurrency | Ownership Rate | Awareness Ranking |
|---|---|---|---|
| 1 | Bitcoin (BTC) | 12% | 1 |
| 2 | Ethereum (ETH) | 6.8% | 4 |
| 3 | Dogecoin (DOGE) | N/A | 2 |
| 4 | Bitcoin Cash (BCH) | N/A | 3 |
Interestingly, while ETH ranks second in ownership, it places fourth in brand recognition—trailing behind BTC, DOGE, and BCH.
Merchant Adoption Trends
Business Size Matters
- 85% of enterprises with $1B+ revenue accept crypto
- Adoption decreases with smaller business sizes
Payment Methods
Only 6.5% of transactions occur through native crypto wallets like Coinbase or Crypto.com. Most merchants prefer:
- PayPal
- Venmo
- Other hybrid payment platforms
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Benefits and Challenges
Advantages:
- 77.4% report lower payment processing costs
- 64% cite improved cash flow
Pain Points:
- Price volatility (primary concern)
- Lack of payment transparency
- Regulatory uncertainty
- Transaction tracking difficulties
Future Adoption Drivers
Among non-adopting businesses:
- 42% plan to implement crypto payments within 12 months
Top motivations:
- New customer acquisition (68%)
- Disintermediation (removing middlemen)
- Not transparency or cross-border improvements
Technical integration challenges remain the biggest barrier, cited by 68% of hesitant merchants.
FAQ Section
Q: Why do higher earners prefer crypto investments?
A: Disposable income allows for greater risk tolerance, plus crypto serves as both investment vehicle and inflation hedge.
Q: What makes Bitcoin more popular than Ethereum for payments?
A: BTC's first-mover advantage, stronger brand recognition, and relative price stability compared to ETH.
Q: How can merchants mitigate crypto volatility risk?