According to the most recent payments survey, merchants in Latin America are forecasted to take longer to adopt cryptocurrency payments compared to merchants in other regions. Ripple and the Faster Payments Council conducted the survey of close to 300 payment executives worldwide, finding that crypto adoption will increase in the following three years.
Ripple Study Highlights Latam Merchants Will Take Longer to Adopt Crypto Payments
The latest study on crypto payments was conducted by Ripple and the Faster Payments Council, a U.S. membership-based organisation, and it shows that Latam merchants need more time to implement cryptocurrency-based solutions than those in other parts of the world. The paper, which seeks to measure and understand cryptocurrency’s potential impact on the payments sector in the future, illustrates that merchants in other regions will be ahead even with the issues Latam is facing related to inflation and fiat currency devaluation.
The survey included almost 300 payment institutions and 67% of them believe that the crypto boom has in fact increased the usage of crypto payments. Latam merchants are expected to begin adopting crypto payments in three years. Whereas, when it comes to other regions such as Africa, the survey found that more than 80% of respondents think that at least 50% of merchants will use crypto payments within three years.
This region is not as advanced as other regions, like APAC, and that might be one of the reasons why they are facing a slower adoption rate when it comes to crypto payments.
The Future of Crypto Payments
The survey offers an optimistic outlook for crypto payments, viewed by industry leaders as a way to supplement the existing system. The report explains the many advantages of the new blockchain-based system, such as reduced complexity and costs, as well as increased transparency.
One of the most important advantages of a new crypto payment system is the capability to make international settlements much quicker and less expensive. According to Juniper Payments, a member of the Faster Payments Council, organizations could save up to $10 billion when using alternative crypto systems to settle payments.
This is an essential advantage to Latam, as the region heavily relies on international payments and remittances. The study highlights the potential of crypto payments to improve the existing infrastructure, with many payment executives believing they will be the future of payments.
According to a recent survey from Ripple, merchants in Latam are primed to embrace crypto payments in the next three years. The poll, which was conducted among more than 200 institutions in the region, found that almost 70% of participants believe that blockchain technology has the greatest potential for cheaper payments.
In countries like the United States, adoption of digital payments is already on the rise. In Argentina, QR payments, which can include crypto transactions, have been hitting record levels.
Do you think crypto payments will be widely accepted in Latam in the next few years? Please leave your comments below.
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