Cryptocurrencies are quickly becoming the preferred payment method by merchants and consumers in many countries across the world. However, a recent survey conducted by Ripple and the Faster Payments Council suggests that Latam merchants might be slower to adopt cryptocurrencies for payments than merchants from other regions. The survey, which involved close to 300 payment leaders from a worldwide level, suggested that after three years, crypto payments will have become a widespread phenomenon throughout the region. This article explores what this survey implies, as well as the potential benefits of cryptocurrencies becoming a mainstream payment option in Latam.
Cryptocurrency Payments Imminent
Ripple recently released the results of a crypto payments study, which examined the potential impact of cryptocurrency on financial and payment institutions all over the world. The survey was conducted among payment institutions and merchants to measure their interest in and willingness to adopt cryptocurrency-based solutions more than three years from now.
The study showed that Latam merchants will take longer to accept cryptocurrency payments compared to other regions around the world. Of the respondents who were consulted in Latam, only 67% predicted a cryptocurrency payment boom in three years’ time. This is significantly lower than what was predicted from respondents from other regions, such as Africa and APAC.
These two regions have some of the most favorable predictions for massive implementation of cryptocurrency payments. Africa respondents registered the highest number at 85%, followed by APAC at 82%. Europe and APAC also enjoy relatively good predictions for adoption of cryptocurrency payments in more than three years’ time.
The results suggest that these two regions are more likely to lead the way toward mass adoption of cryptocurrency payments than Latam, at least during the initial stages of its rollout. While this could be a disheartening prospect for those hoping for an immediate acceptance of crypto payments in Latam, it also speaks volumes about the willingness of merchants and payment institutions in these countries to embrace digital currencies down the line.
Benefits of Crypto Payments
As Ripple’s survey suggests, Latam merchants are expected to embrace crypto payments massively after three years. To understand why cryptocurrencies will become more widely adopted by the public, we must first look at the benefits that crypto payments offer. Blockchain-based crypto payment systems offer lower costs, reduced process complexity, and enhanced transparency. With these features, merchants and customers can make seamless cross-border payments without any hassles. It is estimated that financial institutions could save around $10 billion annually by 2030 if they use blockchain technology to settle payments.
The lower cost of using cryptocurrencies for payments is seen as the biggest benefit by many users. Since it eliminates both the need for a third party payment processor and the need to purchase currency exchange fees, it makes it cheaper to make and receive payments. In addition to this, it also enables users to easily convert their funds into fiat money in a matter of minutes. This is especially beneficial in countries like Argentina where QR payments involving cryptocurrencies are becoming increasingly popular.
In conclusion, cryptocurrency payments have many advantages over traditional payment methods. For Latam merchants, these benefits should encourage them to embrace this new form of payment in the near future. It is estimated that after three years there will be mass adoption of crypto payments in Latam region, leading to significant savings for businesses and individuals alike.
Overall, crypto payments are expected to become mainstream across Latam within the next three years, according to a Ripple survey. This is thanks to the immense benefits that crypto payments provide merchants and consumers alike, such as improved security, faster payments, and cost savings. As such, the adoption of crypto payments in Latam looks set to skyrocket over the coming years.