The rise of cryptocurrency as a legitimate payment method continues to gain momentum, supported by growing consumer interest and increasing merchant adoption. A joint report titled Paying With Cryptocurrency, released by payment data platform PYMNTS and leading crypto payment service provider BitPay, offers deep insights into how digital currencies are being used in real-world transactions. Based on a survey of 2,334 consumers and 202 high-revenue merchants (each with annual sales exceeding $250 million), the report reveals key behavioral trends, adoption drivers, and challenges in the evolving crypto payments landscape.
This comprehensive analysis distills the most critical findings from the original study, delivering actionable insights for individuals and businesses navigating the future of digital finance.
Consumer Behavior: Who’s Using Crypto and Why?
Understanding consumer motivations is essential to predicting the long-term viability of crypto payments. According to the report, 55% of consumers who held cryptocurrency in the past year did so primarily for investment purposes. This dominant trend underscores the dual role of digital assets—as both speculative instruments and potential transaction tools.
Among generational cohorts, Generation X (born 1964–1980) shows the strongest investment inclination, with 57.5% using crypto for investment—slightly ahead of the overall average. In contrast, Generation Z (born late 1990s to early 2010s) has the lowest investment-driven adoption rate at 52.7%, suggesting younger users may be more interested in utility or cultural alignment rather than pure financial gain.
A significant correlation emerges between income level and crypto engagement: higher earners are far more likely to participate. Specifically:
- 27% of consumers earning $50,000–$100,000 held crypto in the past year
- 27% of those earning over $100,000 also held crypto
- Only 15% of those earning under $50,000 reported ownership
This income-based disparity highlights that while crypto is becoming more accessible, active participation remains concentrated among financially secure demographics.
Transaction use—sending or spending crypto—ranks as the second most common reason for holding digital assets, cited by approximately 30% of users. This indicates a growing appetite not just for holding, but for using crypto in everyday commerce.
Most Held and Recognized Cryptocurrencies
When it comes to specific digital assets, Bitcoin (BTC) reigns supreme in ownership, with 12% of surveyed consumers reporting they hold it. Ethereum (ETH) follows at 6.8%, reflecting its strong position as the foundation for decentralized applications and smart contracts.
Interestingly, awareness does not always align with actual holdings. While ETH is the second-most held cryptocurrency, it is not the second-most recognized. After BTC, Dogecoin (DOGE) ranks highest in public recognition—likely due to viral social media attention—followed by Bitcoin Cash (BCH), with ETH coming in third in terms of familiarity.
This disconnect suggests that mainstream visibility often stems from cultural momentum rather than technical utility or adoption rates.
Merchant Adoption: Scaling Crypto Payments in High-Revenue Businesses
On the business side, the report reveals a clear pattern: larger companies are more likely to accept crypto payments. Among enterprises with annual revenues exceeding $1 billion, a striking 85% already support cryptocurrency transactions.
This high adoption rate among industry leaders signals confidence in crypto’s long-term role in global commerce. However, integration methods vary significantly across platforms.
Despite the existence of native crypto wallets like Coinbase Wallet and Crypto.com, their direct use in retail transactions remains limited—only 6.5% of merchants reported customers using these tools for payments. Instead, the majority of crypto-enabled transactions occur through hybrid fintech platforms such as PayPal and Venmo, which allow users to spend crypto without leaving traditional financial rails.
This preference highlights a crucial insight: widespread adoption depends less on pure decentralization and more on seamless user experience integrated within familiar financial ecosystems.
Perceived Benefits of Accepting Crypto
For merchants who have embraced crypto payments, the advantages are tangible. Around 77.4% believe that processing crypto transactions is less expensive than traditional payment methods like credit cards, which often carry high interchange fees (typically 2–3% per transaction).
Lower processing costs translate directly into improved profit margins—especially impactful for high-volume sellers.
Additionally, accepting crypto enables access to a new demographic of tech-savvy, digitally native customers who prefer alternative financial systems. For many businesses, this customer acquisition potential outweighs other benefits often touted in crypto circles.
Challenges Facing Crypto Payment Integration
Despite the advantages, several obstacles hinder broader adoption. The top challenge cited by merchants is price volatility—the unpredictable swings in cryptocurrency values can create accounting complexities and revenue uncertainty.
Following closely are concerns about:
- Lack of transparency (potentially linked to pseudonymous transaction trails)
- Regulatory uncertainty, with evolving compliance requirements across jurisdictions
- Difficulty tracking payments, especially when reconciling with existing accounting systems
These operational hurdles are particularly acute for large businesses managing complex supply chains and financial reporting obligations.
For the merchants not currently accepting crypto, about 68% cite technical difficulties as a primary reason for hesitation. Setting up secure wallets, ensuring compliance, and integrating with existing point-of-sale systems can be resource-intensive without specialized expertise.
Yet, there is strong forward momentum: approximately 42% of non-adopters plan to integrate crypto payments within the next 12 months.
What Drives Future Adoption? New Customers Lead the Way
When asked about their motivations for adopting crypto payments in the future, merchants ranked gaining new customers as the top incentive. This reflects a strategic shift—from viewing crypto as a niche experiment to recognizing it as a tool for market expansion.
Second was the desire to eliminate intermediaries, reducing reliance on banks and payment processors that charge fees and impose settlement delays.
Surprisingly, benefits frequently emphasized by blockchain advocates—such as increased transparency and improved cross-border payments—were not primary motivators for most businesses. While these features hold long-term promise, immediate commercial incentives remain centered on cost savings and customer growth.
Frequently Asked Questions (FAQ)
Q: Do most consumers use crypto for spending or investing?
A: The majority—55%—hold cryptocurrency primarily for investment. Only about 30% use it for transactions, indicating that speculative value still drives most adoption.
Q: Are big companies more likely to accept crypto?
A: Yes. Among businesses earning over $1 billion annually, 85% accept cryptocurrency payments, showing strong institutional confidence in digital assets.
Q: Why don’t more merchants accept crypto yet?
A: The main barriers are technical complexity (cited by 68%), price volatility, regulatory uncertainty, and difficulties tracking transactions.
Q: Is Bitcoin still the most popular cryptocurrency among users?
A: Yes. BTC is both the most held (12%) and most recognized cryptocurrency. Ethereum ranks second in holdings (6.8%) but third in public awareness.
Q: What’s driving future merchant adoption?
A: The top reason is acquiring new customers. Reducing transaction fees and cutting out intermediaries are also key motivators.
Q: Are native crypto wallets widely used for payments?
A: No. Only 6.5% of merchants report customers using wallets like Coinbase Wallet or Crypto.com directly. Most prefer platforms like PayPal that integrate crypto quietly into traditional payment flows.