Crypto-based remittances on the rise

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From in-person retail to digital options, the decade-long shift in the way consumers send money abroad has broadened the possibilities for cross-border transfers, and people are now favoring cheaper options that are available to them. allow money to be transferred easily, securely and conveniently across borders.

This explains why of the 16% of U.S. consumers who send a total of $ 76 billion a year in remittances, the majority of those who own cryptocurrency have found it to be a viable method to cross-border payments and a more attractive alternative to traditional payments. forms of payment.

Read more: The Digital Currency Shift: The Cross-Border Remittances Report

This is supported by data collected in a recent PYMNTS report on cross-border remittances, which shows that half of all consumers (51%) using remittance services own cryptocurrencies, up from around 12. % of the general US population and they are also the most likely to use it to send money across borders.

Published in conjunction with the Stellar Development Foundation, the research found that many consumers have increased the frequency with which they have sent money overseas in the wake of the pandemic, and their need for cheaper and more convenient alternatives. led them to turn to virtual currencies for cross-trade. border remittances.

Additionally, cryptocurrency has become an accepted payment method at many retailers and is available from many Payment Service Providers (PSPs), making it easier for cryptocurrency owners to use it.

The study, which is based on the results of a survey of more than 2,000 adult consumers representative of the U.S. population, also found that nearly a quarter (23%) of consumers surveyed representing eight million adults who made payments online to friends or family members in other countries used at least one type of cryptocurrency, while 13% of those surveyed said digital currencies were their method most popular payment method for cross-border remittances online.

And cryptocurrency users tend to prefer innovative payment methods like mobile wallets, according to the study, with 46% more likely to send funds directly to a mobile wallet, which offers the convenience. and the speed they want.

In comparison, among consumers who send cross-border remittances and have never used cryptocurrencies, the use of mobile wallets remains low, with only 30% of those who make bank transfers sending them to mobile wallets. .

See also: Risk of regulatory overshoot threatens blockchain, innovation and crypto growth

Cryptocurrency: Nigeria leads the African pack

In developing regions like Africa, the market for crypto-based remittances is booming, given the profitability of transferring money across borders.

And Nigeria is leading the way in the use of cryptocurrency on the continent, ranking third in the world in terms of countries with the highest bitcoin trading volumes last year, behind the United States. and Russia, according to the BBC.

Transactions worth over $ 400 million were generated in this West African country in 2020, with more than 1.1 million cryptocurrency transactions recorded per month on the platform. world cryptocurrency trading, Paxful, the same year.

Related News: Bitcoin Daily: Nigerian School to Accept Crypto for Fee Payments; JPMorgan Bearish on Bitcoin

In June, a private Kano state school, the New Oxford Science Academy, even said it had started accepting payment of tuition fees in cryptocurrency, in defiance of repeated attempts by the government to restrict its use in recent months.

On the business side, players like the Pan-African cryptocurrency exchange Yellow Card are capitalizing on Nigerians’ demand for cryptocurrency to tap into the growing market.

Since launching in the country in 2018, US and Africa-based FinTech has since evolved into a crypto-based agency banking business, with plans to allow Africans to send remittances. using its crypto service. Yellow Card’s goal of making cryptocurrencies like Bitcoin, Ethereum and USDT Stablecoin accessible to everyone on the continent has been successful so far, seeing an increase of almost 30 times the number users in Africa since the start of the pandemic.

The company recently announced $ 15 million Series A funding, led by key foreign investors including Jack Dorseys Square and Coinbase Ventures, to continue to expand beyond the 12 African countries in which it currently operates.

Commenting on the increase, Yellow Card Bitcoin Director Munachi Ogueke said the turn was validation that Africa has a major place in the crypto industry, adding that with the access brought by Yellow Card , fueled by this surge, we can now let crypto proliferate and be a reliable catalyst for people across the continent.

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NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASING JOURNEY – SEPTEMBER 2021

By the way: 80% of consumers want to use non-traditional payment options like self-service, but only 35% were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a collaboration between PYMNTS and Toshiba, analyzes over 2,500 responses to find out how merchants can address uptime and perception issues to meet the demand for free kiosks -service.

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