In recent years, an increasing number of people worldwide have been using cryptocurrencies as a method of transferring money abroad, appreciating their speed and lower costs compared to traditional banking services. A study conducted by PYMNTS shows that as many as 24% of respondents have used cryptocurrencies for international transactions, highlighting their growing popularity not only as an investment tool but also as a practical means of payment.
The key factors attracting users to cryptocurrencies are avoiding high bank fees and long transaction times. Particularly younger generations, who grew up in the digital era, are keen to adopt new technologies such as P2P (peer-to-peer) payments. Older generations may be more skeptical of these innovations.
Globally, the lack of access to traditional banking services is still a problem, especially in developing countries. According to a 2020 World Bank report, global remittance flows to low- and middle-income countries totaled $540 billion. Many people without access to banks must rely on intermediaries who charge high commissions, which is a significant financial burden for families relying on support from relatives working abroad.
Technological innovations, such as the M-Pesa mobile service in Kenya, demonstrate how technology can contribute to changing this situation. Similarly, blockchain technology has the potential to revolutionize cross-border transactions, reducing costs and shortening their duration. Blockchain provides security, transparency, and speed of transactions, eliminating the need for intermediaries.
Cryptocurrencies are not only becoming popular as a method of payment in international transactions but also changing consumer expectations towards payment services. Bitcoin, Ethereum, Litecoin, and other cryptocurrencies are gaining popularity, offering faster and often cheaper solutions than traditional P2P payment methods.
In the future, we expect cryptocurrencies and payment technologies to continue their dynamic development, driven by the needs of younger generations, for whom speed, accessibility, and cost are key factors. This may lead to further integration of these technologies into the mainstream economy, while simultaneously breaking down barriers in access and education for older generations.
Payment service providers will need to adjust their strategies to these changing conditions, focusing on consumer education and developing innovative and secure technological solutions. It is also expected that legal regulations concerning cryptocurrencies will evolve dynamically, impacting the market’s shape and its functioning.
You can read more about cross-border transfers involving cryptocurrencies in the expert article posted on the Quark exchange network’s blog.