Financial institutions (FIs) are bracing for an anticipated increase in cryptocurrency use, and competition among FIs to support corporate cryptocurrency payments is likely to be fierce.

Cryptocurrency Payments Opportunity, a PYMNTS and i2c collaboration, reported that while only 10% of banks currently allow access to at least one form of cryptocurrency, 75% of FIs plan to expand their support for virtual currencies. over the next 12 months.

Get the report: The Cryptocurrency Payment Opportunity: Fostering the Adoption and Use of Crypto Around the World

“Consumer and business perception of cryptocurrencies has evolved dramatically over the past decade, from insider discussions to a topic taken more seriously and followed by financial firms and the media to to where we are today, which is real discussions around tables, companies and boards, ”i2c president Jim McCarthy told PYMNTS.

Observe the Potential Benefits of Cryptocurrencies

Businesses are analyzing how virtual currencies could meet their payment needs. Those looking to go global are particularly interested in crypto as they look for solutions that can help them alleviate the problems associated with cross-border business-to-business (B2B) payments.

“Because it is by nature a network-based asset, crypto moves more easily across borders because you don’t have to go through a myriad of correspondent banks to transfer value,” McCarthy said. “It also removes much of the opacity that comes with transferring money through traditional methods.”

As a growing number of businesses and consumers use virtual currencies for their payments and financial needs, businesses, FIs, and FinTechs are considering the potential benefits of cryptocurrencies. The growing interest of businesses and consumers in cryptocurrencies suggests that FIs who pioneered digital asset technology are well positioned to increase customer and customer loyalty.

Develop transparent transaction methods

However, supporting smooth and fast cryptocurrency payment experiences can still be difficult. This is especially evident when it comes to cross-border payments, which are notoriously complex and fraught with friction, even when fiat currencies are used. Changing regulations, the availability of key digital infrastructure, and trust can all hamper the adoption of cryptocurrencies.

As a result, international businesses wishing to make cross-border B2B payments via cryptocurrencies could face significant hurdles, which means banks need to carefully consider the trends surrounding virtual currencies around the world. Eliminating sticking points is key to the growth and adoption of cryptocurrencies globally.

“From our perspective, supporting millions of encrypted cards around the world on a single global platform, we see tremendous innovation, growth and potential over the next few years,” said McCarthy. “However, this optimism is tempered by the idea that as crypto becomes more mainstream, it will bring more and more difficulty in the form of regulation, compliance and oversight on the part of central banks. [and] regulators. “

Banks should continue to closely monitor how businesses and consumers interact with cryptocurrencies to determine how best to position themselves as the dominant forces in the space. Consumers and businesses are likely to be increasingly comfortable with the use of digital assets for payments, which means that developing transparent and fast cryptocurrency transaction methods will be essential for FIs.

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