Cryptocurrency payments continue to expand in popularity and demand on a global scale. Cybercriminals are likely the most vocal proponents of cryptocurrency payments, as it is their favourite method of getting ransom monies.

However, it is not just cybercriminals who benefit from cryptocurrency payments. Numerous firms are already rewarding cryptocurrency payments through a variety of programmes and offers. MasterCard, for example, recently stated that it would enable its network partners to enable their customers to purchase, sell, and retain cryptocurrencies via a digital wallet, as well as reward them with digital currencies through loyalty programmes.

Another example is Geolancer, a Quadrant-developed programme for manually verifying Points of Interest data on the ground. It compensates Geolancers who collect POIs in their neighbourhood with cryptocurrency.

El Salvador became the first country in the world to adopt bitcoin as legal cash earlier this month. Additionally, The Economic Times noted that Indian, Pakistani, Bangladeshi, and Filipino expats in Qatar are increasingly experimenting with cryptocurrencies to send money home and avoid costs levied by wire transfer providers and other middlemen.

However, the situation may be different in China. All financial transactions involving cryptocurrency have been declared illegal by the government. After years of salvos against volatile currencies, this move now brings the hammer down on China's digital trading.

Singapore's adoption of cryptocurrency payments

Singaporeans have been reported to be investing in cryptocurrencies or utilising them as a form of payment. Indeed, 37% of Singaporeans were found to be paying for purchases using cryptocurrency or interested in doing so, according to the latest Worldpay from FIS' Generation Pay report.

The study examines different generations' buying habits, purchase experiences, and payment preferences, ranging from Gen Z through baby boomers. While there is still a long way to go before cryptocurrencies become a widely accepted means of payment, the strong adoption rate demonstrates that more people are becoming aware of how crypto payments work.

According to the latest Worldpay from FIS' 2021 Generation Pay research, a sizable percentage of Singaporeans (37 percent) are using or interested in using cryptocurrencies to pay for purchases. The research examines the spending habits, purchasing experiences, and payment preferences of different generations, from Gen Z to baby boomers. Gen Y (58 percent) is the most receptive to crypto payments, while boomers (16 percent) are the least receptive.

On average, data indicate that when it comes to using digital currencies as a method of payment, central bank digital currencies CBDCs (23 percent) are favoured above cryptocurrencies (11 percent). Another 22% answered that they had no preference and are happy to pay with either method. On a generational level, Gen Zs (18%) have the lowest level of interest in CBDCs. 24 percent indicated they will utilise both CBDCs and cryptocurrencies. Similarly, a sizeable proportion of Gen Ys (29 percent) stated that they will utilise both CBDCs and cryptocurrencies.

For many who love cryptocurrencies, the fundamental reason is that they are decentralised and provide them with greater control over their money (67 percent ). This is an especially compelling cause for Gen Y to exist (74 percent ). On the other hand, people who support CBDCs argue that they are more secure because they are backed by the government (64 percent ). Additional reasons for their aversion to cryptocurrencies include a belief that crypto wallets are more vulnerable (31%), and that cryptocurrencies could be utilised for unlawful purposes (30 percent).

Developing a cryptocurrency ecosystem

According to Phil Pomford, General Manager for Global eCommerce, APAC, and WorldPay at FIS, the globe is currently experiencing the second wave of widespread crypto buying, with significant institutional money entering the market but still a few years away from widespread cryptocurrency use.

He did, however, remind out that the environment continues to face a variety of issues. For example, Phil highlighted that crypto merchants in APAC are having difficulty navigating new rules and locating a partner bank in the region. Additionally, several settlement banks are unwilling to execute transactions for cryptocurrency merchants using their banking facilities.

"However, we are seeing an increase in demand for crypto in particular industries, such as NFT marketplaces built on DLT and requiring the use of cryptocurrency. It's also worth mentioning that significant firms in payments and banking are reaffirming their faith in the crypto field, such as DBS Bank, which recently launched its own crypto exchange," Phil added.

Phil noted that FIS is increasing consumer access to crypto by facilitating card-to-crypto payments on exchanges. Crypto exchanges are increasing their use of card payments in place of the more traditional dependence on bank transfers. As cryptocurrency gains traction, customers are increasingly looking for simple, convenient payment solutions that allow them to make crypto-based purchases using credit cards and other well-known financial instruments.

"Our global relationship with cryptocurrency merchants (recent examples include CEX.IO, Moonpay, and OKCoin) is also influencing how other retailers see cryptocurrency." Retailers presently require fiat cash to back crypto, and this is dependent on the exchanges' ability to settle transactions," Phil concluded.

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