The Cryptocurrency Payments Report: How Consumers Want To Use It To Shop And Pay, a PYMNTS and BitPay collaboration, examines U.S. consumers’ current interest in and future plans to own cryptocurrency and use it to make payments. The Report analyzes a census-balanced survey of 8,008 U.S. consumers who were current and former Cryptocurrency cryptocurrency users and cryptocurrency nonusers between Feb. 8 and Feb. 23, 2021, to gain a comprehensive overview of how they used cryptocurrency to make payments. Payments Report How Consumers Want To Use It To Shop And Pay May 2021 © 2021 PYMNTS.com All Rights Reserved Table of Contents 01 03 13 17 Introduction Cryptocurrencies Barriers to Future and gain momentum adoption potential growth as a valid payment option 21 23 Conclusion About Acknowledgment The Cryptocurrency Payments Report was done in collabo- ration with Bitpay, and PYMNTS is grateful for the company’s support and insight. PYMNTS.com retains full editorial control over the following findings, methodology and data analysis. © 2021 PYMNTS.com All Rights Reserved © 2021 PYMNTS.com All Rights Reserved 6 The Cryptocurrency Payments Report Introduction ryptocurrencies have come a long Consumers’ interest in buying and spending We discovered that 16 percent of the U.S. Eighteen percent of the adult population is way since bitcoin’s 2009 debut. The cryptocurrency continues to rise, propelled population either currently owns cryptocur- likely to use cryptocurrency to make a pur- once-obscure cryptocurrencies that by the fear of missing out on both a poten- rencies or once did. Thirty million consumers chase, some 46 million consumers, including Cwere the domain of only the most ardent tial investment opportunity and a way to currently own cryptocurrency, and nearly 24 17 million nonowners. Those who have made enthusiasts are now one of the most talked- use these currencies as an alternative to million consumers who are either former purchases with it bought everything from about topics in payments. Trading apps such their own fiat currencies to pay for retail owners or nonowners plan on acquiring it real estate and jewelry to groceries and food as Robinhood and Coinbase make buying purchases. in the future. In all, 29 percent of consum- from delivery aggregators. and selling cryptocurrency more accessi- ers are likely to purchase cryptocurrency, ble to the retail investor. Influencers such as PYMNTS, in collaboration with BitPay, set out whether they are owners or not. What is driving consumers’ growing interest Elon Musk and Mark Cuban stoke interest. to examine consumers’ current interest in in using cryptocurrency for making day-to- and future plans for ownership and use of We also found that current and former users day payments, and why should merchants Cryptocurrency ownership soared 63 per- cryptocurrency. PYMNTS conducted a cen- — and even nonusers — are eager to own and pay attention? The following study details cent in 2020 alone, and so has its valuation. sus-balanced survey of 8,008 United States use cryptocurrencies for making purchases the insights. The cryptocurrency market’s valuation consumers who were current and former in the future, going so far as to say that they exceeded $2 trillion for the first time in April cryptocurrency users and cryptocurrency would if more merchants accepted it. of this year.1 nonusers between Feb. 8 and Feb. 23, 2021. 1 Chan, J. Crypto Market Value Exceeds $2 Trillion for First Time. Entrepreneur. April 2021. .https://www.entrepreneur.com/article/368913. Accessed May 2021. 01 © 2021 PYMNTS.com All Rights Reserved © 2021 PYMNTS.com All Rights Reserved 02 Cryptocurrencies gain momentum as a valid payment option © 2021 PYMNTS.com All Rights Reserved 04 The Cryptocurrency Payments Report wo-thirds of current and former Consumers’ comfort level with making pur- Cryptocurrencies owners purchased cryptocurrencies chases using cryptocurrencies is high among Cryptocurrency to make transactions, and 93 percent current owners but is notably strong with have gained Tof cryptocurrency owners would consider those who have never owned cryptocur- holders are young, making purchases with it in the future. rency. Fifty-seven percent of former or momentum with present cryptocurrency owners made at male and millennial. PYMNTS’ research shows that 12 percent of least one purchase using it last year, and consumers Who are these cryptocurrency owners? consumers (a projected 30 million) currently 59 percent of consumers who never owned Our research shows that cryptocurrency as a trusted own one or more cryptocurrencies, 4.5 per- cryptocurrency are interested in using it to owners are more commonly younger, middle- cent (11.5 million) have owned them in the make purchases in the future. The fact that payment option. income and male. Nineteen percent of mil- past and 17 million nonowners may acquire more than half of consumers who have lennials currently own cryptocurrencies, as cryptocurrency for making purchases in the never owned cryptocurrency are interested do 16 percent of middle-income consum- near future. in using it in the future illustrates that con- ers (those earning between $50,000 and sumers now perceive cryptocurrencies as a FIGURE 1: $100,000 per year), 15 percent of men and trusted payment option. Who are the cryptocurrency owners? 8.5 percent of women. 1a: Cryptocurrency ownership status 1b: Cryptocurrency ownership status, by income As many as 46 million consumers (18 per- Millennials and bridge millennials are the cent of the adult population) would consider Have never owned Have never owned most likely of all to already own cryptocur- 83.7% 0000000084 86.4% 0000000086 using cryptocurrency for retail purchases, 78.6% 0000000079 rency or to have owned it in the past. Our regardless of whether they currently own 85.6% 0000000086 research shows that 28 percent of all mil- cryptocurrencies or not. This means that Have owned in the past lennials and bridge millennials either own or 4.5% 0000000005 purchases using cryptocurrency could con- Have owned in the past have owned at least one type of cryptocur- 4.0% 0000000004 servatively represent around 1 percent of 5.8% 0000000006 rency, compared to 17 percent of Generation retail sales in the next 12 months. Currently own 3.8% 0000000005 X consumers and only 5.2 percent of baby 11.8% 0000000012 Source: PYMNTS.com | The Cryptocurrency Payments Report boomers and seniors, by contrast. Currently own 9.6% 0000000010 15.6% 0000000016 10.6% 0000000011 Source: PYMNTS.com | The Cryptocurrency Payments Report More Than $100K $50K-$100K Less than $50K TABLE 1: Cryptocurrency ownership status, by generation Generation Z Millennials Bridge millennials Generation X Baby boomers and seniors • Has never owned 80.3% 72.4% 72.5% 83.3% 94.7% • Has owned in the past, but not now 4.1% 8.5% 8.2% 3.5% 2.0% • Currently owns 15.6% 19.1% 19.3% 13.2% 3.2% Source: PYMNTS | The Cryptocurrency Payments Report 06 05 © 2021 PYMNTS.com All Rights Reserved The Cryptocurrency Payments Report onsumers are looking to use crypto- Seventy-eight percent of millennial cryptocur- Demand and interest in using cryptocurrency for Millennials are currency for making purchases both rency nonowners are interested in purchasing making day-to-day purchases is also particularly big and small. Nearly a quarter of cur- at least one product type using cryptocurrency, high among millennials, especially for streaming particularly Crent or former cryptocurrency owners have used second only to Gen Z (82 percent). services, grocery purchases, online gaming and cryptocurrency to purchase groceries and retail computer-related products (29 percent each) interested in products as well as to make online gaming or The top five things current and former millennial and more routine travel and leisure-related pur- paying for retail gambling-related purchases, pay for streaming cryptocurrency owners would consider paying chases (22 percent). services or access financial services. A small but for with cryptocurrency are travel and leisure (62 products, streaming significant share of nonowners are interested in percent), real estate (60 percent), professional services and making purchases via cryptocurrency in these services (58 percent), furniture and appliances categories as well, especially for buying grocer- (57 percent) and financial services (56 percent). financial services ies (19 percent) and paying for streaming services using cryptocurrency. (20 percent). TABLE 2: Purchases and interest in purchasing using cryptocurrency, by generation and product categories Current or former owners who would Purchases using Current or former owners who have made consider purchasing in the future using cryptocurrency purchases using cryptocurrencies, by generation cryptocurrency, by generation Owners who Cryptocurrency nonowners Consumer Owners who would consider who would be spending Product categories purchased purchasing in interested in ranking Generation Z Millennials Bridge millennials Generation X Baby boomers Generation Z Millennials Bridge millennials Generation X Baby boomers the future purchasing and seniors and seniors At least one category 57.4% 92.6% 58.7% - 72.2% 63.8% 62.7% 50.2% 28.1% 96.4% 93.1% 93.3% 92.9% 85.0% Groceries 25.3% 51.4% 19.1% 3 29.8% 28.6% 28.6% 21.5% 14.2% 53.6% 51.1% 53.2% 54.5% 42.3% Online gaming or gambling 25.1% 48.6% 13.9% 13 26.2% 28.6% 28.4% 23.7% 12.2% 54.3% 50.5% 49.1% 49.5% 30.4% Streaming 24.1% 53.0% 20.4% 10 32.9% 28.8% 26.7% 18.1% 6.9% 47.6% 53.2% 54.9% 58.9% 44.6% Computers