The Payments Industry Crypto Monitor full report outlines the recent trends and interest in crypto infrastructure, tokens, and services for businesses and institutions. The findings are based on a survey conducted by The Paypers and Innopay with financial industry participants. It highlights the drivers and barriers of crypto product adoption, the benefits crypto brings to payments/transactions, and the impact regulation and geopolitics play.
The report’s key message is that the financial industry is willing to understand and adopt crypto topics/payments/transactions if it learns more about it, regulation is clearer, and KYC/AML challenges are overcome. The majority of respondents (88%) expect crypto to impact the current payment infrastructure, which is why some are already ‘testing the water’. But strikingly, many respondents are not yet offering crypto products or services due to unclear regulations and AML/KYC challenges.
The Payments Industry Crypto Monitor stresses that:
The main crypto product drivers are the innovation of current services and offerings, the changing demand from customers, and opportunities for new business models.
The barriers to crypto products are unclear regulation, followed some way behind by AML/KYC challenges.
The security, speed, and low cost of crypto in comparison with today’s payment infrastructure will make an impact. However, the friction points of crypto in terms of AML/KYC should not be neglected.
The areas that would most benefit from crypto infrastructures are payment settlement and innovation, financial inclusion, and liquidity options for merchants and corporates.
Regulation, competitive forces, and geopolitical developments are seen as the three most important crypto adoption drivers.
All in all, members of the payment industry seem willing to offer crypto products and services. These are preparing their organisations by gaining more knowledge about technology and customer demands.
If you are interested to find out more about Innopay, feel free to reach out to Douwe Lycklama, Owner and founding partner, INNOPAY at Douwe@innopay.com.