The crypto hype train has been chugging strongly for a while and does not seem to be going away as a variety of sources seem to imply mainstream adoption isn’t a case of ‘if it happens’ but a matter of ‘when it happens’. New global research has found nearly 40 per cent of crypto owners would be likely to switch primary banks to one that offers crypto products; with this in mind, Visa has announced the launch of its Global Crypto Advisory Practice, an offering within Visa Consulting and Analytics (VCA) designed to help clients and partners advance their own crypto journey.
For financial institutions eager to attract or retain customers with a crypto offering, retailers looking to delve into NFTs, or central banks exploring digital currencies, understanding the crypto ecosystem is a vital first step. Through their work with more than 60 crypto platforms, Visa’s global network of consultants and product experts have deep expertise to help financial institutions evaluate the crypto opportunity, develop concrete strategies, and pilot new user experiences and innovations like crypto rewards programs and CBDC-integrated consumer wallets. This comes off the back of Visa’s research that has found 94 per cent of financial decision-makers around the world are aware of cryptocurrencies.
“We’ve seen a material shift in our clients’ mindset in the last year, from a desire to explore and experiment with crypto, to actually building a strategy and product roadmap,” said Carl Rutstein, Global Head, Visa Consulting and Analytics.
Visa Study Explores Consumer Attitudes and Adoption of Crypto
Client interest in building crypto solutions comes as new Visa research shows significant awareness and adoption among consumers globally. In a new global study, The Crypto Phenomenon: Consumer Attitudes & Usage Visa found that nearly one-third of respondents have directly engaged with crypto – either as an investment vehicle or as a medium of exchange. And globally, nearly 40 per cent of crypto owners surveyed report they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months.
“Crypto represents a technological shift for money movement and digital ownership,” said Terry Angelos, SVP, and global head of fintech, Visa. “As consumers change their approach to investing, where they bank, and their views on the future of money, every financial institution will need a crypto strategy.”
Surveying more than 6,000 financial decision-makers across eight markets (Argentina, Australia, Brazil, Germany, Hong Kong (SAR), South Africa, the UK and US), the Visa study uncovered the following insights:
- The crypto headlines are having an impact.
Awareness of crypto is almost universal at 94 per cent globally among survey participants with discretion over their household finances.
- A significant segment is using or investing with crypto:
Nearly one in three crypto-aware adults already own or use cryptocurrency, and the majority of that group (62 per cent) say their use has increased in the past year.
- Engagement is higher in emerging markets.
37 per cent of crypto-aware consumers in emerging markets use or own crypto compared to 29 per cent in developed markets.
- Key motivators include wealth-building and belief in crypto as the future of financial services.
The biggest drivers of owning and using cryptocurrency are to take part in the “financial way of the future” (42 per cent) and to build wealth (41 per cent) – both forward looking motivators.
- Crypto cards and crypto rewards are attractive.
Among current crypto owners, 81 per cent express interest in crypto cards, which allow you to convert and spend crypto at the retailers where you shop in the same way you can use a debit or credit card. 84 per cent are interested in crypto rewards, which allow you to earn crypto as a reward for your card spending.
- Consumers are willing to switch banks in search of crypto products.
Globally, 18 per cent of survey participants say they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months. This is particularly true for emerging markets, which jumps to 24 per cent. Among consumers who already own cryptocurrency, nearly 40 per cent are willing to make the switch.