The majority of consumers are becoming more reliant on digital payment solutions, from QR code payments to mobile banking apps, as mobile technology becomes more prevalent. In addition, crypto has become the next trend on social applications as more consumers have jumped in the bandwagon of the crypto trend.
Government-led initiatives have been essential in promoting cashless financial systems, with central banks in countries such as Singapore and the Philippines adopting cashless transactions during the COVID-19 pandemic.
This growth trend in cashless payments is also laying the groundwork for the widespread adoption of cryptocurrency with millions of crypto users globally. With the impact of the global pandemic, the immense gap between rich and poor has become evident.
Moreover, as a result of COVID-19, many people across the world were unable to gain access to traditional financial services, as the world shut down in lockdown. On the contrary, anyone with an internet connection and crypto wallet can transfer their assets internationally without minimum balance in their accounts.
Future Digital Transactions Are Crypto
Crypto applications use decentralized blockchain technology, a transaction process with peer-to-peer in the absence of financial intermediaries such as bankers or brokerage firms. Simultaneously, similar fees for cryptocurrencies are frequently less than 1% – regardless of the transaction amount.
Additionally, permissionless platforms exist, which means that anyone with a crypto wallet and an internet connection can lend, deposit, or trade one‘s crypto without the need for confirmation by a central authority or mediator.
Besides, crypto transactions save time and money. Wire transactions can take several days to complete, whereas cryptocurrency transfers take only minutes. The widespread adoption of digital payment technologies such as QR codes and biometrics has shown promising signs that consumers are heavier digital users than ever before.
Aside from new payment technologies, the emergence of retail investments has resulted in a fundamental change in the investment landscape, with trading activity doubling over the previous year. User-friendly platforms like well-known crypto counterparts like Coinbase, Binance have made investing more applicable to non-investors.
In the near future, cryptocurrency will establish its new ecosystem in financial services. Though it will not replace the current financial system but will exist for a new generation of digital-first, financially savvy users. Besides, it might take some time for consumers to use cryptocurrency, the nascent technology will eventually prove its worth by providing cheaper, safer, and more inclusive financial services to all.
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