PYMNTS Data Show Crypto’s Use for in-Store Purchases Is Growing

For a while now, bitcoin boosters have been trying to woo retailers and other merchants into taking the steps needed to accept it and other cryptocurrencies, arguing that crypto owners will go out of their way to buy from them.

Actually, crypto shoppers already are, according to data from PYMNTS newly released survey, “The U.S. Crypto Consumer: Cryptocurrency Use in Online and in-Store Purchases.”

Get the study: Cryptocurrency Use in Online and in-Store Purchases

In the month before they were surveyed, 30% of the crypto owners that participated bought something online with their digital assets. Surprisingly, fully 21% did the same in a brick-and-mortar retailer.

It’s the latter that really stands out, as very few large retailers — or small- to medium-sized businesses (SMBs) for that matter — accept crypto directly, either online or in stores. While that number is growing as crypto payments processors like BitPay (co-sponsor of PYMNTS’ U.S. Crypto Consumer report), Coinbase Commerce and Strike make the process easier for merchants, that 21% still suggests that the use of Mastercard- and Visa-branded crypto debit and prepaid cards, along with payments companies like CashApp and PayPal, is growing.

Read more: As Crypto’s Popularity Grows, Gateway Providers Help Merchants Accept It

Except that the PYMNTS survey crypto-owning consumers who used their digital assets actually used crypto wallets, both online and in stores more than they used cryptocurrency debit or prepaid cards.

Amongst online purchasers using crypto, 70% used digital wallets while 54% used debit or prepaid cards. For in-store purchases, 74% used digital wallets while 66% used debit or prepaid cards.

Either way, the study also suggested that 25% of the consumers who responded to the U.S. Crypto Consumer survey who said that they prefer — and therefore would be more likely to actively seek out — merchants that accept crypto are telling the truth.

“Interest in using cryptocurrency to pay for purchases is a reality,” the report found. “There is untapped potential for crypto owners to use it to make purchases instead of using more traditional payment alternatives.”

Don’t Fall Behind

In a March 24 blog post, No. 1 global point-of-sale (POS) terminal maker NCR said much the same thing, arguing that while “cryptocurrency adoption is still very much in its infancy,” it is “growing rapidly” as awareness and acceptance expands.

In addition, the U.S. Crypto Consumer report noted that those who felt most strongly about this skew wealthy, with 14% of respondents with incomes above $100,000 saying they would definitely prefer merchants who accept crypto, compared to about 8% of those in the $50,000 to $100,000 range and those below it.

Millennials and bridge millennials were the most crypto friendly, with a combined 32% saying the definitely prefer merchants that accept crypto.

For its part, NCR added in its blog post that retail adoption of cryptocurrency is coming and “as we’ve seen with other payment channels, once customers start to accept something, businesses would be well advised to ensure they offer it.”

Earlier this month, bitcoin payments processor Strike announced a deal that will allow NCR terminals to accept bitcoin payments via the Lightning Network, allowing for much faster and cheaper transactions.

See more: Bringing Bitcoin Firmly Into Payments, Strike Partners With NCR, Shopify, Blackhawk

“In a world in which retail adoption is still rare, this will give people a specific reason to visit a store where you can purchase — and eventually pay with — cryptocurrency,” NCR’s blog post added.