Concerns about security remain the primary challenge for the widespread acceptance of cryptocurrency payments, as ongoing hacks and phishing schemes undermine the credibility of the sector.
Over 37% of investors noted that security risks are the main deterrent to using cryptocurrency for transactions, based on a survey of 4,599 participants conducted by a popular wallet service as part of their latest report.
Despite these concerns, 46% of users stated that they prefer crypto payments over traditional fiat currencies due to their speed and efficiency.
Source: Onchain Report
The wallet service has adopted various protective measures to prioritize security and boost confidence in cryptocurrency transactions, as mentioned by the chief operating officer:
“This includes MEV protection, which is enabled by default across major blockchains such as Ethereum, BNB Chain, and Solana, helping users avoid risks such as front-running and sandwich attacks.”
“We have also implemented smart authorization detection through our GetShield engine, which actively monitors smart contracts, decentralized applications, and URLs to identify malicious activities before users finalize any actions,” he shared.
The wallet’s operations are underpinned by a $300 million fund dedicated to user protection, serving as an extra layer of security against potential asset losses due to platform-related issues.
Regional concerns regarding crypto payment security.
Security issues have been a persistent trouble for the industry, particularly with the rise of address poisoning scams, where victims are misled into sending their digital assets to fraudulent addresses controlled by scammers.
In March alone, victims fell prey to these scams, transferring over $1.2 million in funds to con artists within the first three weeks.
While Generation X users primarily cite security as their primary concern, Generation Z users lean more towards usability and cost-effectiveness, according to industry insights.
Africa and Southeast Asia lead in cryptocurrency payment adoption
The report indicated that 52% of respondents from Africa and 51% from Southeast Asia expressed interest in cryptocurrency payments, driven largely by high remittance costs and limited access to banking services.
Interest in cryptocurrency payments by region.
To assist regions with limited banking options, the wallet service offers an easy onboarding process through non-custodial wallets that do not require users to have a traditional bank account. The COO added:
“With support for over 130 blockchains and stablecoins, users can effortlessly send and receive value globally, using assets that retain their purchasing power.”
“Local fiat on-ramps and multichain compatibility ensure that users can engage with cryptocurrency without needing extensive technical knowledge or centralized systems,” he continued.
In Latin America, the high fees associated with traditional wire transfers are a significant factor motivating users to switch to cryptocurrency payments.
These remittance fees averaged 7.34% during 2024 when involving bank account transfers, according to data from industry analytics.
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