A new study from Software Advice that focuses on 346 U.S. consumers who made monthly purchases with cryptocurrencies over the course of a year provides retailers with a window into the habits, preferences, and demographics of regular crypto spenders.
While over half of respondents plan to spend more with crypto over the next year, the study also suggests that it is too soon for most small and mid-sized businesses to adopt crypto payments.
The study found that 88% of respondents were intentionally seeking retailers accepting crypto, and 92% said they had at least once chosen a different retailer because their preferred choice did not accept crypto payments.
In the 12-month period preceding May 2022, when the study was conducted, 55% of respondents had increased their crypto spend on physical products and services, and 45% spent more on virtual products and services, including those sold in the metaverse.
However, few retailers currently accept crypto payments, which is why almost two-thirds of crypto spenders said they don’t use crypto more often, while 29% don’t use crypto more often because of its fluctuating value.
Still, respondents said they choose crypto over cash for ease of use (67%), low transaction fees (53%), privacy (51%) and accessibility (38%).
The study also says that most crypto spenders are younger, educated men, with 68% identifying as men and 85% between the ages of 18 and 45. Two-thirds hold a bachelor’s degree, and almost a fifth have earned a master’s degree.
Despite the ongoing volatility of crypto, 91% of respondents said they believe crypto payments for goods and services will be more common in the future. Almost half of investors initially bought crypto to make quick money while 26% were trying to save for retirement.
Forty percent of respondents said they first acquired crypto because it was trending on social media, and 31% said they bought crypto because they were looking for a sense of community.
For small businesses looking to invite crypto payments for their products, Software Advice suggests they use the cryptocurrencies –– Bitcoin Ethereum, USD Coin etc. –– and payment gateways ––BitPay, Coinbase Commerce, PayPal etc. –– that consumers prefer.
If choosing to accept crypto, businesses should also market this to the public. “If you accept crypto, crypto spenders want to find you, so make yourself visible where the community congregates,” according to the study.
The study also suggests that revenue expectations from crypto should be low, as not many current shoppers use this budding payment method.