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The crypto industry is rapidly evolving, offering users more and more advanced asset management options every day. Changes are affecting all aspects of the financial ecosystem, from crypto wallets and decentralised finance to gaming and international payments.
Let's review the key trends that are shaping the patterns of cryptocurrency payments in 2023 as well as how they will impact the global financial system in the coming years.
1. Shift from custodial to non-custodial crypto wallets.
More and more users are starting to make a shift from custodial crypto wallets managed by external exchanges to non-custodial ones. While the former certainly provide secure asset storage, the latter allow users to have full control over their cryptocurrency funds.
In practice, both options can be used to process cryptocurrency transactions, providing investors with considerable diversity in their choice of instruments.
2. Mass adoption of DeFi.
The decentralised finance (DeFi) sector is demonstrating strong performance within the blockchain industry. Investors are actively utilising DeFi opportunities for lending and borrowing, liquidity pools and yield farming. In the future, cryptocurrency payments can be expected to become even more popular among a wider audience, fuelling mass adoption of DeFi.
3. Diversification.
In 2023, investors are looking to diversify their assets extensively, focusing more on cautious investments in different tokenised assets during pre-sales. This new trend in digital payments will open up crypto-enthusiasts to more investment opportunities.
4. Wider adoption of bitcoin.
Bitcoin is already recognised as legal tender in a number of countries and is actively used for payments. Other states are introducing specialised blockchain technology programmes in which BTC is taking centre stage. It is predicted that in the near future even more services and companies will start accepting BTC as a means of payment.
5. Crypto transactions in the gaming industry.
Play-to-Earn (P2E) games have become widespread in the blockchain space. During gameplay, players can receive NFTs or in-game currencies, which are then used for online transactions via DeFi. Due to the influence of P2E gaming, crypto-payments are expected to become even more widespread in the future.
6. Development of cross-border payment infrastructure.
As the global economy recovers, more and more companies will start to make large cross-border payments in cryptocurrency. Current and future payment gateways will be able to offer corporations solutions with minimal costs and fees, which will be a key factor in the successful adoption of crypto payments.
7. Wallets are displacing exchanges.
Cryptocurrency exchanges are centralised platforms managed by a third party, which affects their overall performance and security. Unlike exchanges, cryptocurrency wallets can be connected and disconnected by the user at any convenient moment.
Thus, users seeking maximum security and privacy will increasingly move to cryptocurrency wallets.
8. Mass adoption of stablecoins.
With the increasing volatility of cryptocurrencies, those users looking to take advantage of DeFi and digital assets while avoiding high risks will start to actively use stablecoins. Stablecoins tied to the value of fiat currencies, including the U.S. dollar, provide stability, making them attractive to a wide audience.
9. Introduction of loyalty programmes.
Many companies and e-commerce platforms will begin to introduce loyalty programmes related to cryptocurrencies to motivate customers to make repeat purchases. They may offer exclusive rewards to those who opt for crypto payments, for example, in the form of reduced commissions or other benefits.
10. Popularisation of crypto cashback.
With the integration of cryptocurrencies into mass markets, companies will start offering crypto cashback programmes. In this way, users will be able to return a certain percentage of purchases paid for with cryptocurrency, which will encourage further use of digital assets. The trend aims to make cryptocurrency payments as common as traditional payment methods.
The crypto sphere is undergoing dynamic changes and these trends are shaping new opportunities for investors, developers and users. Those who can adapt to these transformations will maximise the benefits even now.