FRESNOFORECLOSURE

Cryptocurrencies are carving a notable niche in Southeast Asia’s burgeoning digital economy, driven by the allure of speed and cost savings. Yet, according to a new on-chain report by Bitget Wallet, significant hurdles related to security and merchant acceptance persist.

The “PayFi Unlocked” report, based on a survey of 4,599 global users, including a substantial cohort from Southeast Asia, delves into the motivations and anxieties shaping the region’s crypto payment landscape.

The findings reveal a compelling narrative of adoption propelled by pragmatic needs.

For a remarkable 51 per cent of respondents in Southeast Asia, the speed and efficiency of transactions are the paramount reasons for embracing crypto payments. This resonates strongly in a region where remittances, e-commerce, and freelance work are significant economic drivers, demanding swift and reliable financial transfers.

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Coupled with this, 47 per cent cite lower transaction fees compared to traditional payment systems as a key incentive, a particularly attractive proposition in a mobile-first economy sensitive to affordability. The ability of crypto to facilitate global payment access without regional restrictions is also highly valued, with 45 per cent highlighting its importance in an increasingly interconnected economic environment.

However, this enthusiasm is tempered by significant concerns. Security risks, including hacks, scams, and fraud, loom large, cited by 43 per cent of Southeast Asian users as a major barrier. This apprehension is understandable given the rapid proliferation of digital assets in the region, often outpacing user education and security awareness, making many first-time adopters vulnerable.

Price volatility presents another substantial challenge, worrying 40 per cent of respondents who view the unpredictable fluctuations as a hindrance to crypto’s reliability for everyday transactions.

Furthermore, the report underscores the critical issue of limited merchant acceptance, a factor deterring 39 per cent of users in Southeast Asia. While the region boasts a thriving digital commerce scene, businesses’ integration of crypto payment solutions remains nascent, forcing users to revert to fiat currencies often, incurring potential costs and inconveniences.

The complexity of using crypto wallets and addresses also creates friction, although this is a less dominant concern in the relatively tech-savvy Southeast Asian market compared to other regions.

Interestingly, while irreversible transactions are a global concern, Southeast Asia (34 per cent) shows a slightly lower level of worry compared to regions like Africa (41 per cent). This could potentially indicate a higher degree of digital literacy or a greater willingness to navigate the risks associated with blockchain’s immutability.

Key data points for Southeast Asia

Top drivers for crypto payment adoption:

• Speed and efficiency of transactions: 51 per cent
• Lower transaction fees: 47 per cent
• Global payment access without restrictions: 45 per cent

Top barriers to crypto payment adoption:

• Security risks (hacks, fraud): 43 per cent
• Price volatility: 40 per cent
• Limited merchant acceptance: 39 per cent

The Bitget Wallet Onchain Report highlights the nuanced landscape of crypto payment adoption in Southeast Asia. While the practical advantages of speed and lower costs are strong catalysts, building trust through enhanced security measures, greater price stability (potentially via stablecoins), and wider merchant integration are crucial steps for crypto to evolve from an alternative to a mainstream payment method in this dynamic region.

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The findings serve as a valuable compass for industry stakeholders aiming to refine user experiences and foster a more inclusive and efficient digital payment ecosystem in Southeast Asia and beyond.

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