The news: Novel payment methods need to be effective, easy, and secure before consumers will even consider using them. 

That’s a lesson crypto payments are still learning, Senior Analyst Grace Broadbent said during a FinovateFall panel.

How we got here: Consumers’ chief concerns revolve around three questions, per Broadbent: “Is the payment simple, is it secure, and does it get there when it needs to get there?” 

While financial institutions may be debating when and how to implement crypto solutions, end consumers likely don’t care if stablecoins facilitate their payments. These rails can stay comfortably invisible to the consumer as long as they achieve those key objectives.

Broadbent drew the comparison between consumers’ adoption of digital wallets and crypto solutions. 

Analysts once wondered what could trigger a sea change in consumer payment behavior to digital wallets—and then the pandemic hit. Contactless payments surged into popularity as consumers tried to avoid physical touchpoints at the POS. 

Crypto is waiting for its own “pandemic moment” that triggers mass adoption: The number of US crypto payment users is up 41.6% this year but still only accounts for a meager 4% of the US population, per our forecast.

Implications for payment providers: While crypto payments have not had a catalyzing moment like digital wallets, payment providers can still explore crypto solutions for use cases now.

• Crypto-backed remittances can help reduce costs and increase speed of settlement for cross-border payments. Players like SoFi, Western Union, and Zelle have already debuted solutions. 
• And stablecoin-backed payouts for creators and gig workers can help speed up payments: PayPal powers stablecoin payouts for YouTubers, and Visa Direct gives businesses stablecoin solutions for contractors.

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