The hardware and private key subsectors are driving the expansion of BTC payments as demand from banks and emerging economies continues to grow.
The payment market will reach $3.7 billion by 2031, posting a 16.3% compound annual growth rate (CAGR) from 2022 to 2031, with private keys and hardware driving the sector’s expansion, predicts Allied Market Research in a report published on October 24 became
According to the document, the operational demand for efficiency and transparency in payment systems, together with the growth of data security services and an increase in demand for transfers in emerging economies, are among the main factors that will support the growth of the sector in the coming years. Year. The report also said:
“Additionally, rising demand for Bitcoin among banks and financial institutions and untapped potential in emerging economies is expected to provide lucrative opportunities for Bitcoin payment market expansion over the forecast period.”
In 2021, the private key segment accounted for three quarters of the total payment market share for Bitcoin, according to the report, and the segment is expected to maintain its dominant position throughout the forecast period, with almost 20.3% CAGR until 2031, followed by the hardware sector that growing 19.8% in the same period.
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E-commerce transactions are likely to remain relevant in the sector, growing almost 20.2% by 2031, according to the report. The Asia-Pacific region is predicted to continue to dominate the market until 2031, although the fastest growth is expected to come from North America, with a CAGR of 18.6% over the period.
Referring to the barriers and challenges in the space, the report acknowledges that high implementation costs and low global awareness of bitcoin use may hinder the progress of the sector. He pointed out:
“Distributed ledger technology has spread from cryptocurrency to a host of applications in the financial and government industries. However, many people in financial and government industries in developing countries such as India, Africa and Australia are less aware of the transactions with Bitcoin payment, which hinders the growth of the Bitcoin payment market worldwide.
As Cointelegraph reported, the cryptocurrency bear market has affected the way people pay with cryptocurrencies, but Bitcoin remains an important payment tool despite its enormous volatility, which accounts for more than 50% of all sales in crypto . the platform of the payment service provider BitPay. The data revealed that BTC payment sales volume on BitPay rose to 87% in 2021 before declining in the 2022 bear market.