The global crypto payment app market cap is expected to hit $2.15 billion from 2022 to 2030 at a compound annual growth rate (CAGR) of 16.6%, according to a new research report by ResearchAndMarkets.com. The market growth is anticipated to be primarily driven by the burgeoning crypto market and its potential to replace fiat currencies.

Growing Use of Blockchain Technology to Drive Crypto Payment Apps Market Growth

The latest research report by ResearchAndMarkets.com shows that the global cryptocurrency payment market app size is projected to grow to $2.15 billion at a compound annual growth rate (CAGR) of 16.6% from 2022 to 2030. The global crypto payment market is currently worth roughly $626.4 million

The growing crypto and blockchain industry is expected to drive the market growth, as well as the “increased emphasis cryptocurrency payment app providers are putting on offering enhanced payment solutions.” ResearchandMarkets.com said in the press release. “The growing acceptance of cryptocurrency as an alternative to fiat currencies is anticipated to propel the market’s expansion during the forecast period.”

The number of payment providers that add bitcoin and other cryptocurrencies to traditional bank-based payment methods is on the rise, offering users more flexibility. Earlier this year, a crypto exchange Coincoinx launched a feature Coinpago that allows users in Venezuela to make payments without having to convert their crypto to fiat currencies. The service is expected to come to all stores and merchants in the country.

Similarly, fashion giant Gucci announced its partnership with BitPay, marking the first major brand to support ApeCoin payments. The integration allows Gucci’s customers in the U.S. to purchase products with APE.

Global Governments Also Implement Crypto Payments

The growth of the crypto payment app market received a major boost from the coronavirus pandemic, which forced the expansion of contactless payments and placed a strong emphasis on digitalization. Further, the growing need for higher payment flexibility is also anticipated to propel market growth.

Global governments are also making efforts to utilize the potential of blockchain technology in the payment system. Earlier this year, Iran made the first official import of $10 million using crypto and said it plans to expand the use of crypto and smart contracts for foreign trade in the future.

In September, Russia’s Ministry of Finance reached a landmark agreement with the country’s central bank to legislate and enable cross-border payments in crypto. The move came just a few months after Putin banned digital asset payments in Russia.

This article originally appeared on The Tokenist

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