Security concerns slow crypto payment adoption worldwide — Survey

A comprehensive global survey released yesterday reveals that security concerns continue to be the primary obstacle preventing wider adoption of cryptocurrency payments, despite growing interest from both consumers and merchants worldwide.

Survey Findings

The "Global Cryptocurrency Payments Landscape 2025" report, conducted by financial research firm Meridian Insights in collaboration with the Payment Systems Association, surveyed over 9,800 consumers and 3,200 merchants across 32 countries. The findings highlight a paradoxical situation where interest in crypto payments is reaching all-time highs while actual implementation lags significantly behind.

Key statistics from the report include:

• 64% of consumers expressed interest in using cryptocurrencies for payments, up from 47% in 2023
• Only 17% of consumers reported making a cryptocurrency payment in the past 12 months
• 72% of consumers cited security concerns as their primary reason for hesitation
• 58% of merchants reported considering accepting cryptocurrency payments
• Only 14% of merchants currently accept any form of cryptocurrency
• 81% of merchants identified security and regulatory concerns as their main barrier to adoption

"What we're seeing is a significant gap between interest and action," explained Dr. Sarah Nguyen, lead researcher at Meridian Insights. "Both consumers and merchants are intrigued by the potential benefits of cryptocurrency payments, but security concerns create a powerful psychological barrier that's proving difficult to overcome."

Specific Security Concerns

The survey delved deeper into the specific security concerns holding back adoption. For consumers, the top issues identified were:

1. Irreversibility of transactions (68%) - The inability to reverse fraudulent or mistaken transactions
2. Wallet security (63%) - Concerns about private key management and potential theft
3. Volatility exposure (59%) - Risk of value fluctuations during the transaction process
4. Technical complexity (52%) - Difficulty understanding the technical aspects of secure transactions
5. Scams and fraud (49%) - Concerns about being targeted by sophisticated crypto-specific scams

Merchants expressed similar concerns but ranked them differently:

1. Regulatory compliance (76%) - Uncertainty about evolving regulations and compliance requirements
2. Chargeback equivalence (71%) - Lack of clear dispute resolution mechanisms comparable to traditional payments
3. Custody solutions (65%) - Concerns about secure storage of received cryptocurrency
4. Integration security (58%) - Worries about securely integrating crypto payment systems with existing infrastructure
5. Staff training (53%) - Challenges in properly training staff to handle cryptocurrency transactions securely

Regional Variations

The survey revealed significant regional variations in both interest and concerns:

• Asia-Pacific: Highest level of consumer adoption (26%) and merchant acceptance (22%), with Singapore, South Korea, and the Philippines leading the region
• Europe: Strong interest (59% of consumers) but modest adoption (14%), with regulatory clarity being a major differentiator between high-adoption countries like Switzerland and low-adoption countries like France
• North America: High awareness but cautious adoption (16% of consumers), with significant differences between Canada (19%) and the United States (14%)
• Latin America: Growing rapidly from a low base (15% adoption, up from 7% in 2023), driven primarily by countries with currency instability like Argentina and Venezuela
• Africa: Uneven but enthusiastic adoption (19% overall), with Nigeria, South Africa, and Kenya showing particularly strong growth
• Middle East: Most polarized region, with the UAE and Bahrain showing high adoption rates (24% and 21% respectively) while other countries remain below 5%

Regulatory Impact

The survey identified regulation as both a potential solution and a barrier to addressing security concerns. Countries with clearer regulatory frameworks for cryptocurrency payments generally showed higher adoption rates, even if those regulations were relatively strict.

"What merchants and consumers seem to value most is clarity, not necessarily leniency," noted Martin Sheffield, policy analyst at the Payment Systems Association. "In jurisdictions where the rules for cryptocurrency payments are well-defined, businesses feel more confident implementing solutions, even if compliance requirements are demanding."

Countries with the highest adoption rates typically featured:

1. Clear classification of different cryptocurrencies for payment purposes
2. Established licensing frameworks for payment processors
3. Defined consumer protection standards
4. Transparent tax treatment
5. Regulatory sandboxes allowing controlled innovation

Industry Response

The cryptocurrency and payment processing industries have been responding to these security concerns with various initiatives and technologies:

Stablecoins

The report notes a significant shift toward stablecoin usage for payments, with USDC, EURC, and other regulated stablecoins accounting for 74% of cryptocurrency payment volume, up from 58% in 2023.

"Stablecoins address the volatility concern directly," explained Elena Kowalski, Chief Strategy Officer at Global Payments Blockchain Consortium. "When combined with improved user interfaces, they remove two major barriers to adoption simultaneously."

Insurance Solutions

A growing number of cryptocurrency payment processors now offer insurance coverage for transactions, addressing concerns about irreversibility and fraud.

"We're seeing insurance become a standard feature rather than a premium add-on," said David Chen, fintech analyst at Morgan Stanley. "Payment processors recognize that offering transaction insurance significantly increases conversion rates, even if it adds a small percentage to processing fees."

Simplified Custody

New custody solutions designed specifically for merchants are gaining traction, allowing businesses to accept cryptocurrency without taking on the complexity of direct custody.

"The model is evolving toward one where merchants can get the benefits of cryptocurrency payments without needing to become cryptocurrency experts," noted James Wilson, CEO of payment infrastructure provider BlockPay. "Our data shows that custodial solutions with automatic settlement to fiat increase merchant adoption by over 300%."

Educational Gap

The survey identified a persistent educational gap that reinforces security concerns. Among consumers who expressed interest but hadn't made cryptocurrency payments:

• 61% could not correctly explain how a cryptocurrency transaction works
• 78% were unsure how to evaluate the security of a cryptocurrency wallet
• 83% were unaware of existing consumer protections in their jurisdiction

"There's a clear opportunity for both industry and regulators to improve educational resources," said Dr. Nguyen. "Many perceived security risks stem from misunderstandings rather than actual technical limitations of cryptocurrency payment systems."

Future Outlook

Despite the persistent security concerns, the report projects significant growth in cryptocurrency payment adoption over the next two years, forecasting:

• Consumer adoption increasing to 31% globally by 2027
• Merchant acceptance reaching 28% in the same timeframe
• Stablecoins continuing to dominate with over 80% of payment volume
• Central Bank Digital Currencies (CBDCs) emerging as a significant factor in countries where they've been introduced

"What we're witnessing is not so much a question of if cryptocurrency payments will achieve mainstream adoption, but when and how," concluded Sheffield. "The security concerns are real, but the industry is systematically addressing them, and regulators are increasingly providing the clarity that the market needs. The gap between interest and action is likely to narrow significantly in the coming years."

The report recommends that businesses interested in cryptocurrency payments focus on education, insurance options, and regulated payment processors as the most effective strategy for overcoming security concerns and tapping into growing consumer interest.