AI digital payments power ‘crypto’ surge; market to reach $367B

A joint poll compiled by Reown and public opinion analytics firm YouGov has highlighted a spike in global digital currency adoption rates, highlighting key drivers behind the surge.

The survey quizzed 1,000 respondents in the U.K. and U.S. on their digital asset preferences to glean key insights. According to the survey, 34% of respondents confirm interactions with digital assets, with most participants revealing plans to adopt the asset class.

Over 50% of respondents rely on digital assets for trading and investment purposes, with Bitcoin and leading altcoins forming part of their investment portfolios. 27% of surveyed respondents confirm digital asset utility for payments, a rising trend driven by key factors.

The joint report noted that stablecoins are driving on-chain payments among digital asset users. While once considered a niche vertical, stablecoins have exploded in popularity in recent months, reaching a peak after the GENIUS Act signing by U.S. President Donald Trump.

Tether’s USDT leads the pack with a market capitalization of $163 billion, while Circle’s (NASDAQ: CRCL) USDC ranks second at $64 billion. The report notes that stablecoin ownership has surpassed Solana adoption and is only 10% away from drawing level with Ethereum.

The perks of hedging against digital asset volatile swings and the ability for cross-border transactions are fuelling a surge in adoption metrics. Regarding age distribution, 51% of stablecoin users are between 18 and 34, while users older than 45 are recording the slowest adoption pace of all age demographics.

Integrating artificial intelligence (AI) into digital payments is considered a game-changer in the payment landscape. Reown CEO Jess Houlgrave revealed that several digital asset service providers are turning to AI for fraud detection, customer support, and personalization.

Houlgrave disclosed that AI will improve internal processes like onboarding and auditing. However, the Reown CEO added that digital assets and AI can thrive in the same ecosystem in a mutually beneficial relationship for both verticals.

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Digital payments market to reach $367 billion by 2032

In other news, a new report has tipped the global digital payments market to clinch a market capitalization of nearly $400 billion by 2032, driven by a combination of key factors.

According to a report compiled by Coherent Market Insights, the digital payment sector is currently valued at $91 billion by 2025. The report anticipates a growth to $367 billion in 2032, representing a compound annual growth rate (CAGR) of 21.5% over seven years.

Several factors are influencing the projected growth of global digital payments in the coming years. Analysts say the biggest mover for the industry is a shift in consumer behavior, with new data indicating a broad preference for digital payments across retail, e-commerce, and hospitality verticals.

While consumers are increasingly leaning on digital payments solutions like credit cards, QR codes, and digital wallets, the report highlights the rise of superapps. Several mobile applications offer investors a suite of financial services, including payments, loans, and insurance, attracting new users to the platforms.

Amid rapid innovation in the space, a streak of government-backed policies will push the industry to a valuation of $367 billion in the coming years. For starters, central bank digital currencies (CBDCs) are gaining significant traction in recent months, with several countries across multiple regions exploring the offering.

Government-backed real-time payment rails like UPI and FedNow are playing a key role in advancing the digital payments landscape. Meanwhile, cross-border payment rails based on blockchain are onboarding new users to digital payments.

The report predicted that North America and Europe would lead global digital payment volumes while pointing to the high adoption levels in Latin America and Southeast Asia. Africa and the Middle East are the lowest rung, but the report cited the perks of financial inclusion as a major positive for developing regions.

Across jurisdictions, large enterprises will lead the payment volumes over small and medium-scale enterprises (SMEs). The leading players driving growth include Apple Pay (NASDAQ: APPL), PayPal (NASDAQ: PYPL), Stripe, Worldline, and Visa (NASDAQ: V), with analysts still leaving room for new disruptors.

A raft of glowing figures

While the report peers into the long-term, short-term estimates paint a positive future for digital payments. U.S. digital payments are touted to soar past the $3.8 trillion mark before the end of 2025, while global digital payment revenue is tipped to surpass $3 trillion by 2028.

Several studies predict that Gen Alpha will power the global adoption of digital payments while Gen Z and Millennials play second. Already, several jurisdictions are recording dwindling cash usage with cashless payments growing by double-digit percentages in developing economies.

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