Traditional financial products are losing ground compared to cryptocurrencies, especially in developing countries, with prepaid, which is of great interest.
As the second Ding Global Prepaid Index shows, more and more customers are using digital asset-related services, which are much more attractive than traditional financial products such as personal loans. The data also shows a high adoption rate of digital currencies, reaching 25% in the developing countries surveyed.
Traditional financial products have plummeted compared to cryptocurrencies
Commissioned by Ding, this 2-year study examines the responses of at least 6,250 participants from Saudi Arabia, the United Arab Emirates, Nigeria, Indonesia, Germany, India, Mexico, Brazil, and the Philippines regarding their participation in the prepaid market and their overall behavior towards economy.
Among the countries surveyed, the highest cryptocurrency adoption rates were recorded in Nigeria, with 25% of users confirming that they own bitcoin or other crypto assets. This is followed by the Philippines and Indonesia, where 19% and 18% of respondents confirmed the presence of cryptocurrency, respectively. Conversely, cryptocurrency adoption is “very” low in Germany and Mexico, at 8% for each, followed by 10% for Saudi Arabia.
Especially in developing countries with prepaid, which is of great interest.
This research also shows a strong preference for cryptocurrencies over traditional financial products. Cryptocurrencies ranked sixth out of thirteen options, with traditional bank accounts, savings accounts, and credit cards being the most popular products. However, cryptocurrencies are mentioned more often than personal loans, other stocks and home loans.
The report also reveals some pretty interesting information about the prepaid market, showing that more than three-quarters of users have already dealt with prepaid products or services. And far from the last option for those who are not eligible for a phone subscription or credit card, the survey shows that people often choose to pay in advance because it is easier to control in terms of budget and spending. Only 11% of respondents say they use prepaid because they have no other choice.
Asked by The Fintech Times, Rupert Shaw, Chief Commercial Officer of Ding, said: “2021 has been the year that cryptocurrencies, DeFi and NFTs are becoming more and more popular in conversations. Our Global Prepaid Index has shown that clients need flexibility and an alternative to what exists today, and this applies to both investment options and other prepaid products – these clients are frugal, they want to control their budget and there is a real trend towards this option. compared to traditional financial services.”
“The peer-to-peer nature of this investment category is attractive, and it’s also an opportunity for them to get financial support where they may have felt excluded in the past.”2021 has been an important year for cryptocurrencies with price peaks and very frequent news, especially regarding NFTs.
However, security concerns continue to haunt the industry. Another interesting finding from the GPI report is the high correlation between fear of cybercrime and cryptocurrency adoption. Respondents from Nigeria, the Philippines, and Indonesia were more concerned about their financial data being stolen, identity theft, or hacking than other countries.
Respondents from these countries are also more likely to report fear of data collection by their government or large companies. Conversely, Indian customers are the least worried about online financial crime and data fraud. The Germans are the least worried about data collection.