According to Coinbase, a prominent cryptocurrency exchange in the United States, utilizing crypto technology instead of relying on credit cards for payments could have allowed Americans to retain at least $74 million in 2022. In its most recent State of Crypto report, Coinbase exposes how traditional financial institutions contribute to elevated transaction fees within a system plagued by delays.
Coinbase observes that employing cryptocurrency is more cost-effective than utilizing credit cards.
Coinbase, a prominent U.S.-based cryptocurrency exchange, underscores the potential savings associated with adopting a cryptocurrency payment system as opposed to traditional credit cards. In its latest State of Crypto report, Coinbase suggests that Americans could have conserved a minimum of $74 billion in credit card fees by opting for an alternative, crypto-based payment method in 2022.
This equates to individual households saving $600 throughout the year solely by utilizing cryptocurrency for payments. The impact of these fees is not limited to end-users; merchants also bear the burden, having paid approximately $126 billion in fees for processing credit card transactions, while the cost of processing payments through crypto could be minimal.
The report elaborates that crypto payments can be up to 5,000 times more economical than traditional methods, such as wire transfers, particularly when considering the best-case scenario and utilizing a proof-of-stake-based network like Solana or Polygon.
Furthermore, the report asserts that crypto payments exhibit faster processing times compared to traditional methods. The processing speed is at least 24 times and, at most, 432,000 times faster than legacy methods, contingent on the cryptocurrency employed for the transaction. The report also delves into the use case of crypto for payroll payments, allowing for near-instant payments compared to delivery times of one to six business days with conventional methods.
As awareness grows regarding the advantages offered by alternative blockchain systems over slower, costlier legacy alternatives dependent on financial institutions, the report indicates that 71% of consumers desire cheaper transactions, 70% prioritize faster transactions, and 63% seek improved access to these payment options.