What is driving consumer resistance to crypto-payment? A multianalytical investigation
Despite the extensive interest in cryptocurrencies over the past years, their application as a means of payment in e-commerce and retail purchases continues to be much slower than anticipated. This study looks into why many consumers are still reluctant to use cryptocurrencies like Bitcoin or Ethereum to make everyday purchases, even though interest in these digital assets has grown rapidly in recent years. While cryptocurrencies are often seen as exciting financial tools, their use as a regular payment method in online and retail shopping remains low. To better understand this resistance, the study explores how people react to the risks and uncertainties linked with using cryptocurrencies for payments.
The research uses two approaches: a survey and an experiment, to understand what shapes people’s attitudes. The findings show that two main problems—price volatility and a lack of clear rules or protections—strongly influence people’s views and actions. When cryptocurrency prices swing wildly or when people don’t trust the systems in place to protect them, they tend to view using crypto as too risky or not worthwhile. This makes them prefer sticking with traditional money.
People who already own cryptocurrency are somewhat more open to using it for payments, but most still hold crypto for reasons other than making purchases—mainly for investing, earning profits, or avoiding the fear of missing out. Because of this, even owners hesitate to spend their cryptocurrency. This points to a “two-step” rejection: first, people who don’t own crypto are hesitant to use it at all; second, even owners tend to avoid using it for payments, since their main interest lies elsewhere.
The study also shows that people see using crypto as less valuable than other payment options. This sense of low value plays a bigger role in resistance than concerns about how easy it is to use or how risky it might be. Interestingly, even though there are real concerns about cybersecurity and fraud, those issues don’t weigh as heavily in people’s decisions—especially for younger users who are comfortable with technology and digital payments.
Another key finding is the role of rules and protections. When people feel that cryptocurrencies are not well-regulated or backed by strong legal and consumer protections, they are much less willing to use them for payments—regardless of how volatile the prices are. But when people do trust the system, then price swings start to matter more in their decisions.
Overall, the study provides important insights into how and why consumers resist using crypto for payments. It shows that creating trust through better regulation, clearer policies, and strong consumer protections is key to changing attitudes. It also suggests that more stable forms of cryptocurrency, such as stablecoins, might help reduce resistance and make crypto payments more acceptable to the average user.
In short, unless cryptocurrencies become more stable and better supported by strong systems and safeguards, most people will continue to see them as too risky for everyday use. Making crypto a normal way to pay will require solving both trust and value concerns.
Mohamad Sadegh Sangari and Atefeh Mashatan (2024). What is driving consumer resistance to crypto-payment? A multianalytical investigation (external link, opens in new window) . Psychology & Marketing. DOI: 10.1002/mar.21935