Crypto Payments Find Market Fit in Developing Nations

Crypto is a global phenomenon but the nature of its adoption remains highly localized. While nations the world over have shown sustained interest in digital assets, different regions access them for different purposes. In the west, crypto is a vehicle for investment and speculation: just another financial market, in other words, albeit one that is much more accessible than TradFi.

But in developing nations across Africa, South America, and Asia, crypto also provides a more tangible use case: it’s a payment solution that is often more stable and reliable than local fiat. To citizens in these countries, crypto is woven into the fabric of daily life. From payments to savings, digital currency is being used by millions, with Africa and the Asia-Pacific region leading the charge.

The Rise of Crypto Payments

In most developed nations, particularly in western countries, crypto payments have been slow to take off. Consumers already have bank accounts, debit cards, contactless payments, and relatively stable national currencies, rendering crypto payments a luxury rather than a necessity. But in Africa, where mobile payments power the bulk of the continent’s economy, and where there is a high proportion of unbanked individuals, crypto has found its niche.

Despite limited access to traditional banking, Africa has a high rate of mobile phone usage. Mobile wallets and crypto platforms have leveraged this to offer accessible financial services to a wider population. Africa has some of the highest remittance fees in the world and crypto offers a cheaper and faster alternative for sending money across borders, making it an attractive option. It also eliminates the need for currency conversions or navigating complex banking systems.

Due to regulatory restrictions and limited access to centralized exchanges, peer-to-peer (P2P) trading platforms have also become popular in Africa. These allow users to buy and sell crypto directly with one another, often using local currencies and payment methods. As a result, companies such as Paxful have seen robust demand for P2P crypto services across the continent. In Asia-Pacific, meanwhile, crypto payments are also soaring.

Asia-Pacific Does Digital

Like Africa, the Asia-Pacific region has a high degree of mobile penetration, even if the tech is typically higher end. The APAC region has a high rate of smartphone penetration, with countries like China, India, and Indonesia leading in mobile phone usage. This has normalized mobile-based instant payment solutions, driven by the likes of WeChat Pay and Alipay.

Instant payments are a part of life across the APAC region, both for the banked and the unbanked – of which Asia-Pacific also has a high proportion. Crypto has effortlessly slotted into this financial landscape, becoming yet another digital payment option. Dedicated blockchain payment networks such as Fuse have enjoyed significant success in this domain. Its scalable web3 network is routinely used by merchants across Asia-Pacific as well as in the African continent.

The APAC region's role as a global trade hub has driven demand for efficient cross-border payment solutions. Crypto transactions offer quicker and cheaper alternatives to traditional banking channels, making them attractive for businesses and individuals involved in international trade and remittances. For these reasons, crypto has found market fit across Africa and Asia-Pacific as an alternative payment solution.