Security concerns slow crypto payment adoption worldwide

Security concerns remain the biggest obstacle to the mainstream adoption of cryptocurrency payments, as hacks and phishing scams continue to damage the industry’s legitimacy.

More than 37% of investors identified security risks as the main barrier to using cryptocurrency for payments, according to a survey of 4,599 users conducted by Bitget Wallet as part of its latest Onchain Report shared with Cointelegraph.

Still, 46% of users said they preferred crypto payments over fiat for their speed and efficiency.

Bitget Wallet has implemented multi-layered protection mechanisms to make security a “top priority” and inspire more confidence in crypto payments, according to Alvin Kan, chief operating officer of Bitget Wallet:

“This includes MEV protection, which is now enabled by default across major chains like Ethereum, BNB Chain, and Solana, helping users avoid common risks like front-running and sandwich attacks. “

“We also introduced smart authorization detection via our GetShield engine, which actively scans smart contracts, DApps, and URLs to flag malicious behavior before users sign anything,” he told Cointelegraph.

Bitget Wallet’s operations are backed by a $300 million user protection fund as an additional layer of assurance in case of an “asset loss due to platform-level issues.”

*Concerns over crypto payment security by region. Source: Bitget Wallet Onchain Report*

Security concerns have plagued the industry, especially since the emergence of a new type of phishing attack known as address poisoning or wallet poisoning scams, which involve tricking victims into sending their digital assets to fraudulent addresses belonging to scammers.

Victims of address poisoning scams were tricked into willingly sending over $1.2 million worth of funds to scammers in the first three weeks of March.

While Gen X users cite security as their top concern, Gen Z users prioritize usability and cost-efficiency, Kan said.

Africa and Southeast Asia lead in crypto payment adoption

Bitget Wallet’s report found that 52% of African respondents and 51% of Southeast Asian respondents showed interest in crypto payments, driven by high remittance costs and limited banking access.

*Interest in crypto payments by region. Source: Bitget Wallet Onchain Report*

To help the world’s unbanked regions, Bitget Wallet offers simplified onboarding with non-custodial wallets that don’t require a traditional bank account, Kan said, adding:

“With support for over 130 blockchains and stablecoins, users can easily send and receive value globally, using assets that maintain purchasing power.”

“Local fiat on-ramps and multichain support ensure that users can tap into crypto without needing deep technical knowledge or centralized platforms,” he added.

In Latin America, high transaction costs associated with traditional wire transfers are the main factor driving users to adopt crypto payments, Kan said.

Such remittance fees averaged 7.34% during 2024 if they involved bank account transfers, according to Statista.