A recent survey by Pundi X, a cryptocurrency project focused on enabling AI-powered Web3 payments, found a strong willingness among people to adopt crypto payments. Still, there is uncertainty regarding AI’s integration into traditional payment systems.
Interestingly, nearly half of the 600 respondents across Argentina, Australia, India, Mexico, Singapore, and the USA believe AI can drive broader cryptocurrency adoption and attract newer users by simplifying and securing transactions.
To gauge the awareness and willingness to use crypto for payment, respondents were surveyed on their familiarity with cryptocurrencies as well as their current usage and future adoption intentions.
Given that it’s been a decade and a half since Bitcoin’s existence, there’s a strong familiarity with crypto at 70%, with Singapore (78%) in the lead, followed by India (77%), then US and Australia (72%), and then Mexico (63%) and finally Argentina (56%).
Well above half of respondents are also aware of crypto payments, with one-third having used such methods, reflecting a promising future for their adoption.
Now, when it comes to AI’s familiarity, 89% of respondents have an idea of the technology, and 46.31% are aware of its usage in payment systems. It bodes well for AI’s future integration into the TradFi world, which nearly 45% of respondents support, although nearly 34% are unsure.
The more exciting revelation of the survey has been the “predominantly positive perception of AI’s role in enhancing crypto payments,” with over 54% believing the tech to be beneficial, 21.83% sharing a willingness to pay an additional fee for AI in crypto payments, 30.33% preferring a subscription model, and the rest remaining “unsure.”
Now, the concerns regarding this integration revolve around a lack of understanding or expertise, as per 29.65% of respondents, indicating a need for education and support. Data privacy and security follow closely behind at 25.5%, indicating that users are ready to engage with AI solutions that prioritize their security.
While one may think regulatory compliance will be a big limiting factor, only 14.7% of those surveyed believe it to be concerning, the same percentage as those having “no concerns,” which suggests that most are actively thinking about the challenges involved in adopting AI technologies.
“While the road forward is filled with complexities, it is also rich with possibilities,” said Zac Cheah, co-founder and CEO of Pundi X Labs. “By harnessing the power of AI, together we can develop smarter, safer, and more seamless experiences that empower users and build trust within this evolving financial ecosystem.”
AI’s Role in Revolutionizing Crypto Transactions
The survey was part of Pundi X’s latest report titled “The State of Artificial Intelligence in Crypto Payments,” which takes a deep dive into the AI-crypto convergence, offering a massive opportunity for both the crypto and financial industry.
When it comes to crypto, its journey to mainstream adoption has been a long one, and it continues to evolve. Today, it has become a viable alternative to traditional fiat currencies, thanks to offering the benefits of being faster, cheaper, and more secure.
Then there’s the decentralized nature of blockchain technology underpinning cryptos, which adds to their appeal and utility in global payments.
According to the Pundi X report, there are other key drivers propelling crypto’s growth, including increased merchant, user, and government acceptance. In addition to the need for more accessible remittance options, the rising adoption of fiat-backed stablecoins and financial inclusivity offered by crypto are the most significant drivers of this growth.
So, as crypto assets continue to mature, their role in the global financial system is likely to expand as well, noted the report, adding, AI can actually help accelerate this adoption.
Unlike crypto, which took time for people to get comfortable with, AI was able to capture mainstream attention and adoption pretty fast. For instance, ChatGPT hit 100 million monthly users within just two months, setting the record for the fastest-growing user base.
It was thanks to significant advancements in machine learning that allowed the processing of voluminous data with unprecedented speed and accuracy, which has helped AI’s explosive adoption among not just users but also businesses across industries. This includes blockchain and finance, where AI showcases the potential to enhance efficiency, transparency, and security.
For cryptocurrencies, in particular, AI can help with real-time transaction monitoring, accurate smart contract execution, predictive analysis, risk management, and enhancing customer satisfaction without needing human involvement.
That’s not to say there aren’t challenges with AI-crypto integration. Besides the regulatory and compliance complexities, AI-driven crypto payment systems introduce new security risks such as AI-targeted attacks, data manipulation, and vulnerabilities in AI algorithms.
Scalability and interoperability are already major issues for the fragmented, decentralized crypto ecosystem. Add AI to the mix, and these problems become even more complex and severe.
Integrating AI algorithms seamlessly across blockchain platforms with different consensus mechanisms and smart contract capabilities, the Pundi X report notes, requires standardized protocols, interoperable frameworks, and scalable infrastructure.
So, the integration of AI in crypto payments represents a significant advancement in the fintech sector, concludes the report, and together, AI and crypto can play a transformative role in digital payment ecosystems, driving innovation and paving the way for a more inclusive financial future.
