Bitcoin Payments Ecosystem Market- By Type, By Application, By End-Use Industry, By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Bitcoin Payment Ecosystem Market Overview

Bitcoin Payments Ecosystem Market Size is forecast to reach $ 1830.8 Million by 2030, at a CAGR of 20.10% during forecast period 2024-2030. A typical bitcoin payment ecosystem constitutes of miners, traders, merchants, hoarders, and finally the consumers. The bitcoin payment ecosystem market growth is analyzed to grow significantly during the forecast period owing to the factors such as the rising market for exchange, non-compliance and increasing flexibility of commercial transactions in e-commerce industries. Increasing adoption of digital ledger to reduce the risk of cyber-attacks and financial fraud in the bitcoin payment ecosystem tend to boost the consumer interest in cryptocurrency which is analyzed to further drive the bitcoin payment ecosystem market growth during the forecast period. Moreover, the adoption of physical wallets for cryptocurrency payment is expected to further enhance the Bitcoin payment ecosystem market. The cryptocurrencies stored in these wallets are kept offline which reduces the risk of being hacked. These ongoing security developments and ease in payment is anticipated to propel the Bitcoin payment gateway market growth across the globe.

Report Coverage

The report: “Bitcoin Payment Ecosystem Industry Outlook – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Bitcoin Payment Ecosystem Market.

Key Takeaways

• Increased ability to perform smooth transactions and lack of third-party interruptions is analysed to significantly drive the Bitcoin Payment Ecosystem Market during the forecast period 2021-2026.
• Hardware segment is analysed to hold highest share in 2020 owing to the presence of thousands of hardware machines around the world operating the Bitcoin program or the Bitcoin application essentially. This tend to uplift its market growth across the globe during the forecast period.
• Trading marketplace application segment is analysed to hold the highest market share in the forecast period owing to the increasing demand of improved transactional security and fraud prevention payment gateway for trading applications.
• North America is analysed to hold the highest share in 2020 owing to early acceptance of bitcoin as a way of exchange for payment rather than currency purposes.
  
  

Global Bitcoin Payment Ecosystem Market Share, By Region, 2020 (%)

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Bitcoin Payment Ecosystem Market Segment Analysis - By Type

By Type, the Bitcoin Payment Ecosystem Market Report is segmented into Hardware, Software, Services and Others. Hardware segment is analysed to hold highest share 38.12% in 2020 owing to the presence of thousands of hardware machines around the world operating the Bitcoin program or the Bitcoin application essentially. Hardware segment consists of various equipment such as operating systems, power sources and many others which works together to operate and solve cryptography. This hardware consists of the thousands of miners for running the computers around the world. This hardware is specifically designed to validate block and hash by finding nonce. In November 2019, SecuX launched crypto POS payment ecosystem to complement hardware wallets. This enables users to pay using the app on either vending machines or through physical stores. These features and developments tend to enhance the hardware segment market growth in the Bitcoin payment ecosystem market during the forecast period.

Bitcoin Payment Ecosystem Market Segment Analysis - By Application

By Application, the Bitcoin Payment Ecosystem Market Report is segmented into Decentralize Identity, Decentralize Organization, Smart contracts, ATM’s, Analytics and Big data, Trading Marketplace, Consumer Wallets and Others. Trading Marketplace is analysed to hold the highest share with a CAGR of 21.11% during the forecast period 2021-2026. Increasing demand of transactional security, fraud prevention, regionalized network, low prices, customer payroll safety and fast foreign transactions is analysed to significantly drive the bitcoin payment gateway market in the trading marketplace applications. Bitcoin payment gateway offers transaction regardless of the amount or the destination which makes it most adopted payment gateway solution for trading marketplace applications. In February 2020, India-based Crypto Exchange CoinDCX collaborated with the OKEx Digital Asset Exchange which aimed to gain exposure for the OKEx to the Indian market. This development will open the doors to huge liquidity of bitcoin for trading application in one of the fastest growing economies in the world. Around the same period, CoinDCX would have exposure to OKEx's vast history in designing new goods to add more creative service services to the industry. These developments and features tend to create huge impact in the market growth of bitcoin payment ecosystem for trading marketplace applications.

Bitcoin Payment Ecosystem Market Segment Analysis - By Geography

North America is analysed to be the major region with a share of 34% in 2020 for the Bitcoin Payment Ecosystem Market owing to the early acceptance of bitcoin as a way of exchange for payment rather than currency purposes for wide range of applications. One of the major factors driving the bitcoin payment ecosystem market in North America region is government regulations to legalize the use of bitcoin for various transaction and trading applications. The acceptance by consumers and retailers of digital currencies is driving the market. In addition, the North American market is dominated by the success of bitcoin mining and the involvement of several main players. In December 2019, Wirex entered partnership with i2C on blockchain-based payments card in Asia-Pacific. The payment card enables users to transact in more than 150 digital and traditional currencies including Bitcoin, British pounds, Australian and U.S. dollars, Japanese Yen and other currencies. It also enables users to pay with debit, credit or digital currency and receive benefits. These partnerships and growing popularity are anticipated to boosts the Bitcoin payment ecosystem market growth.

Bitcoin Payment Ecosystem Market Drivers

Adoption of bitcoins by banking and financial institution is analysed to drive the bitcoin payment ecosystem market

Rising governmental regulations for the adoption of bitcoins by banking and financial institutions is analysed to bring significant growth in the bitcoin payment ecosystem market growth during the forecast period. For instance, opening the Singaporean market and neighbouring regions for digital currencies in a safe, trusted and compliant way. Singapore government decided to provide future opportunities for the bitcoin payment ecosystem by embracing cryptocurrencies to advance the maturity of their financial service to create safe economic growth. Moreover, according to Atlantic Council organization, China is racing ahead in the usage of digital yuan to the customers of People’s Bank of China from 2022. These government regulations are expected to bring significant growth in the demand of bitcoin payment ecosystem, further driving its market growth. Mainstream banking and other financial institutions that need to provide safe and compliant services to its customers, can start the next generation of monetary transactions with cryptocurrencies such as Bitcoin. To achieve this, new technology in identify management, compliance management, reporting and analytics must be developed. This new technology must ultimately protect the customer and the financial system represents an opportunity for Bitcoin to scale to the masses. These regulations are anticipated to bring major growth in the bitcoin payment ecosystem market during the forecast period.

Increasing operational transparency is propelling the Bitcoin Payment Ecosystem Market growth

Bitcoin payment transfers maintain transparency as all transaction-related details is registered on a centralized digital database known as the blockchain. All modifications in the blockchain can be presented freely by both stakeholders, thereby ensuring transparency in operations. In fact, these records are unchangeable, ensuring that they cannot be reversed or erased. This non - repudiation depends on proof-of - work to protect a given block by formidable computing resources and analysis, which, in effect, benefits auditors and enables bitcoin transactions through enhancing data protection. These features uplift the users trust and reduces the threat of piracy which tend to drive the bitcoin payment ecosystem market growth across the globe.

Bitcoin Payment Ecosystem Market Challenges

Volatile nature of bitcoin prices and regulatory discrepancies is analysed to hamper the Bitcoin Payment Ecosystem Market growth

One of the most important factors restraining the market growth of Bitcoin Payment Ecosystem is the volatile nature of bitcoin prices. Bitcoin prices are extremely volatile as it rises and falls at a rapid rate. Many speculators across the globe want profit from it, but on the other hand, genuine investors see it as too dangerous which hinders users to invest in Bitcoins. This factor tends to further hamper the bitcoin payment ecosystem market growth across the globe. Moreover, regulatory discrepancies are also one of the major restraining factors for the Bitcoin payment ecosystem market. Although financial regulators around the world are trying to develop universal principles, regulatory approval remains one of the most daunting challenges. Distributed ledger technology is currently in its infancy, posing a range of concerns at regional and international level for regulators and policymakers. The regulatory status remains uncertain due to issues regarding normalization and interoperability. Cryptocurrency laws and taxes differ from country to country and are often ambiguous or contentious. A lack of regulations, unfortunately, can lead to fraud and scams. These factors tend to bring major challenges in the Bitcoin payment ecosystem market growth during the forecast period.

Bitcoin Payment Ecosystem Market Landscape

Production Innovation, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Bitcoin Payment Ecosystem Market. In 2020, the market of Bitcoin Payment Gateway industry outlook has been fragmented by several companies. Bitcoin Payment Gateway top 10 companies include

1. Mt.Gox
2. Butterfly labs
3. Coinbase
4. Coinsetter
5. BitPay
6. Avalon
7. BitcoinX
8. Nvidia
9. ATI
10. Bitcoin Foundation 

Acquisitions/Technology Launches/Partnerships

• In April 2020, Visa, a major payment company entered into a partnership with Fold, a San Francisco-based Bitcoin cashback app, to deliver a credit card that will enable customers to receive Crypto currency bonuses relative to collecting money. The partnership aimed to provide a robust bitcoin payment ecosystem to the users, further driving its market growth.
• In January 2020, BDAM entered into a partnership with Zapaygo.com to augment crypto adoption. This partnership aimed to allow consumers to start using crypto currencies actively for payments at more than 900,000 stores, hotels, restaurants, stadiums and venues. This wide range of acceptance of cryptocurrency payment tend to bring future opportunities for the bitcoin payment ecosystem market growth. 

Key Market Players:

The Top 5 companies in the Bitcoin Payments Ecosystem Market are:

1. BitPay
2. Coinbase
3. CoinGate
4. MoonPay USA LLC
5. VeriFone, Inc.