Paxful, the popular crypto peer-to-peer (P2P) trading platform supporting the trading of, among other assets, bitcoin (BTC) and USDT, a stablecoin, has released data showing which payment methods its clients prefer.
U.S., Kenya, and Ghana traders prefer online wallets
In a tweet on May 18, Paxful revealed that there is a great disparity between payment schemes in emerging and developing economies.
Although Paxful provides a platform connecting and enabling secure transactions, users can trade using their choice settlement methods.
According to collated data, there are over 300 payment methods users can opt for, including bank transfers and wallets like CashApp, PayPal, or MPesa.
However, based on the latest data, users in Nigeria and India, two of the most populous countries in the world, prefer using bank transfers. In this design, traders can swap cryptocurrencies for fiat or vice versa, with settlement being in cash, transferred from either party directly from their choice banks.
Here, a crypto buyer, for example, will receive bitcoin or USDT in their wallets and pay the crypto seller in fiat, sent to their bank accounts.
Meanwhile, traders from Kenya, Ghana, and the United States prefer to trade straight from their online wallets. There are various options available enabling trading.
For example, in Africa, users can choose Flutter Wave or MPesa to settle in fiat. The crypto seller receives payment in the local currency straight from these online wallets.
Paxful data shows that in the United States, traders have opted for online wallets, not bank transfers. That means options like PayPal or CashApp, are popular and convenient.
Unlike bank transfers, online wallets offer several advantages. For instance, it has proven to be convenient and flexible for many users as they don’t have to go through the hassle of login into bank accounts.
The rising penetration of internet and smartphone use, especially in emerging economies in Africa, Latin America, and the Indian subcontinent, could accelerate the use of online wallets.
Studies predict that online wallets could rise to over $4 billion by 2025, nearly double from 2020, partly because of the increasing acceptance of cryptocurrencies.
Paxful recently made headlines when it briefly shut down in early April. The dispute between its co-founders, Ray Youssef and Artur Schaback, centered primarily on control of the company and its finances.
The P2P crypto trading firm has since resumed operations. Still, in a recent tweet, Youssef said he had been banned from accessing the platform and is no longer part of the company.