Bitcoin Payments Market Report 2024

The bitcoin payments market size has grown rapidly in recent years. It will grow from $990.18 billion in 2023 to $1.07 trillion in 2024 at a compound annual growth rate (CAGR) of 15.2%. The growth during the historic period can be attributed to the rising demand for transparency in payment systems, the growing acceptance of digital payments by vendors, merchants, and consumers, the increased adoption of digital ledgers, the expansion of the lightning network, and the increasing number of crypto ATMs and mobile wallets.

The bitcoin payments market size is expected to see rapid growth in the next few years. It will grow to $1.9 trillion in 2028 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to the increasing penetration of smartphones, rising demand for affordable and secure payment methods, growing awareness of Bitcoin and its applications, a higher number of initial coin offerings (ICOs), and a greater number of Bitcoin payment processors. Key trends expected during this period include advancements in hardware and software wallets, innovation in payment technologies, progress in technology, new blockchain distributed technology protocols, and the development of innovative payment processors.

The rising popularity of crypto ATMs is projected to accelerate the growth of Bitcoin payments in the future. A crypto ATM, also known as a Bitcoin ATM, is an electronic kiosk that allows users to buy or sell cryptocurrencies using cash or debit/credit cards. The proliferation of crypto ATMs is driven by several factors, including increased interest and investment in cryptocurrencies, enhanced convenience and accessibility, and a broader range of supported cryptocurrencies. Bitcoin payments, enabled by crypto ATMs and mobile wallets, provide significant advantages over traditional financial systems by allowing users to quickly purchase, sell, or transfer Bitcoin using cash or smartphones without the need for extensive registration processes or bank accounts. For example, in April 2024, CryptoNews, a Lithuania-based company providing comprehensive coverage of the crypto and blockchain industry, reported that Australia had 1,008 active Bitcoin ATMs, accounting for 2.7% of the global crypto ATM network. Additionally, BitcoinWorld, a US-based firm specializing in cryptocurrency and blockchain technology, noted a 71.73% increase in crypto ATM installations in 2021. Consequently, the growing popularity of crypto ATMs and mobile wallets is fueling the expansion of the Bitcoin payments market.

Key players in the Bitcoin payments market are concentrating on developing innovative solutions, such as TokenPay, to enhance transaction efficiency and security while offering more integrated payment options within the cryptocurrency ecosystem. TokenPay (TPAY) is a decentralized cryptocurrency designed to improve privacy and security in digital transactions through advanced cryptographic protocols. For instance, in July 2024, OrdinalsBot, a US-based private enterprise specializing in Bitcoin, introduced TokenPay to broaden payment options for on-chain activities. This initiative enables users to make payments for on-chain activities using a range of cryptocurrencies, including Bitcoin. The goal is to attract a broader audience and facilitate user participation in on-chain activities related to Ordinals, thereby enhancing the flexibility and convenience of payment options for OrdinalsBot's users and supporting the adoption and development of the Ordinals protocol on the Bitcoin blockchain.

In November 2021, NYDIG, a US-based company specializing in Bitcoin payments, acquired Bottlepay for an undisclosed amount. This acquisition aims to bolster NYDIG's position in the Bitcoin payments sector and expand its capabilities to facilitate seamless and efficient transactions. Bottlepay, a UK-based company, provides a platform that enables users to make and receive payments using Bitcoin.

Major companies operating in the bitcoin payments market are Verifone Inc., Microsoft Corporation, Paypal Holdings Inc., Coinbase Global Inc., Binance Holdings Ltd., Etsy Inc., Paxful Inc., MoonPay USA LLC, Bitpay Inc., Coinspaid, CoinsBank, Utrust, The Pirate Bay, Genie Technologies Pte Ltd, Coingate, Spectrocoin Finance Ltd., OpenNode Inc., GoCoin LLC, Planet Express, Coinpayments Inc.

North America was the largest region in the bitcoin payments market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bitcoin payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the bitcoin payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Bitcoin payments involve using Bitcoin, a decentralized digital currency, as a means of exchange to pay for goods and services or to transfer funds. These payments are utilized for a range of purposes, including online shopping, remittances, investments, and peer-to-peer value transfers.

The key components of Bitcoin payments include hardware, software, and services. Bitcoin payment hardware refers to physical devices designed to facilitate Bitcoin transactions, enhancing the security and convenience of making and receiving Bitcoin payments. Various keys, such as private keys and public keys, play a crucial role in these transactions, which are applied in areas such as e-commerce, retail, and other sectors.

The bitcoin payments market research report is one of a series of new reports that provides bitcoin payments market statistics, including bitcoin payments industry global market size, regional shares, competitors with a bitcoin payments market share, detailed bitcoin payments market segments, market trends, and opportunities, and any further data you may need to thrive in the bitcoin payments industry. This bitcoin payments market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The bitcoin payments market consists of sales of cross-border payments, invoice payments, and automated payments. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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