International BTC payments market will achieve the $3.7 billion benchmark by 2031, clocking in a compound annual growth rate (CAGR) of 16.3% from 2022 to 2031, owing primarily to private keys and hardware. 

Specifically, the insights were generated by Allied Market Research forecasted via a report published on Oct. 24. 

Per the document, operational demand for efficiency and transparency in payments networks, as well as data security services development and a rise in demand for remittances in emerging economies, are some of the significant contributors help the rise in the sphere in the coming years. 

“Furthermore, increase in demand for bitcoin among banks, and financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for the bitcoin payments market expansion during the forecast period.” 

Last year, the private keys segment reportedly took up three-fourths of the total Bitcoin payments market share, per the report, with the segment expected to continue its dominant stance across the forecast period, with approximately 20.3% of CAGR until 2031, followed by the hardware sector that is set to grow 19.8% during the same period. 

E-commerce transactions share a likelihood of maintaining their relevance in the sphere, witnessing a climb of around 20.2% by 2031, per the report. 

The Asia-Pacific region is predicted to carries on with its market dominance by 2031, although the biggest growth is expected to be generated by North America, with a CAGR of 18.6% during the period.

Mentioning the barriers and challenges visible in the sector, the report took into account high deployment costs and low global awareness regarding the use of Bitcoin may cause negative effect on the sector’s progress.

“Distributed ledger technology has spread from cryptocurrency to a wide number of applications in the financial and government industry. However, numerous people and financial & government industries across developing nations such as India, Africa, and Australia are less aware regarding transactions made using bitcoin payment, which hampers growth of the bitcoin payment market across the globe.”