The COVID-19 pandemic has sped up the transition to a digital and cashless society, leading more people to become reliant on digital banking as a means to manage their money. The cryptocurrency space in particular has seen tremendous growth since the start of the coronavirus—but some are still catching up to this trend.
In an October 2020 survey from FICO, just 11% of US adults said they currently hold cryptocurrency assets. Meanwhile, March 2021 data from Measure Protocol pointed to cryptocurrency’s opportunity: nearly two-thirds (65.4%) of mobile phone users in Great Britain and the US said they were at least somewhat likely to invest in cryptocurrency in this year.
As customer interest grows—and more online start-ups join the fintech space—companies will have to differentiate themselves and adapt to expectations in order to achieve long term success.
Insider Intelligence has put together a list of the top markets, currency, and exchange companies—including Ripple, Kraken, and Coinbase. We delve into what has led to their growth, and what it means for the future of financial services.
Ripple and its cryptocurrency XRP have become increasingly popular due to its ability to move money as quickly as information is exchanged today. Originally called OpenCoin, the company was founded in 2004 by Ryan Fugger, Jed McCaleb, and Chris Larsen.
Unlike most cryptocurrencies that focus on the individual, Ripple was created specifically to serve banks and payment providers, so that they can speed up transactions and lower costs.
While Ripple’s network spans 300-plus providers across more than 40 countries—and is gradually adding more banks to its system—its long term success will depend on whether a majority of banks choose to use XRPs instead of their current infrastructure.
Kraken is based in the US and offers more than 50 types of cryptocurrencies to trade. It also provides rewards on staked coins that are available within a user’s wallet, paid out bi-weekly. The company uses a fee structure that decreases the rate for both the maker and taker as their 30-day volume increases.
Kraken is one of the oldest and most secure crypto currency exchanges, which allows consumers to trade directly from fiat currency to crypto. Its security is a big selling point, as only 28% of those polled in CouponFollow’s January 2021 survey consider cryptocurrency the safest way to pay.
Coinbase was founded in 2012…