The young and the frugal are buying less crypto

People who struggle to make ends meet are much more likely to buy cryptocurrency to make payments than to make money.

In the recent PYMNTS report, “Paying With Cryptocurrency: Can Crypto Become A Profit Center For Merchants At Checkout?— a partnership with BitPay — over 43% of respondents who described themselves as struggling from paycheck to paycheck said payments were their top motivation.

Table 4 why consumers plan to buy crypto

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This decreased as respondents’ financial lifestyles improved.

Less than a third (32%) of those living comfortably from paycheck to paycheck and only 23% of those not living paycheck to paycheck chose payments as their primary motivation.

Nevertheless, since paying with crypto in stores and online is still quite rare, it is quite clear that many people in all three income classes are coming to view cryptocurrencies as a form of payment.

On the other hand, only 36% of the financially tightest group said that buying crypto was an investment, compared to 51% of the comfortable group and 59% of the richest. All three groups estimated the fear of missing out at about 15%.

The former, who struggle to live paycheck to paycheck, were also much more likely to buy cryptocurrency in the coming year, with 38% saying they are very or very likely to do so. That’s an increase from 22% of those who live comfortably from paycheck to paycheck and 17% of those who don’t live paycheck to paycheck.

Interestingly, these numbers didn’t add up when the respondents were broken down by income rather than by financial lifestyle.

Table 3b consumer probability to buy digital currency income level

In the wealthiest population group, those earning more than $100,000, 33% were very or very likely to buy crypto in the next year. That figure rose to 27% for those earning between $50,000 and $100,000, but then abruptly dropped to just 15% for those earning less than $50,000. Which suggests that living on a budget is not the same as living on a low budget.

With one exception, buying crypto by age group was more or less what you would expect. The very and very likely group was small for baby boomers and seniors (7%) and gradually increased as the population got younger: Gen Xers 28%, Bridge Millennials 38%, Millennials 42%.

But then something interesting happens.

Table 3c consumer probability to buy digital currency age group

Gen Z, the group generally considered to be the most comfortable and educated about cryptocurrencies, took a big plunge, falling slightly below Gen X at 27% who are very and very likely to buy digital assets next year. One possible reason that comes to mind is that Gen Z is also the group with the lowest disposable income.

About: Results from new PYMNTS research, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, the UK and the US. and showed a strong demand for one super multifunctional app instead of using dozens of individual apps.

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