Crypto Transaction Success Rates Vary Depending On User Location, According to Recent Report

The cryptocurrency community has long been seeking ways to bridge the gap between traditional finance and fiat currencies, leveraging decentralized finance (DeFi) tools as a primary solution. One key aspect of this bridge-building effort is crypto on-ramp platforms, which enable users to transition seamlessly between these two financial ecosystems. However, a recent report from Cointelegraph Research and Onramper, a leading provider of crypto-based financial services, has shed light on the significant challenges facing this process.

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The Alarming Reality: 50% Transaction Failure Rate

According to the report, an astonishing 50% of fiat-crypto transactions fail, even after completing Know Your Customer (KYC) verification. This staggering statistic highlights the difficulties users face when attempting to navigate the complex transaction process. Furthermore, a remarkable 90% of users abandon their purchases due to transaction-related issues during the purchase flow.

Access the Full Report for Free

For those interested in exploring this subject further, a full version of the report is available for download at no cost. This comprehensive analysis delves into the intricacies of crypto on-ramps and sheds light on potential solutions to mitigate these challenges.

A Closer Look at the Largest Fiat-Crypto Onramps

The survey examined nine prominent fiat-crypto onramp platforms, including Coinify, MoonPay, Transak, Wyre, and several others. The results revealed that performance varies significantly across different onramps, with user location playing a crucial role in determining transaction success rates.

Transaction Authorization Rates by Region

Europe: boasted the highest success rates in transactions
Africa and South America: exhibited the lowest authorization rates

[Insert image description: Transaction authorization rates by region. Source: Cointelegraph Research]

Factors Influencing Transaction Success

The report identifies several key factors that impact transaction success on crypto onramps, including:

Payment methods: Bank transfers emerged as a superior payment method, achieving close to 100% success in two instances.
Fiat currency used for conversion: Different fiat currencies exhibit varying levels of transaction success rates.
Available trading pairs: The availability of specific trading pairs affects the likelihood of successful transactions.

Transaction Value: A Major Indicator of Success

The analysis revealed that transaction value is a significant indicator of success, with smaller transactions worth $0–$26 achieving a 66% authorization rate compared to transactions valued above $5,000, which typically have an authorization rate of 19%.

[Insert image description: Transaction authorization rates by value of transaction. Source: Cointelegraph Research]

Potential Solutions for Improving Transaction Authorization

The research concludes that token service providers can improve transaction authorization rates by offering a wide range of aggregated onramps within a single interface and dynamically routing transactions to provide users with the best option for their specific situation.

Experts Weigh in: On-Ramps as a Bridge to DeFi

Recently, at the World Economic Forum, Tether chief technology officer Paolo Ardoino referred to the platform’s stablecoin USDT as an on-ramp for Bitcoin. The Hong Kong Monetary Authority also described its upcoming retail central bank digital currency as a potential gateway into the DeFi space.

Conclusion and Research Collaboration

This article is the result of collaborative research between Cointelegraph and Onramper. While Cointelegraph does not endorse any content or product mentioned herein, readers are encouraged to conduct their own research before making any decisions related to these products or companies. It is essential for users to assume full responsibility for their choices.

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