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Survey Says Americans Are Embracing Digital Tokens for Purchases – With Gen Z in the Lead

By September 25, 2019 No Comments

This article was originally published here.


 

A new study by Big Four accounting firm KPMG shows that US consumers are increasingly willing to make purchases using blockchain-based tokens.

Says Arun Ghosh, KPMG US blockchain leader,

“Tokenization is ushering in the next generation of commerce. It provides inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency of blockchain. Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams and customer engagement opportunities.”

According to the study, about one-third of consumers are highly familiar with blockchain-based tokens with 63% agreeing that tokens are an easy form of payment, and 55% believing tokens will enable them to make better use of loyalty reward points.

Companies that can transfer their loyalty programs and reward points to a blockchain system will have new opportunities to interface with consumers and to grow their businesses.

KPMG researchers tout the benefits of tokenization as unprecedented.

“Tokenization can enhance the ability of enterprises to accurately and efficiently track the exchange of value associated with tangible and intangible assets. This ability opens unprecedented opportunities for a wide array of enterprise applications which can be applied across the full range of commercial engagement in B2B, B2C and C2C environments.”

Ghosh also notes that blockchain tokens can accelerate the transfer of value, ramping up throughput and engagement.

Key findings

  • 82% of consumers are willing to use tokens as part of an existing loyalty program.
  • 81% would trust the use of tokens more readily if they are already participating in a company’s loyalty program.
  • No demographic is more accepting of tokenization than Generation Z.
  • 83% of Americans surveyed, ages 18 to 24, are interested in the future of tokens.
  • Over half of older Americans – ages 65 and up – say they are also interested in the future of
    tokens.
  • 78% of Americans are more willing to use tokens with companies they already buy from.
  • 79% of Americans would be more willing to use them if they’re proven to be simple enough to use.
  • 45% of consumers with high familiarity of tokens are concerned about fraud-related issues.
  • 42% of Americans believe tokens are useful in gaming.
  • 60% of Americans are more likely to use tokens to make payments to small businesses.

The study also finds that “high-loyalty” industries such as banks, credit card companies, product/services, restaurants/fast food/coffee shops, electronics companies and media/telecom companies will have the easiest time developing token programs for their customers.

While the tokenization of rewards programs can fuel the growth of private blockchains as corporations aim to leverage the technology’s speed, instant settlements and ease-of-use, responses from the survey bode well for consumer adoption of blockchain-based cryptocurrencies such as Bitcoin, Bitcoin Cash and Litecoin, among many others, as people become more comfortable with spending crypto like cash and seeing the benefits of recording transactions on immutable blockchain ledgers.

Citing a report from CoinDesk, the researchers note Samsung’s first-mover advantage in the crypto space.

“Samsung has unveiled a cryptocurrency wallet that accepts certain tokens, while also supporting several decentralized apps, including one for crypto gaming and another for crypto collectibles platforms. If it catches on, and is found to be both secure and convenient, their first-mover advantage has enormous potential.”

KPMG’s Tokenization, Loyalty and Blockchain survey was conducted by Ketchum Analytics, which polled 1,000 Americans age 18+, and was designed to investigate the relationship between awareness of and willingness to use tokens among a general population audience.

You can check out more about the study here.

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