Digital Currency Transaction Success Rate Depends On User Location, Suggests Report

What – A recent report states that the success rate of cryptocurrency transactions depends heavily on the user’s location.
Why – It depends not only on users’ information and verification, such as the Know Your Customer (KYC) process.
What Next – This observation emerged in a new crypto-based financial service provider report, Cointelegraph Research & Onramper.

This report by the crypto giant revealed that half (50%) of the fiat digital currency transactions failed after completing the KYC verification.

Crypto Transaction Success Rate Tied To User Location

Cointelegraph surveyed some crypto exchanges, including MoonPay, Coinify, Wyre, Transak, etc., to trace the issue. The investigation revealed that the performances of the exchange are not the same. According to the report, the transaction failure has led to about 90% abandonment of crypto dealings. 

The data showed that some countries have a significantly higher success rate for transactions than others. This is due to various factors, including local regulations, the availability of crypto-friendly banks and financial institutions, and the country’s technological infrastructure level.

For instance, the success rate of transactions tends to be higher in countries like Japan and South Korea, where there are more established regulations and infrastructure for cryptocurrencies. On the other hand, some countries in Africa and South America, with fewer regulations and less developed financial infrastructure, tend to record low success rates in transactions.

Other Factors Influencing Transaction Performance

While user location significantly influences crypto transactions, other factors contributing to the issue are the different payment methods and transaction values. According to the report, bank transfers are reliable as they guarantee almost 100% transaction success. 

Also another major success indicator is the transaction value. Smaller transaction values had more chances of success than higher ones. Transaction value worth about $0 to $26 had around 66% authorization rate, while $5K and above had around 19% authorization rate.

This information is important for crypto traders and businesses accepting cryptocurrencies as payment. Traders must know the success rates in different countries to avoid losing money on failed transactions. In contrast, businesses must consider success rates when deciding which payment method to use.

The researchers suggest that as more countries establish regulatory frameworks for cryptocurrencies and develop their financial infrastructure, the success rates for crypto transactions will become more consistent globally. However, in the meantime, crypto users need to be aware of the potential variability in success rates and adjust their strategies accordingly.

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