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KPMG Research Suggests Consumers Are Willing to Use Digital Tokens

September 26, 2019
Ross Peili


KPMG Research Suggests Consumers Are Willing to Use Digital Tokens

KPMG ‘s latest report on blockchain adoption, suggests that 83% of Americans, aged between 18 and 24, are interested in the future of digital tokens.

More generation Z consumers are willing to use digital currencies for their online purchases, as long as the interface of the respective app, as well as the overall process of utilizing digital tokens, is user-friendly and easy to use by anyone regardless of one’s blockchain knowledge.

The policy-research firm believes that young people were already used to reward systems utilizing digital tokens to offer discounts, a metro ride, or credits for an arcade game, and blockchain technology is just taking the whole concept of digital assets a step further. 

The business value many companies find in blockchain infrastructure, which offers transparent, immutable, and frictionless transactions, is turning traditional tech companies and payment apps into blockchain-powered or nothing businesses.

Arun Ghosh, KPMG U.S. blockchain leader, said that tokenization provides “inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency blockchain technology offers.”

“Businesses that take advantage of tokenization can open the door to entirely new process improvements, revenue streams, and customer engagement opportunities,” he added. 

According to the survey, the majority of the American consuming crowd would consider digital tokens as a medium of exchange for physical or digital goods, purchase of services, and are more likely to trust a token that’s part of a loyalty program they’re already tethered to. 

“By using tokenization, companies can develop new forms of value exchange within an existing network, such as allowing consumers to use loyalty points for purchases with different merchants,” said Ghosh. “Not only can this create more engaging customer experiences, but it also offers significant operational efficiencies by accelerating the transfer of value.”

Blockchain will be essentially behind anything with a digital interface

KPMG is not the first to confirm that a more user-friendly and not developer-oriented approach would help digital currencies spread faster into the consumer crowd. 

Previously, EU parliament members, including Eva Kaili, stated that blockchain technology should be used by every app that offers some sort of micropayments services, or transfer of funds, regardless of their respective users’ intellectual capabilities when it comes to the underlying technology itself. 

It is simply more efficient in every aspect compared to traditional protocols of value transfer using digital means. 

People should still use their Apple and Google pay, WeChat, AliPay and all these apps they already utilize to send and receive funds – the only thing that needs to be changed is how these apps manage to fulfill their users’ requests. 

Blockchain offers increased security, controlled transparency, and frictionless transactions. Therefore, it’s already a better solution for digital monetary exchanges and companies offering financial services in the sphere should be already working on integrating blockchain technology, even when their clients won’t see any practical difference in the user-level experience. 

I mean, did you think people know how Visa or Mastercard really work? What kind of encryption they’re using? What are the fees for their service? Where are their databases? Obviously not. As long as using a Visa card is as simple as swiping the card, the user will never question the technology that makes the transaction possible.