In 2025, digital banks are overwhelmingly preferred for payments and everyday finance over crypto wallets. Despite a 9% return being available on crypto holdings to attract users, core issues persist that prevent a shift in user preference.
User inclination remains unaffected by yield as UX and trust continue as primary barriers, shaping future adoption dynamics.
Industry Leaders
Key players like Apple, Google, and PayPal lead digital banking, while crypto solutions like MetaMask find mass adoption challenging. Tim Cook has emphasized Apple Pay's security and user experience, leading to increased adoption and future transaction volumes projected in trillions. Tim Cook, CEO, Apple, stated, “We believe privacy and security are non-negotiable, so we’ve made Apple Pay even simpler — contactless, global, and built into every device.”
Market Impact
The preference for digital banks impacts the growth of the crypto wallet market significantly. Despite innovations in crypto wallet technology, security and ease of use remain paramount to users, overshadowing potential financial gains.
Market Projections
The digital banking sector is projected to generate a net interest income of $1.61 trillion globally in 2025. Embedded finance is a significant growth area, with expectations of reaching $124 billion, illustrating the financial advantage digital solutions hold over crypto wallets.
Tech Industry Insights
Joseph Lubin and industry peers recognize that UX improvements are critical for Web3 adoption. Despite advancements, only 13% of U.S. users find Web3 wallets intuitive, hindering broader adoption beyond niche markets.
Adoption Challenges
Regulatory clarity and technological advancements are key for future outcomes. Historical trends indicate that yield alone has not catalyzed adoption, as shown by previous high-yield protocols like Anchor not achieving a market shift. Data and continuous development from major crypto projects indicate a focus on user interfaces and trust factors.
The next wave of adoption will come only when Web3 wallets match the ease and trust of everyday digital payments. - Joseph Lubin, CEO, ConsenSys