Merchant Acceptance of Stablecoins: Obstacles & Opportunities

Stablecoins process $27 trillion in transaction volume, surpassing the combined volume of Visa and Mastercard. Yet you still can’t use them at most stores. What’s blocking the obvious future of payments? The benefits are clear, including low fees/fast settlement are clear, yet obstacles persist.

This article explores why merchant adoption of stablecoins remains limited, the key obstacles blocking acceptance, the opportunities and benefits for merchants, successful case studies, and what needs to happen for stablecoins to achieve mainstream merchant acceptance.

The Current State of Merchant Acceptance

Limited Adoption

While some online merchants accept stablecoins, physical retail acceptance remains rare outside crypto-native businesses. The disconnect between stablecoin transaction volume and merchant acceptance reflects their primary use case. According to Bastion research, in 2024, total stablecoin transfer volume reached $27.6 trillion, surpassing the combined transaction volume of Visa and Mastercard by 7.68%. However, a large portion of this volume came from trading activity on centralized and decentralized exchanges, where stablecoins serve as the primary trading pair.

Despite this, stablecoins’ increasing adoption in real-world payments suggests they are becoming more than just a tool for crypto markets. Major payment companies, including Visa, Stripe, and Revolut, have integrated stablecoins to reduce fees and enhance transaction speed. Stripe began supporting USDC payouts in 2023 and strengthened this initiative with its $1.1 billion acquisition of Bridge in 2024, enabling businesses to accept digital dollars on blockchains like Solana and settle in fiat with lower costs.

Geographic Variance

Acceptance is significantly higher in emerging markets with currency instability than in developed markets. In high-inflation or capital-controlled economies like Argentina, stablecoins offer businesses a more stable way to manage cash. A small Argentine importer earning revenue in pesos may struggle to preserve value due to inflation exceeding 100% for 2024. Converting pesos into a USD-backed stablecoin like USDC immediately after receiving payments allows them to hold value in digital dollars, accessible twenty-four-seven and without needing a foreign bank account.

TRM Labs 2025 report reveals stablecoin adoption surging in emerging markets, with South Asia up 80% to $300 billion volume; Nigeria ranks as number 12 amid Africa’s resilient growth via P2P channels despite bans. Stablecoins reached $4T volume Jan-Jul (83% YoY), powering payments for unbanked populations.

Market capitalization of USDT and USDC vs other stablecoins. Source: TRM Labs​

Major Players

Several prominent companies now accept stablecoins. Shopify merchants can accept USDC via Coinbase’s Base chain, onboarding stablecoin rails for thousands of online merchants. Shopify even provides a 0.5% rebate on USDC orders for users while eliminating international transaction fees. PayPal launched its stablecoin backed by the US dollar, PYUSD, in 2023 in a major step for a fintech giant, and plans to integrate PYUSD into more products this year, including as an option for its more than 20 million small to medium-sized merchants to pay their vendors.

Payment processors enabling stablecoin acceptance include BitPay, Coinbase Commerce, CoinGate, and others. ALT 5 Sigma, a Nasdaq-listed B2B crypto payments processor, saw explosive growth from $39 million in volume in 2020 to over $2 billion in 2024.

Key Obstacles to Merchant Adoption

Accounting Complexity

The challenge of accounting for crypto payments for business, especially for tax purposes and financial reporting, creates friction for merchants. Traditional accounting systems are not designed to handle cryptocurrency transactions, requiring additional software and expertise. Merchants must track the dollar value of stablecoin payments at the time of receipt for tax reporting, even though stablecoins maintain relatively stable values.

Volatility Concerns

Merchant fears about price volatility persist even though stablecoins are designed to be stable. While major stablecoins like USDC and USDT maintain tight pegs to the dollar, occasional depegging events create anxiety. The 2023 USDC depeg during the Silicon Valley Bank crisis, though quickly resolved, demonstrated that even well-collateralized stablecoins face risks.

Technical Barriers

The complexity of integrating crypto payment systems with existing point-of-sale and e-commerce platforms presents a significant hurdle. According to an EY-Parthenon survey, 41% of organizations can integrate stablecoins with moderate effort, while 36% would need major system changes. Merchants accustomed to plug-and-play credit card terminals find blockchain integration daunting.

The Opportunities and Benefits for Merchants

Lower Transaction Fees

Stablecoin payments cost much less than traditional rails when processing transactions, saving significant money on high-volume sales. In 2024, US merchants paid a total of $187 billion in card processing fees, a substantial chunk of which could be eliminated through the adoption of payment methods based on digital currencies such as stablecoins. Shopify has already caught on to this trend through the adoption of USDC payments, providing a 0.5% rebate on USDC orders.

Instant Settlement

Stablecoin payments settle in minutes versus days for traditional payments, improving cash flow. A payment from a European company to a US supplier sent through SWIFT-based channels can incur fees ranging from $25-$50 due to intermediary bank charges and other processing costs, with settlement taking one to three business days.

Global Reach

Stablecoins enable accepting payments from anywhere without currency conversion hassles. Merchants can receive payments from customers worldwide without establishing merchant accounts in multiple countries or dealing with foreign exchange risks.

No Chargebacks

Irreversible crypto payments eliminate chargeback fraud, though this cuts both ways. For merchants in high-chargeback industries like digital goods or online services, this represents a major advantage. However, legitimate consumer disputes become harder to resolve, requiring merchants to develop alternative dispute resolution processes.

Reduced Banking Dependence

Crypto payments reduce reliance on banks and payment processors that can deny service. For businesses in controversial but legal industries, or merchants in countries with unreliable banking infrastructure, stablecoins provide an alternative payment rail that cannot be easily shut off by intermediaries. Several traditional firms are already establishing a crypto account for business to manage these new payment flows.

Success Stories and Case Studies

Online Marketplaces

Shopify’s crypto integration enables thousands of merchants to accept stablecoins. The integration with USDC via Coinbase’s Base chain makes accepting stablecoins as easy as traditional payment methods, with merchants receiving a rebate rather than paying processing fees.

Gaming and Digital Goods

Gaming companies and digital content creators embrace stablecoin payments. The digital nature of these goods aligns naturally with digital currencies, and the lack of chargebacks protects against fraud common in digital goods transactions. SHIB experienced significant growth, driven by its integration into Polygon and Binance Smart Chain networks in May 2024, leading to a 61.6% increase in SHIB order volume.

Cross-Border E-Commerce

Merchants use stablecoins to simplify international sales. Rather than dealing with multiple currency accounts and foreign exchange risks, merchants can accept USDT or USDC from customers worldwide and settle in their local currency when needed.

Infrastructure Enabling Adoption

Payment processors make accepting stablecoins as easy as credit cards. Services like BitPay and Coinbase Commerce provide simple integrations that handle the complexity of blockchain transactions, wallet management, and conversion to fiat if desired. These processors have evolved to offer the same level of reliability and ease of use that merchants expect from traditional payment gateways.

Point-of-sale systems are adding crypto payment options, making physical retail acceptance practical. Modern POS terminals can generate QR codes for stablecoin payments, allowing customers to pay with their mobile wallets just as easily as tapping a credit card.

Automatic conversion services instantly convert stablecoins to fiat, eliminating merchant exposure to crypto. For merchants who want the benefits of stablecoin payments without holding cryptocurrency, these services provide the best of both worlds: low fees and instant settlement, with immediate conversion to traditional currency. This smooth flow improves the fiat-to–crypto onramp process.

Accounting software integration helps merchants track crypto payments. Platforms like QuickBooks are adding crypto payment tracking, making it easier for merchants to maintain accurate books and handle tax reporting requirements.

Regulatory compliance tools help merchants meet tax reporting and compliance requirements. As regulations clarify, specialized software solutions are emerging to automate compliance processes, reducing the burden on merchants.

What Needs to Happen for Mass Adoption

Regulatory Clarity

Clear, reasonable regulations would remove merchant hesitation and enable broader adoption. The passage of the GENIUS Act in July 2025 represents a major milestone, but Bank of America CEO Brian Moynihan noted that a number of issues still need to be resolved from a regulatory standpoint for banks to be comfortable embracing stablecoins.

Simplified Integration

Plug-and-play solutions that work with existing systems without technical expertise are essential. The integration process must become as simple as setting up a credit card terminal, with clear documentation and support that doesn’t require blockchain expertise.

Consumer Education

More consumers need to understand and hold stablecoins before merchant acceptance makes sense. Stablecoin payments still remain unknown to the vast majority of consumers. Educational initiatives must explain the benefits and mechanics of stablecoin payments in terms that non-technical users can understand.

Major Platform Support

Integration by Square, Stripe, or PayPal could catalyze mainstream adoption. PayPal’s launch of PYUSD represents a significant step, but broader integration across all major payment platforms would provide the legitimacy and ease-of-use needed for mass merchant adoption.

Conclusion

Merchant acceptance of stablecoins offers compelling benefits, including lower fees, faster settlement, and global reach, but faces significant obstacles around regulation, integration complexity, and limited consumer demand.

Adoption is also growing in emerging markets where currency instability drives demand, online services where integration is easier, and high-value goods where fee savings are substantial. The infrastructure is improving rapidly with better payment processors, POS integration, and accounting software support. As regulations clarify, particularly with the passage of the GENIUS Act in the United States and MiCA in Europe, and as consumer adoption grows, merchant acceptance will accelerate.

However, the technology, regulation, and consumer adoption must mature further before stablecoins become a standard payment option alongside credit cards and cash. Accept stablecoin payments and reach global customers with Digitap for Business. Our merchant solutions make crypto payments simple, secure, and seamless.

FAQ

Why don’t more merchants accept stablecoins?

Many merchants hesitate due to regulatory uncertainty, lack of consumer demand, the effort needed to integrate crypto payments, concern over volatility despite stablecoins being pegged, and the need to convert stablecoins back to fiat for expenses.

What are the benefits of accepting stablecoin payments?

Benefits include lower transaction fees (often less than 1%), instant settlement without waiting days, no chargebacks, access to global and unbanked customers, and secure blockchain payments.

How do merchants convert stablecoins to fiat?

Merchants typically use crypto payment processors or exchanges that allow instant conversion of stablecoins into fiat currency.

Are stablecoin payments legal for merchants?

Yes, stablecoin payments are legal in many jurisdictions, but merchants must comply with relevant regulations such as AML/KYC rules. Regulations vary by country, so merchants need to stay updated on local laws and often partner with compliant payment service providers.

Which stablecoin is best for merchant payments?

The most widely accepted stablecoins for merchant payments include USDC and USDT due to their liquidity, regulatory compliance efforts, and broad ecosystem support.