The Rise of Crypto Payments in Traditional Finance and E-commerce

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The global payments landscape is undergoing a significant transformation, driven by the increasing adoption of blockchain technology. Growing demand from individuals and businesses for more efficient payment systems has led to the integration of cryptocurrency across various sectors, including remittances, payment cards, and e-commerce. The advantages of crypto payments—such as shorter settlement cycles, lower transaction fees, and higher consumer adoption rates—are encouraging more retailers to accept digital assets. Moreover, traditional payment and e-commerce companies are entering the crypto space, offering seamless and secure payment solutions for both consumers and enterprises.

This article explores how these traditional firms are adopting crypto payments, the services they offer, and their partnerships with crypto-native infrastructure providers.

Why Are Traditional Companies Adopting Crypto Payments?

Traditional payment methods like cash, bank transfers, and payment cards still dominate the market. However, crypto payments are gaining significant traction. According to data from Visa, its payment network processed $2.5 billion in crypto transactions in Q1 2022, up from $1 billion in Q1 2021.

Cryptocurrencies enable faster global payments by eliminating intermediaries like banks and reducing complexity. Although traditional payment companies were initially hesitant to adopt crypto, recent rapid developments in the blockchain industry and growing demand from consumers and businesses have prompted leading firms—including Mastercard, Visa, and Shopify—to embrace it.

The high volatility of cryptocurrencies had been a major concern for businesses. However, the emergence of stablecoins has increased interest in crypto payment integration. Globally, over 15,000 businesses across industries such as gambling, travel, food, and retail now accept cryptocurrencies. A December 2021 study by Deloitte found that nearly 75% of retailers plan to accept crypto payments by the end of 2023.

Crypto payments offer several benefits for both consumers and businesses:

Crypto Products and Services Offered by Traditional Firms

To meet the diverse needs of crypto users, traditional payment and e-commerce companies are partnering with crypto-native service providers—such as custodians and payment processors—to offer a range of crypto-based products. Examples include:

Trading and Fund Transfer Services

As interest in digital assets grows, companies like PayPal and Revolut have launched crypto trading services and peer-to-peer transfer capabilities. PayPal collaborates with blockchain infrastructure provider Paxos, while Revolut partners with Apex Crypto. Similarly, U.S.-based financial services firm Block (formerly Square) offers Bitcoin trading via its Cash App platform.

Payment Cards

Visa and Mastercard both offer crypto-linked payment cards in partnership with crypto exchanges and wallets. These cards allow holders to make payments (with cryptocurrencies automatically converted to fiat). Platforms like Coinbase, Bitpanda, and Wirex offer Visa crypto cards, while BitPay and Nexo provide Mastercard crypto cards. Some cards also offer crypto rewards based on spending volume.

Merchant Payment Services

Traditional payment companies are enabling merchants to accept crypto payments. For example, PayPal’s "Checkout with Crypto" service allows users to spend cryptocurrencies from their wallets on e-commerce platforms. Supported cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Similarly, payment service provider Worldline partnered with Swiss crypto service provider Bitcoin Suisse to develop WL Payments, enabling offline and online merchants to accept BTC (via Lightning Network) and ETH.

E-commerce platforms like Shopify, WooCommerce, and BigCommerce are collaborating with crypto service providers to allow merchants to accept crypto payments. Shopify, through partnerships with Crypto.com, Coinbase Commerce, BitPay, DePay, OpenNode, and Strike, enables merchants to accept cryptocurrencies like BTC, ETH, Dogecoin, MATIC, and BNB.

Additionally, some payment companies offer stablecoin settlement services to avoid the complexity of converting digital assets to fiat. Visa, in partnership with Worldpay (a subsidiary of FIS), which itself collaborates with stablecoin issuer Circle, enables businesses to receive settlements in USDC.

Opportunities for Traditional Payment and E-commerce Platforms

Traditional payment and e-commerce platforms have significant advantages over crypto-native providers due to their large user bases, robust systems, and regulatory compliance. This makes them a safer choice for customers using crypto payments. According to data from Paying With Cryptocurrency, as of June 2022, only about 23% of businesses accepting crypto payments used native crypto wallets, while the majority relied on solutions from traditional payment companies.

Offering crypto payment services can provide traditional firms with a competitive edge. By integrating cryptocurrency and blockchain technology, they can meet the growing demand for such services. 👉 Explore advanced payment solutions

Timeline of Crypto Payment Adoption (2017–2021)

The following timeline highlights key developments in crypto payments by leading traditional payment and e-commerce companies:

Developments in 2021–2022

1. Expanded Product Offerings

In June 2022, PayPal expanded its crypto services, allowing U.S. customers to transfer cryptocurrencies to external wallets and exchanges. It also eliminated fees for crypto transfers between PayPal users and obtained a BitLicense from the New York Department of Financial Services. In January 2022, the company announced plans to launch its own stablecoin.

In August 2022, Revolut added support for 22 new tokens in the UK, enabling trading for over 80 cryptocurrencies. It also registered with the UK Financial Conduct Authority and expanded its crypto services to Singapore.

2. Strategic Partnerships

Visa and Mastercard continue to partner with crypto wallets and exchanges to launch payment cards. In October 2020, Mastercard collaborated with Paxos to help financial institutions offer crypto trading. In September 2022, Mastercard partnered with hi to launch customizable NFT payment cards. Other partners include Nexo and Binance.

Visa partnered with Brazilian banks Alterbank and Zro Bank, as well as Argentina’s Satoshi Tango, to launch crypto cards.

In June 2022, American Express partnered with Abra to launch its first crypto card, offering cashback in over 100 cryptocurrencies.

3. Business-Focused Crypto Solutions

In September 2022, BigCommerce partnered with BitPay and CoinPayments to develop crypto payment solutions.

In May 2022, Shopify partnered with Crypto.com to allow merchants to accept over 20 cryptocurrencies.

In April 2022, Stripe launched crypto payment services for instant settlements.

In February 2022, eBay integrated crypto payments and acquired NFT marketplace KnownOrigin in June.

In December 2021, Block introduced Bitcoin gifting on Cash App.

In February 2022, FIS’s Worldpay partnered with Circle to enable USDC acceptance. In March, it collaborated with Shyft Network for regulatory compliance.

In June 2022, Mastercard partnered with NFT marketplaces like Immutable X and Nifty Gateway, allowing cardholders to purchase NFTs directly.

The Future of Crypto Payments Looks Promising

As interest in digital assets grows among merchants and consumers—and as cryptocurrencies are increasingly viewed as a viable and efficient payment method—the adoption of crypto payments by traditional companies is a natural progression.

Cryptocurrencies have the potential to create an advanced global payment ecosystem, offering significant business opportunities for traditional payment and e-commerce platforms. The continued development of stablecoins will further enhance transaction speed and reduce costs, which is crucial for sustained adoption.

In summary, crypto payments are opening new pathways for businesses to serve their customers. 👉 Discover more strategies for digital payments

Frequently Asked Questions

What are the main benefits of crypto payments for businesses?

Crypto payments offer lower transaction fees, faster settlement times, and access to a global customer base. They also reduce the risk of chargeback fraud and provide opportunities for additional revenue through staking or lending.

How do crypto payment cards work?

Crypto payment cards are linked to a user’s cryptocurrency holdings. When making a purchase, the crypto is automatically converted to fiat currency, allowing spending at any merchant that accepts traditional card payments.

Are crypto payments secure?

Yes, crypto payments are secured by blockchain technology, which ensures immutability and transparency. However, users must follow best practices for wallet security and private key management.

Which major companies currently accept crypto payments?

Companies like PayPal, Shopify, and Microsoft accept crypto payments. Many e-commerce platforms also enable merchants to integrate crypto payment options.

What role do stablecoins play in crypto payments?

Stablecoins reduce volatility by pegging their value to stable assets like fiat currencies. This makes them ideal for everyday transactions and business settlements.

How can merchants start accepting crypto payments?

Merchants can use payment processors like BitPay, Coinbase Commerce, or integrated solutions from platforms like Shopify. These services handle conversion and settlement, minimizing complexity.