Crypto Is Moving Into the Payments Mainstream, a New Study Finds

Merchants and consumers are embracing cryptocurrency as a mainstream payments option, according to a study from the National Cryptocurrency Association and PayPal Holdings Inc.

Some 39% of merchants surveyed accept cryptocurrency at checkout, while 84% believe crypto payments will become common in the next five years, the study says. A key driver of merchant adoption of crypto as a payment option is consumer interest in paying with the digital currency. Among the merchants surveyed, 88% said they have received customer inquiries about paying with crypto, and 69% said customers want to use crypto at least once a month. In addition, 79% of merchants indicated accepting crypto could help them attract new customers.

The Harris Poll surveyed 619 payment-strategy decision makers in the retail/e-commerce, hospitality/travel, luxury/specialty, and digital goods/gaming industries on behalf of The National Cryptocurrency Association last October.

Large enterprises, defined as businesses with more than $500 million in annual revenue, are among the biggest adopters of crypto as a payment option. Among large enterprises, 50% report they already accept crypto. By comparison, 34% of small businesses and 32% of midsize companies say they accept crypto. Currently, the bulk of crypto acceptance is happening online, a PayPal spokesperson says by email.

Once a merchant begins accepting crypto, it can expect the digital currency to account for a substantial portion of its sales. Merchants that accept crypto report that the digital currency represents 26% of their total sales, while 72% say crypto payments have increased the past year. Those trends show that once crypto is implemented as a payment option, it quickly gains traction with consumers, the study says.

Merchant segments leading the way on acceptance include hospitality and travel (81%), digital goods, gaming, luxury, and specialty retail (76%), and retail and e-commerce (69%).

Among the advantages to accepting crypto, faster transaction speeds and access to and attraction of new customers topped the list, each garnering 45% of responses. Enhanced security features (41%) and greater privacy for customers (40%) rounded out the top responses. Respondents could cite more than one advantage.

When it comes to the decision to add crypto as a payment option, 90% say they would try accepting crypto if the experience matched the ease of traditional card payments, while 90% say they would be likely to accept crypto if the setup process were as simple as accepting credit cards.

Among consumers, Millennials are the biggest adopters of the digital currency (77%), followed by Gen Zers or younger generations (73%).

To make crypto more accessible to consumers as a payment option, PayPal last July announced Pay With Crypto, a service that allows consumers in the United States to link third-party digital wallets, such as wallets from crypto exchanges or noncustodial wallets, and pay for purchases using a variety of cryptocurrencies, including Bitcoin, Ether, and the SOL and USD stablecoins.

“This allows consumers to pick and choose the tokens and wallets they use at checkout, offering flexibility and choice,” the PayPal spokesperson says.

Ultimately, the key to expanding crypto acceptance at the point-of-sale will be education and simplicity, advocates say. “What this data makes clear is that interest in crypto isn’t the problem; understanding is,” Stu Alderoty, president of the National Cryptocurrency Association, says in a statement. “Too many people still don’t see how crypto fits into their everyday lives. That’s why partnerships with trusted platforms like PayPal are so important. We’re working together to help close the knowledge gap and show how crypto can be simple, accessible, and easy for everyday businesses and consumers.”