The Rise in Stablecoin Adoption By Merchants

More Businesses are Using and Accepting Stablecoin; Learn Why.

Digital payments are changing fast, with stablecoins becoming a major player in the financial world among other popular payment methods. As traditional payment methods struggle with high fees, slow settlements and complex cross-border transactions, stablecoins offer the stability of regular currencies combined with blockchain innovation.

Merchants around the world are starting to pay attention. From online retailers to global service providers, more businesses are exploring stablecoins as a reliable, cost-effective way to accept payments. With lower processing fees, near-instant transfers and access to global customers without the hassle of currency conversion, stablecoins have a lot to offer.

What Are Stablecoins and How Do They Work?

Stablecoins are cryptocurrencies designed to maintain steady value by pegging to stable assets, usually fiat currencies like the US dollar. Unlike Bitcoin, which has wild price swings, stablecoins offer blockchain benefits without volatility.

There are three main types of stablecoins:

1. Fiat-collateralised: Backed by reserves of traditional currencies (e.g., USDC, USDT)
2. Crypto-collateralised: Backed by other cryptocurrencies
3. Algorithmic: Use smart contracts to maintain price stability

Stablecoins run on blockchain, a decentralised digital ledger recording all transactions across a computer network. This technology makes transactions transparent, secure and permanent without intermediaries like banks.

Accepting stablecoins doesn’t require deep technical knowledge. The process feels similar to other digital payments, but with blockchain perks.

Popular stablecoins like USDC, USDT and PYUSD are moving into the mainstream through partnerships with established financial institutions. For example, in April 2025, Mastercard unveiled comprehensive capabilities to power stablecoin transactions from wallets to checkouts, creating a complete ecosystem where consumers can spend stablecoins while merchants can receive them.

The Key Drivers of Stablecoin Adoption by Merchants

Stablecoin adoption by merchants is increasing as they turn to these digital assets to solve persistent problems with traditional payment methods. Here’s why:

Lower Transaction Costs

Credit cards typically charge 2–4% per transaction, but stablecoin fees range from 0.5 to 3.0%. For businesses with thin profit margins, this difference can be huge for those focused on managing payment costs.

Faster Settlement

Traditional cross-border payments often take 2 to 5 business days, delaying cash flow. Stablecoin transactions settle nearly instantly, 24/7, regardless of banking hours or holidays. This speed improves working capital management and provides immediate confirmation to merchants and customers.

Better Security and Fraud Resistance

Blockchain’s immutable ledger eliminates chargeback risk, a major issue with credit cards. Combined with cryptographic security and payment tokenisation, stablecoins offer strong protection against fraud, though risks like wallet hacks remain.

Simplified Cross-Border Payments

Stablecoins bypass correspondent banking, reducing currency conversion fees and delays. However, converting between fiat and stablecoins still requires on/off ramps, which can add costs and processing time. Despite this, stablecoins simplify global transactions and help merchants enter new markets with fewer barriers.

Improved Accessibility and Financial Inclusion

Accessible via smartphone and internet, stablecoins reach underbanked populations worldwide. This broader accessibility lets merchants tap into markets previously out of reach, supporting greater financial inclusion.

Common Challenges and Barriers to Stablecoin Adoption by Merchants

Merchants considering stablecoin payments need to navigate several key challenges:

Regulatory Uncertainty

The regulatory landscape for stablecoins is still developing, creating adoption hurdles. In the United States, two major bills are moving through Congress with support from both parties:

1. The STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025)
2. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025)

These bills aim to create a federal regulatory framework for payment stablecoins, including requirements for issuers to maintain 1:1 reserves. Merchants must also maintain compliance with KYC in payments, which adds to the complexity during this transition period.

Regulatory uncertainty, integration complexity and customer education remain hurdles for merchants. However, as the ecosystem matures and more businesses see the advantages, stablecoin use in commercial transactions will likely accelerate.

Integration Complexity

Connecting existing payment systems with blockchain infrastructure presents technical challenges:

• Setting up digital wallets to receive and hold stablecoins
• Implementing security protocols and key management systems
• Integrating blockchain transactions with existing accounting systems

Customer Education and Trust

Many consumers don’t understand stablecoins or associate them with volatile cryptocurrencies. Merchants need to educate customers about:

• How stablecoins maintain consistent value
• Blockchain security features
• The practical benefits of using stablecoins for payments

Volatility Concerns

While stablecoins aim to maintain consistent value, stability concerns persist, especially after past incidents with certain stablecoin projects. Merchants should select reputable, fully-backed stablecoins by:

• Researching stablecoin issuers and their reserve practices
• Monitoring regulatory compliance
• Creating processes to quickly convert stablecoin payments to fiat if needed

Banking Relationships

Adopting cryptocurrency-adjacent technologies can create friction with traditional financial partners:

• Increased scrutiny from banks
• Difficulties in maintaining banking relationships
• Potential limitations on financial services access

The Role of Fintechs and Payment Platforms in Bridging the Gap

Fintechs and payment platforms are crucial in helping merchants adopt stablecoins by developing “stablecoin orchestration” systems that integrate blockchain assets with traditional payment frameworks.

• They simplify integration through API-based solutions that connect existing payment systems to blockchain networks, allowing merchants to accept stablecoins without major technical changes.
• To navigate evolving regulations like the STABLE and GENIUS Acts, these platforms monitor compliance and implement adaptive solutions, easing the regulatory burden on merchants.
• Many also offer currency conversion between stablecoins and fiat, letting merchants settle in traditional currencies and manage digital asset risks.
• Fintechs apply robust security measures from traditional finance to protect stablecoin transactions from fraud and cyber threats.

Regional Trends in Stablecoin Adoption by Merchants

Stablecoin adoption is growing differently across regions, each driven by unique factors and regulations:

Latin America

Currency instability and limited banking access drive stablecoin use, especially in eCommerce. Merchants report faster payment processing and access to previously unreachable markets.

Southeast Asia

Freelancers and small businesses use stablecoins like USDC to avoid high remittance fees and delays from traditional platforms, accelerating cash flow and growth.

North America and Europe

Regulatory clarity shapes adoption. The US is advancing bills like the STABLE and GENIUS Acts, while the EU moves forward with the MiCA framework. Institutional support, such as Mastercard’s stablecoin initiatives, boosts mainstream acceptance.

Africa

With many underbanked people, stablecoins offer financial inclusion through accessible digital payments, requiring only a smartphone and internet connection.

Merchants should tailor stablecoin payment strategies to these regional differences to maximise benefits and comply with local regulations.

How Merchants Can Start Accepting Stablecoins

Ready to join the growing trend of stablecoin adoption by merchants? Here’s a practical guide to get you started:

1. Choose stablecoins: Select stablecoins that fit your business and comply with local regulations. Consider liquidity, adoption, fees and processing times. Decide whether to hold stablecoins or convert immediately. Popular options include USDC, USDT and PYUSD.
2. Set up infrastructure: Create secure digital wallets and choose integration methods: direct blockchain, third-party processors or APIs. Implement strong security measures like multi-signature authorisation and key management.
3. Maintain compliance: Implement KYC and AML procedures for crypto transactions. Set up tax reporting and verify wallet addresses to prevent errors.
4. Process transactions: Design a simple payment interface with automatic currency conversion. Manage network fees and provide clear transaction confirmations for customers and partners.
5. Reconcile payments: Share transaction IDs and verify payments via blockchain explorers. Integrate stablecoin transactions into your accounting systems.
6. Educate customers: Provide clear guides and support to build trust. Consider incentives to encourage first-time use.

The Business Case for Getting Ahead of the Curve

Stablecoin adoption offers real advantages for forward-thinking merchants. By adding these digital assets to your payment options, you can slash transaction costs. This means substantial savings, with some scenarios showing up to 80% cost reduction.

Start exploring how stablecoin integration can transform your payment strategy and give your business an edge in the rapidly evolving digital economy before your competitors do. Partnering with experienced payment platforms like Rapyd helps you navigate these challenges and position your business at the forefront of this payment revolution.

Get Started with Rapyd.