Crypto Card Spending Jumps Threefold in a Year, Paymentscan Data Shows

Crypto card spending has more than tripled in the past year, according to data from Paymentscan. In July alone, spending on these cards reached $1.04 billion, with the majority of transactions involving dollar-backed stablecoins. Dollar-backed stablecoins accounted for 70% of the over 10 million tracked transactions, with USDC making up half of that volume and Tether’s USDT contributing 20.3%.

This surge in crypto card spending signifies a significant shift in consumer behavior, as stablecoins gain popularity as a means to hold digital dollars and facilitate cross-border transactions. Thomas Gregory, vice president of payments and fiat at Binance, emphasized that stablecoin-funded cards represent a crucial step in making digital assets more practical for everyday use.

Unlike traditional cryptocurrencies, these cards enable users to spend stablecoins and other assets through existing payment networks without requiring merchants to accept crypto directly. Instead, balances are converted at checkout to match the merchant’s local currency. While crypto cards aren’t replacing major card networks like Mastercard and Visa, they offer an additional method for funding cards on those networks.

PYMNTS Intelligence research revealed that despite consumer interest in using cryptocurrencies and stablecoins for purchases, factors such as acceptance issues, trust concerns, and inconsistent payment experiences are currently limiting adoption. However, the research also identified potential solutions, including linked cards, instant conversion, and modern issuer-processing systems that bridge the gap between digital assets and existing payment tools used by consumers and merchants.

Notably, around three-quarters of consumers expressed interest in opening a crypto or stablecoin wallet through an existing banking or FinTech app, indicating that banks and FinTech institutions could enhance customer engagement by integrating digital asset capabilities into trusted financial relationships.