Nearly 40% of US Merchants Now Accept Crypto at Checkout, PayPal Reports

Cryptocurrency is gaining ground in U.S. commerce, with nearly 40% of merchants now accepting crypto as a payment method at checkout. This data comes from a recent survey conducted by PayPal and the National Cryptocurrency Association (NCA), which highlights the role of customer demand in driving adoption.

Customer inquiries about crypto payments have surged, with 88% of surveyed merchants noting such requests from consumers. Over two-thirds of merchants (69%) report that customers seek to use crypto at least once a month. This indicates a growing demand that businesses are increasingly looking to accommodate according to recent findings.

The survey also reveals that 84% of merchants expect crypto payments to become common within the next five years. More than half of large enterprises, which generate over $500 million in annual revenue, already accept crypto, compared to 34% of small businesses and 32% of midsize companies. This suggests that larger companies are leading the charge in mainstream adoption.

Merchants cite several benefits to accepting crypto, including faster transaction speeds, enhanced security, and the ability to attract new customers. These advantages are particularly appealing in industries such as hospitality, digital goods, and e-commerce, where the demand for crypto payments is most pronounced.

Despite the momentum, challenges remain. The study shows that 90% of merchants would consider adopting crypto if the setup process were as straightforward as accepting credit cards. Simplicity and usability are key barriers to wider adoption, according to the findings.

Why Did This Happen?

The shift toward crypto payments is being driven by evolving customer preferences and the desire for faster, more flexible payment options. PayPal's Vice President May Zabaneh noted that once businesses start accepting crypto, they often see tangible value in terms of customer engagement and operational efficiency.

The National Cryptocurrency Association's President, Stu Alderoty, emphasized that understanding remains the biggest hurdle. While there is strong interest in crypto, many people still struggle to see how it fits into their daily lives. This highlights the need for greater education and clearer integration solutions.

What Are Analysts Watching Next?

Industry observers are monitoring how merchants adapt to new payment tools and whether crypto will become a standard payment method. For example, Bcon Global recently launched a non-custodial crypto payment gateway, offering businesses a new way to accept crypto without relying on intermediaries. This development could further lower the barriers to adoption.

Additionally, regulatory shifts and technological advancements will likely shape the next phase of crypto's integration into mainstream commerce. The survey also pointed to the role of younger demographics, particularly Millennials and Gen Z, as key drivers of adoption. Their preference for digital-native payment methods is expected to accelerate the trend.

Merchants across different sectors are exploring crypto as a way to streamline operations, reduce fees, and tap into new markets. The hospitality and travel industry, for instance, is seeing the highest adoption rates, with 81% of businesses in that sector already accepting crypto. This reflects the sector's emphasis on global reach and digital convenience.

What Does This Mean for Investors?

The growing merchant acceptance of crypto payments signals a shift in how digital assets are being used beyond their traditional role as investments. This could translate into increased transaction volumes and greater adoption of crypto infrastructure services, benefiting companies like PayPal and others in the digital payments space.

Investors are also watching how regulatory developments, such as the GENIUS Act and broader institutional adoption of crypto, impact merchant behavior. These changes could create new opportunities for firms that offer custody, settlement, and transaction services tailored to institutional clients.

For now, the focus remains on usability and education. As more businesses see the value in accepting crypto, the ecosystem is likely to evolve toward more streamlined and user-friendly solutions. The next five years will be critical in determining whether crypto becomes a widely accepted form of payment in everyday commerce.