PayPal Study Highlights Growth of Cryptocurrency Payments in the US

A new survey by PayPal and the National Cryptocurrency Association (NCA) shows rising adoption of cryptocurrency payments among U.S. merchants. Nearly 40% of merchants now accept crypto at checkout, with 84% expecting it to become commonplace within five years. This growing trend reflects increased customer demand and the potential for crypto to enhance business operations.

The survey highlights customer inquiries as a key driver of adoption. Eighty-eight percent of merchants report receiving questions about crypto payments, with 69% noting these inquiries at least monthly. For merchants already accepting crypto, transactions now account for 26% of total sales, with 72% reporting an increase in crypto sales over the past year. These figures underscore the transition of crypto from a niche option to a practical payment tool.

Adoption is highest among larger enterprises, with 50% of companies earning more than $500 million annually accepting crypto. This is compared to 34% of small businesses and 32% of midsize firms. Industries such as hospitality and travel (81%), digital goods and gaming (76%), and retail and e-commerce (69%) are leading the charge. These sectors benefit from crypto's speed, global reach, and appeal to younger, tech-savvy consumers.

Why Did This Happen?

Customer demand is the primary reason for the rise in crypto payments. Merchants report that 79% believe accepting crypto helps attract new customers. The convenience and perceived flexibility of crypto transactions are driving this shift. Additionally, younger generations, particularly Millennials and Gen Z, are more likely to express interest in using crypto for purchases.

The survey also highlights the role of larger businesses in leading crypto adoption. These firms are better positioned to integrate new technologies and meet evolving customer expectations. For example, over a quarter of total sales in some industries are now conducted via crypto, indicating a significant shift in consumer behavior and merchant strategy.

How Did Markets React?

The survey results have had mixed implications for PayPal's stock. While merchant adoption of crypto is seen as a positive signal for future payments volume, the company faces challenges ahead of its Q4 earnings on Feb. 3. Analysts from firms such as Rothschild/Redburn and Truist have downgraded PayPal, citing difficult volume comparisons and competitive pressures. Despite this, some analysts remain bullish, arguing that 2026 could be a breakout year for PayPal if its crypto initiatives scale effectively.

The broader crypto market is also affected by policy discussions. A recent White House meeting failed to resolve disagreements over stablecoin yields, with no agreement reached on whether crypto exchanges can offer rewards on stablecoins. This uncertainty has contributed to a decline in crypto prices, with Bitcoin down nearly 40% from its peak in October 2025.

What Are Analysts Watching Next?

Simplicity and usability remain key barriers to widespread crypto adoption. Ninety percent of merchants would consider accepting crypto if the process were as straightforward as traditional card payments. This highlights the need for platforms like PayPal to continue refining the user experience and providing educational resources to help businesses understand the value proposition of crypto payments.

Policy developments will also shape the future of crypto adoption. The White House aims to finalize market-structure legislation by the end of February, which will determine the regulatory framework for stablecoin yields and other crypto-related activities. A clear regulatory path could provide much-needed stability for businesses considering crypto as a payment option.

Industry leaders emphasize the importance of partnerships in driving adoption. Stu Alderoty, President of the NCA, notes that working with trusted platforms like PayPal is essential for closing the knowledge gap and demonstrating the benefits of crypto. As the ecosystem continues to evolve, the role of technology providers, regulators, and industry groups will be critical in determining the pace and scale of crypto's integration into mainstream commerce.