Crypto Payments Aren’t Replacing Cards, They’re Backup Rail

• Nearly four in ten U.S. merchants accept crypto as a checkout payment option nationwide.
• Cards still dominate sales, while crypto provides speed and backup during failures period.
• Larger firms lead adoption as complexity slows smaller merchants despite demand growth.

Nearly four in ten U.S. merchants now accept crypto at checkout, according to PayPal and the National Cryptocurrency Association. The shift, measured in an October survey of 619 payment decision-makers, shows operational choice, not disruption. Merchants added crypto as a similar payment rail for speed, flexibility and coverage when traditional systems slow, fail or cost more.

Crypto Acceptance Grows, But Cards Still Lead

PayPal reported that 39% of U.S. merchants accept crypto at checkout, based on the joint NCA survey released Tuesday. Notably, 88% of merchants said customers asked about paying with crypto, showing steady demand. However, merchants did not frame crypto as a card replacement.

Instead, the data shows coexistence. Among merchants that already accept crypto, these payments represent 26% of total sales. That share confirms use, yet cards and cash still carry the majority of transactions.

According to PayPal, adoption is strongest among large enterprises. Fifty percent of companies earning over $500 million annually accept crypto. By comparison, 34% of small businesses and 32% of midsized firms reported acceptance.

This gap comes down to size and systems. Bigger companies can plug in new payment options without breaking how customers already pay. Smaller businesses are more hesitant, even though many customers are interested.

PayPal Vice President and General Manager of Crypto May Zabaneh said crypto payments moved beyond experimentation. She added that merchants value faster, more flexible ways to accept funds. However, merchants continue to run crypto alongside cards, not against them.

Why Merchants Treat Crypto as a Similar Rail

Merchants listed practical reasons for adding crypto, according to the survey. Forty-five percent cited faster transaction speed. Another 45% pointed to access to new customers. Security and privacy followed closely. 

Forty-one percent highlighted enhanced security features, while 40% cited greater customer privacy. These factors matter most when traditional payment rails face friction. Notably, crypto acceptance often targets specific use cases. 

Cross-border purchases, digital goods and time-sensitive transactions see higher crypto usage. These situations benefit from faster settlement and fewer intermediaries. Several major U.S. companies already accept crypto, including Starbucks, Walmart and Home Depot. 

Their adoption signals operational optionality rather than payment replacement. They keep cards central while offering crypto as an alternative path. Industry data supports this layered approach. Hospitality and travel lead adoption at 81%. 

Digital goods, gaming, luxury, and specialty retail follow at 76%. Retail and e-commerce stand at 69%. Each sector values speed and global reach. However, none removed card payments after adding crypto. The pattern reinforces crypto’s role as insurance against checkout friction.

Related: Most Indian Crypto Investors Favor Stock-Like Tax Rules

Customer Demand and the Simplicity Barrier

Customer demand continues to drive adoption. The survey found that 69% of merchants said customers want to use crypto at least monthly. Additionally, 79% believe crypto acceptance helps attract new customers.

Younger shoppers lead this demand. Merchants reported the highest interest from Millennials at 77%. Gen Z or younger followed closely at 73%. Small businesses see particularly strong Gen Z engagement. Eighty-two percent reported crypto inquiries from Gen Z customers. 

This contrasts with 67% for midsize firms and 65% for large enterprises. Despite demand, complexity limits wider rollout. Ninety percent of merchants said they would try crypto if setup matched credit card simplicity. The same share said they would adopt if the payment experience felt equally easy.

Stuart Alderoty, NCA president and Ripple’s chief legal officer, addressed this gap directly. He said interest is not the issue, but understanding remains limited. He added that trusted platforms help close that knowledge gap.

PayPal launched a U.S. crypto checkout tool in July. The tool allows merchants to accept payments in over 100 cryptocurrencies. The launch aims to reduce setup friction without changing existing checkout habits. Merchants who implemented crypto report momentum. 

Seventy-two percent of crypto-accepting merchants said their crypto sales increased over the past year. The growth supports crypto’s role as a working payment option. Crypto payments now sit beside cards, not in front of them. The survey data shows merchants value redundancy, optionality, and customer choice at checkout.

Meanwhile, U.S. merchants added crypto as a secondary payment rail and not a replacement. PayPal and NCA data shows steady use, driven by customer demand and operational flexibility. Cards remain central, while crypto provides coverage when speed, access or simplicity matters most.