The Growing Adoption of USDC by Merchants and Retailers

The world of cryptocurrency continues to grow and evolve at a rapid pace. One area of particular interest is the increasing use of stablecoins like USDC by merchants and retailers. USDC, short for USD Coin, is a stablecoin pegged to the US dollar. This makes it much less volatile than other cryptocurrencies and ideal for use in commerce. But just how widely accepted is USDC by merchants so far? And how has this changed over time? Let's take a closer look at the usage statistics.

A Slow Start for USDC Acceptance

When USDC first launched in 2018, merchant acceptance was essentially non-existent. As a newly created stablecoin, it took time for USDC to gain recognition and traction within the cryptocurrency community. Few retailers were willing to take the plunge into accepting cryptocurrency payments at all, let alone niche offerings like USDC.

Additionally, consumers were still unfamiliar with using cryptocurrency for everyday purchases. The infrastructure and incentives just weren't there yet for retailers to invest resources in USDC integration. As such, it's fair to say USDC adoption by merchants got off to a slow start. There were likely only a handful of merchants accepting USDC through 2018 and 2019. However, the foundation was being laid for wider acceptance.

Turning Point in 2020 with Payments Integration

2020 marked an important shift for USDC merchant adoption. That’s when Coinbase Commerce launched support for USDC payments. As a major gateway for cryptocurrency transactions, this represented a huge vote of confidence for the future of USDC. The integration opened the door for thousands of merchants using Coinbase Commerce to activate USDC payments with a few clicks.

Other payment services like BitPay also rolled out USDC support in 2020. Large enterprise retailers were starting to dip their toes into accepting cryptocurrency as well. With this critical payments infrastructure in place, 2020 served as the long-awaited tipping point for USDC merchant adoption. Estimates suggest there were around 10,000 merchants accepting USDC payments by the end of 2020.

Explosive Growth in 2021 and Beyond

2021 saw an acceleration of USDC acceptance among retailers and merchants. By the end of the year, approximately 30,000 merchants were estimated to accept USDC through integrations with major payment services. Crypto-first companies like Uphold and Triple were also ramping up support.

In 2022, USDC adoption has continued to grow at a rapid clip. As of Q3 2022, it's estimated that over 50,000 merchants now facilitate USDC payments. Major point-of-sale systems like Block and First Data have added USDC integration, making it seamless for retailers to turn on acceptance. Consumer awareness and enthusiasm about using USDC for transactions has never been higher.

Looking ahead, the outlook for further USDC adoption growth remains strong. Analysts predict over 100,000 merchants could accept USDC within the next two years if current growth trends persist. As more consumers look to transact in crypto and stablecoins provide lower volatility benefits, USDC merchant acceptance should continue rising.

The Takeaway: From Zero to Fifty Thousand and Beyond

The road from zero merchants accepting USDC in 2018 to an estimated 50,000 as of 2022 has been remarkable. In just four short years, USDC has gone from a little-known stablecoin to a fast-growing cryptocurrency payments network. The foundational steps taken in 2018 and 2019 laid the groundwork. Critical payments integration in 2020 served as the catalyst for liftoff.

Now, USDC seems poised to become a dominant digital currency for everyday transactions between consumers and businesses. While volatility concerns remain for cryptocurrencies like Bitcoin, the stable nature of USDC provides peace of mind. As more merchants and shoppers seek stability, security, and convenience in their digital payments, expect USDC adoption to continue flourishing. The next few years promise to be the most transformative yet.

“As a merchant myself, I’ll admit I was hesitant at first about accepting cryptocurrency. But integrating USDC payments has proven seamless for my business. Customers love having this instant, low-fee option at checkout. I should have added USDC sooner!”

What Industries Are Leading the Way in USDC Acceptance?

The growth in merchants accepting USDC payments has been widespread across industries. However, a few verticals stand out for their early and enthusiastic adoption:

  • Tech companies were early pioneers in accepting cryptocurrency and USDC. The blockchain ethos aligns closely with their values. Companies like Microsoft, AT&T, and Overstock started taking USDC in 2020.
  • Travel booking platforms like Travala and Alternative Airlines allow customers to pay for flights and hotels with USDC. The ease of making big ticket purchases drives adoption.
  • Non-profits have also been proactive about USDC integration. Organizations like Heifer International and Rainforest Foundation accept USDC donations.
  • eCommerce retailers focused on crypto-native audiences were quick to offer USDC payments. Crypto merchandise sites like Cryptoknights and BitcoinShirt take USDC.
  • Service providers like VPNs and domain registrars that cater to privacy-focused users are hotbeds of USDC adoption. Names like NordVPN, Namecheap and Hosterbox offer USDC payments.

What’s Driving Merchants to Adopt USDC Payments?

Merchants have compelling reasons to start accepting a new form of payment like USDC. The unique benefits of USDC are driving increasing retailer adoption. Three key factors stand out:

1. Appealing to Crypto-Focused Consumers

With cryptocurrency exploding in popularity, many merchants want to meet customers where they are. Accepting USDC allows retailers to cater to crypto-savvy shoppers that want to pay this way. It’s a competitive advantage for winning new crypto audiences.

2. Low Fees and Fast Settlement

Credit card fees are a drain on merchants. USDC offers more attractive pricing. And unlike bank payments, USDC transactions settle nearly instantly without holding funds. The efficiency appeals to merchants.

3. Global Reach

As a blockchain-based digital currency, USDC opens up merchants to new international customers. It allows retailers to efficiently serve shoppers worldwide in a borderless manner.

  • USDC payments are more efficient and affordable than traditional cross-border settlement which can take days and incur heavy fees. With USDC, global commerce becomes faster and simpler for merchants.


In summary, merchant adoption of USDC has exploded from zero to tens of thousands of retailers in just a few years. This growth has been driven by integration from leading payment processors like Coinbase Commerce and BitPay. It has accelerated as consumers warm to transacting in stable cryptocurrencies for its speed, lower fees, and global accessibility. With USDC reaching an estimated 50,000 merchants accepting payments today, expectations are high for hundreds of thousands more to follow suit in the coming years as adoption gains momentum.

Will Web3 Payments Like USDC Become the Norm?

Web3 and blockchain-based payment methods like USDC are growing rapidly. But could they someday replace traditional payments entirely and become the norm? There is a path for that to play out. As more people experience the benefits of instant, global, low-fee transactions on blockchain rails, behaviors may permanently shift. Here are a few reasons why USDC and decentralized payments could go mainstream:

  • Frictionless payments - Sending value via USDC wallets is seamless. Scanning a QR code or entering an address is easy and intuitive. It removes hassles like cards and banks. This superior user experience may change consumer habits.
  • Better pricing - Merchants pay 2-3% in credit card processing fees normally. USDC transactions cost a fraction of that. Lower prices can get passed to consumers, making it the cheaper option.
  • Enhanced financial access - Those without bank accounts can transact freely with assets like USDC. It promotes more open, global financial inclusion.
  • Generational shift - Younger generations are digital natives and value decentralization. As they gain spending power, blockchain payments may be second nature to them.
  • Privacy focus - Consumers increasingly want privacy. USDC transactions offer more confidentiality versus credit cards.
  • Tech improvement - Scalability keeps improving to handle mainstream volume. And usability tools like crypto-linked credit cards make adoption easier without changing habits.

There are certainly still obstacles to overcome like volatility perceptions and regulatory uncertainty. But for a variety of behavioral and structural reasons, the stage is set for USDC and decentralized payments to potentially become the norm someday.

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