Stablecoins Slash Payment Friction as E-Commerce Goes Crypto-Native

Forget Visa chargebacks—Tether and USDC are quietly eating payment processors’ lunch. Merchants now pocket 98% of transactions instead of coughing up 3% to legacy rails.

Subheader: The 24/7 settlement revolution

No more waiting for banks to open Monday morning. Stablecoin settlements finalize before the customer even closes their browser tab—take that, SWIFT.

Subheader: Volatility? What volatility?

While Bitcoin maximalists argue over lightning networks, dollar-pegged tokens are doing the boring work of actually moving value. Even Walmart’s testing checkout flows with Circle.

Closer: The real question isn’t if stablecoins will dominate online payments—it’s whether traditional finance will admit defeat before or after their Q2 earnings crater. (Bonus jab: Goldman Sachs will inevitably launch ’GS Coin’ just in time for the next bear market.)

The place cryptocurrency takes in today’s e-commerce

There are some platforms which utilize digital assets as the means for payments. We can see by a recentthat the e-commerce and retail sector has the highest number of companies offering crypto payments, totaling 76 businesses that successfully leverage this technology. In fact, the integration of cryptocurrencies into business processes is already noticeable, though it’s not yet mainstream, which indicates that crypto adoption in e-commerce is only in its early stages.

Although the adoption of cryptocurrencies by e-commerce businesses is only emerging, companies with a global customer base have already started to reap the benefits of crypto transactions. Still, it primarily refers to large-scale companies, as, making over $1 billion yearly, are already accepting cryptocurrencies.

Conversely, as for mid-sized retailers, which make from $250 million to $1 billion, only 23% have adopted crypto payments. Anyway, they easily accept payments from international customers without the need to deal with exchange rates, long transaction processing, and high fees, unlike traditional payment methods.

For instance, one of the e-commerce platforms, Shopify, actively integrates crypto payments and allows merchants to accept digital transactions from customers worldwide via global payment gateways. And given the positive sentiments of governments lately, such cases are only expected to increase.

Nonetheless, there are some challenges businesses have to face — the value of some cryptocurrencies can fluctuate significantly over short periods of time, which is a major concern for merchants due to the inability to establish a stable pricing policy. In this regard, stablecoins can be considered as a way out for companies in the e-commerce sector.

Stablecoins — the most viable option for e-commerce?

Stablecoins are among the best choices for e-commerce companies to adopt because they both preserve the benefits of crypto payments and offset volatility risks. Apart from risk mitigation, stablecoins are also more transparent and secure to the public eye, which increases trust. For example, Circle, the issuer of USDC, is obliged tomonthly attestation reports performed by independent accounting firms, which enhances users’ confidence in its transparency.

The potential for widespread adoption is also dictated by ongoing regulatory revisions, which play a significant role in establishing clear guidelines. For instance, recently, the U.S. House of Representativesan updated version of the STABLE Act, substantially revising the draft from the previous month.

The new version aims to support stablecoins by introducing new compliance mechanisms, extending regulatory oversight, and possibly creating a federal framework for payment stablecoin issuance. So, as regulations take shape, e-commerce companies may become the first to offer stablecoins as a means of payment to stay ahead of the market, and it could significantly impact the sector’s growth and attract considerable attention.

Other than that, stablecoins can be integrated within existing payment services — for example, PayPal has alreadyto adopt cryptocurrencies as a part of its services, and we most probably will not have to wait long for others to follow the trend. It is mainly because  businesses shouldn’t rebuild their payment infrastructure to successfully implement stablecoins — quite easy to do. Additionally, by using stablecoins through such robust platforms with advanced cybersecurity mechanisms, businesses could reduce risks and prevent fraud.

Finally, stablecoins can open access to new markets for consumers in regions with limited banking infrastructure. In 2021, in its, the European Parliament underscored that stablecoins may positively impact global trade, facilitate the development of global payment arrangements, and enhance financial inclusion both in developed and developing countries. Hence, this confirms that adoption of stablecoins by e-commerce businesses could play a crucial role in expanding their reach.

Bottom Line

The integration of crypto payments in e-commerce shouldn’t be seen as a trend pursuit, but rather as a strategic move that may transform digital trading. We can expect that within 5–10 years, stablecoins could become a standard for cross-border payments and change the way businesses and consumers engage in digital transactions.  

Stablecoins, being consistent and asset-backed, offer businesses protection from excessive volatility, seamless integration with existing payment services and expansion in regions with limited financial infrastructure. However, companies should consider robust security mechanisms, transaction management, and adherence to regulatory compliance to leverage this payment method effectively.