Stablecoin Cards and the Emergence of Blockchain Retail Payments

Department of Finance, Marquette University, 1250 W Wisconsin Ave, Milwaukee, USA
* Email: david.krause@marquette.edu (D.K.)
Manuscript received April 3, 2026; accepted April 30, 2026; published May 8, 2026.

Abstract—Stablecoins, cryptocurrencies engineered to maintain a stable value relative to fiat currencies, have emerged as one of the fastest-growing segments of the digital asset ecosystem, with more than $270 billion circulating globally by early 2026. While prior research focused primarily on their role in cryptocurrency trading and decentralized finance, stablecoins are increasingly being used for real-world retail payments. This paper documents the rapid growth of stablecoin-linked payment cards and examines their implications for payment infrastructure, merchant economics, consumer fee structures, and regulatory policy. Drawing on data from industry sources, the analysis shows that monthly crypto-card transaction volumes expanded from approximately $100 million in early 2023 to more than $1.5 billion by late 2025, reaching an annualized rate exceeding $18 billion. Stablecoins, Primarily Tether (USDT) and USD Coin (USDC), now account for approximately 78 percent of crypto card transaction volume, reflecting consumer preference for price-stable digital assets, and Visa processes more than 90 percent of on-chain crypto card volume, underscoring the continued centrality of established payment networks. The paper further examines how blockchain transaction costs create potential for meaningful reductions in merchant interchange fees relative to traditional card networks, how rewards programs differ structurally from conventional card products, and the regulatory implications of stablecoin card adoption, including the U.S. GENIUS Act enacted in 2025. Although stablecoin card volumes remain modest relative to the broader payments industry, the rapid growth trajectory and involvement of major payment networks suggest that stablecoins may be transitioning from speculative trading instruments into a durable component of digital payment infrastructure.

Keywords—stablecoins, digital payments, fintech, blockchain, payment systems, cryptocurrency adoption

Cite: David Krause, "Stablecoin Cards and the Emergence of Blockchain Retail Payments," International Journal of Blockchain Technologies and Applications vol. 4, no. 1, pp. 39-45, 2026.

Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0)