stablecoins account for 70% of cryptocurrency card transactions, with…

Why is encryption card consumption growing so rapidly?

Over the past year, cryptocard consumption has increased approximately 2.5 times, reaching approximately US$759 million in July. U.S. dollar-backed stablecoins fund most transactions, and consumers are increasingly using the cards to buy groceries, transportation, takeaways and other daily necessities. According to Paymentscan data cited by venture capital firm a16z, nearly 9 million transactions were tracked that month, of which USDC and USDT combined accounted for approximately 84% of activity. USDC accounted for about 58% of trading volume in July, up from about 48% a year ago, while USDT's share climbed from about 7% to about 26%. The average payment amount also increased to about $86 from $59 last year. The combination of an increase in the number of transactions and an increase in the amount of individual purchases suggests that crypto cards are shifting from occasional withdrawal or redemption tools to more routine consumption tools. Thomas Gregory, vice president of Binance Payments and Fiat Currency, said: "The real criterion for measuring the progress of cryptocurrencies is not only how many people hold digital assets, but also how important these assets can play in daily life." Crypto cards allow users to use stablecoins or other digital assets to fund consumption, while merchants continue to receive local currency through existing payment networks. Depending on the product, funds may be held at the card issuer or in a self-managed wallet until redemption at checkout.

Are stablecoins replacing Visa and MasterCard?

Consumption growth does not mean that stablecoins are replacing traditional card networks. In many cases, stablecoins are becoming another source of funding, while these cards still run through Visa or MasterCard infrastructure. Visa said in June that more than 130 stablecoin-linked card programs were running in more than 50 countries. StraitsX, which helps crypto companies launch Visa-linked cards, reported a 40-fold increase in transaction volume on its card infrastructure between the fourth quarter of 2024 and the fourth quarter of 2025. For users, the attraction is that stablecoins can be used both as digital dollar balances and can be consumed at merchants that do not have direct cryptocurrency payment systems. This allows consumers to retain dollar-linked assets until the point of sale without having to first redeem the balance to a bank account. "Increasingly, stablecoins are doing two tasks simultaneously: helping people preserve their value and then letting them use the same balance for daily expenses," said Eduardo Prota, general manager of Oobit Brazil and head of Latin America.

Investor revelation

The application of stablecoins is shifting from holding and transferring to making payments. For card issuers, the opportunity is not to replace existing payment networks, but to make stablecoin balances expendable through the infrastructure already in use by consumers and merchants.

What do encryption card users actually buy?

Carrier data suggests that growth is increasingly associated with ordinary consumer spending rather than large-scale crypto conversions. Oobit said active users in Brazil conduct about 20 transactions per month, spending a total of about $400, with groceries accounting for 35% of its reported regional activity. In Argentina, USDT funds 72% of Oobit's payments, while food purchases account for 41% of transactions. "Increasingly, stablecoins are doing two tasks simultaneously: helping people preserve their value and then letting them use the same balance for daily expenses," said Eduardo Prota, general manager of Oobit Brazil and head of Latin America. Binance reported that the average number of users of its Brazilian cards increased by 53% from the release quarter to the second quarter of 2026, and the average transaction volume increased by 80%. Common uses include taxis, takeout, grocery, restaurants and online subscriptions. Kraken also reported similar behavior. Weekly payments on its Krak Card have more than doubled in the past year to 8.3 payments per user. Retail and store purchases accounted for 59.3% of expenditures, while half of transactions were funded by non-euro or pound denominated assets.

What is the concentration of the encryption card market?

There is an important limitation to the overall growth data: tracked activity remains concentrated among a few providers. RedotPay generated $395.1 million in transaction volume in July, EtherFi recorded $100.3 million, and KAST contributed $89.6 million. These three platforms together account for approximately 77% of tracking activity. Paymentscan's data on RedotPay is self-reported rather than observed directly on the chain. EtherFi CEO Mike Silagadze said its $100.3 million represents card purchases, excluding approximately $30 million in fiat transfers. In July 2025, two months after the product was launched, purchases were still less than US$10 million. At the same time, RedotPay said its customer base grew by more than 33% to more than 8 million in six months. Growth also appears to be stronger in some lower-revenue markets. StraitsX reported that between March 2025 and February 2026, total transaction volume in lower GDP markets increased by approximately 600%, while higher GDP markets increased by 150%, with food and retail being the main consumer categories. On major platforms, the use of stablecoins is not so concentrated. Coinbase said USDC accounts for about 16% of its total credit and debit card transactions, although customers hold about $20 billion of USDC in Coinbase products, a year-on-year increase of 44%. This difference suggests that crypto-native card providers may see stablecoins dominate consumption, while larger financial platforms hold stablecoins in value much higher than the amount consumed by users. The next test for the industry is whether daily transaction growth can expand beyond a few providers and become a lasting use case for mainstream payment products.