Crypto Payments: How to Unlock E-Commerce Growth in 2026

I. Early Challenges: Technological Idealism Clashes with Business Reality

From 2013 to 2017, cryptocurrency payments did indeed have a period of popularity. Industry giants like Dell and Expedia all ventured into the market, hoping to use Bitcoin to solve the "payback risk" and cross-border delays in traditional payments. But reality quickly dealt a blow to this idealism, with problems emerging one after another:

The most prominent was the technological bottleneck. The 2017 Bitcoin scaling controversy directly led to network congestion, with single transaction fees soaring to $20, making small payments completely uneconomical—if the transaction fee for a small purchase costing tens of dollars was higher than the product itself, who would want to use it? Expedia's later exit due to "insufficient transaction volume" was a microcosm of the early failures.

Another issue was the high barrier to user experience. Private key management and wallet operation were far too complex for ordinary users, not to mention the rollercoaster-like price fluctuations of cryptocurrencies, with daily swings exceeding 10% being commonplace, daunting for both merchants and consumers. According to a 2023 Chainalysis report, although over 420 million people worldwide held cryptocurrency, less than 5% of these transactions were actually used for payments—a figure that speaks volumes.

A deeper dive into the Expedia case reveals that its failure wasn't due to outdated technology, but rather its inability to resolve the "chicken or the egg" dilemma: insufficient user base meant merchants lacked motivation to integrate; limited payment scenarios further discouraged user adoption. The most crucial lesson from this phase is that the success of a payment tool depends not only on technological prowess but also on a mature ecosystem.

II. Turning Point Insights: How Can Network Effects Break the "Currency Substitution" Impasse?

The potential for a turnaround in cryptocurrency payments hinges on a renewed understanding of "network effects." The example of "ramen replacing tobacco as currency" in US prisons offers key insights:

First, demand drives substitution. With tobacco banned, ramen, fulfilling the core need of "replenishing calories," naturally became the new monetary equivalent. This reveals a fundamental principle: for a new currency to gain a foothold, it must provide essential value that the old system cannot cover.

Second, a solid user base is essential. The cases of Rakuten in Japan and CU convenience stores in South Korea vividly demonstrate this point: for cryptocurrency payments to become widespread, a large existing user base is essential. Rakuten, as a leading domestic e-commerce platform, recognized the potential of cryptocurrency as early as 2017. At that time, cryptocurrency ownership in Japan was already gradually increasing, and by 2020, when it officially integrated cryptocurrency payments, there were approximately 3 million holders in Japan (representing 2.4% of the total population). Rakuten did not blindly roll out cryptocurrency across the board; instead, it first opened payments for virtual goods (such as e-books and membership services) and small-value physical goods on its platform. Users could directly settle payments by linking their cryptocurrency wallets, without additional exchange steps. This move increased Rakuten's conversion rate among its younger user base by 8%, especially for users purchasing overseas goods through cross-border e-commerce, as the elimination of currency conversion fees and cross-border transaction fees led to a 12% increase in repurchase rate.

The approach taken by CU convenience stores in South Korea is more down-to-earth and relatable. As a major South Korean chain with over 12,000 stores, CU announced its integration with cryptocurrency payments in 2021. At that time, South Korea already had over 5 million cryptocurrency trading accounts, primarily among young people aged 20-35—precisely the core customer base of convenience stores. CU didn't limit itself to a single currency but supported stablecoins pegged to the Korean Won and mainstream cryptocurrencies. Customers could directly scan a code to pay for snacks, daily necessities, and even utility bills. To lower the barrier to entry, CU partnered with a local South Korean cryptocurrency exchange to launch a "pay and get cashback" program, earning 1%-3% platform points after payment, which could be redeemed for future purchases. Data shows that after integrating cryptocurrency payments, CU convenience stores saw a 15% increase in visit frequency among its young customer base, a 7% increase in average daily sales per store, and an increase in the percentage of cross-border tourists who previously avoided purchases due to payment inconvenience, rising from 1.2% to 3.5%.

The logic behind these cases is simple: when the user base is large enough, the motivation for merchants to integrate is no longer "trying it out," but rather "capturing existing users." Merchants gradually discovered that instead of requiring users to convert cryptocurrency into fiat currency before making a purchase, it was more efficient to accept payments directly. This reduced the decision-making cost for users and allowed them to attract new customers through differentiated payment methods. A 2023 study by the Bank for International Settlements (BIS) corroborated this: in countries where cryptocurrency ownership exceeded 5%, e-commerce payment adoption rates increased by an average of three times. This demonstrates that once the user base surpasses a certain threshold, the expansion of payment scenarios grows exponentially.

III. Stablecoins: A Double-Edged Sword to Break the Volatility Curse

The emergence of stablecoins provided a breakthrough for cryptocurrency payments, balancing technological advantages with price stability. However, its development has not been smooth, facing two major challenges:

First, centralized risk. Mainstream stablecoins like USDT and USDC operate on a fiat-backed model, essentially reintroducing a "trust crisis." When Silicon Valley Bank collapsed in 2023, USDC was temporarily de-pegged due to a freeze on its reserves, immediately exposing the fragility of centralized structures—the promised stability still depends on the whims of centralized institutions.

Secondly, the technology is not mature enough. Algorithmic stablecoins like DAI, while aiming for decentralization, rely on over-collateralization mechanisms, making them susceptible to a "death spiral" under extreme market volatility. A 2024 MIT research report pointed out that no decentralized stablecoin currently achieves a balance between scale, stability, and security.

However, some innovative ideas are worth exploring. The well-known cryptocurrency industry blog CoinDesk Insights, in its 2023 report "A New Paradigm for Retail Payments," proposed the idea of ​​"retailer network-backed stablecoins," which might be a viable path. Such stablecoins do not rely on a single institution or fiat currency reserves, but are jointly issued by an alliance of e-commerce platforms, suppliers, and offline retailers within a specific region. Their value is backed by tangible assets such as inventory and accounts receivable within the alliance, with each unit of stablecoin issued being backed by corresponding goods or assets. For example, if Southeast Asian e-commerce platform Lazada could partner with local suppliers of core categories like beauty, baby products, and home goods to issue a regional stablecoin specifically for the Southeast Asian market, users could directly redeem the corresponding goods when shopping on Lazada using this stablecoin. Suppliers could also quickly settle payments using the stablecoin, eliminating the need to wait for cross-border transfers. This model is somewhat similar to the "wildcat banks" of 19th-century America, but relying on digital networks, it can achieve a more efficient consensus mechanism and asset clearing, reducing the trust risks of centralized stablecoins, avoiding the technical vulnerabilities of algorithmic stablecoins, and accurately matching local payment needs.

IV. Future Outlook: Diverse Ecosystem and Technological Integration

The future of cryptocurrency payments is not about "replacing" traditional payment systems, but rather about forming a complementary, scenario-based landscape:

Everyday payments will be dominated by stablecoins, especially suitable for small-value cross-border transactions in emerging markets—such as e-wallet users in Southeast Asia. According to World Bank data, a 1% reduction in payment fees in these markets can increase user penetration by 5%, which is a significant incremental increase.

CBDCs (Central Bank Digital Currencies) will develop in a complementary manner with stablecoins. China's digital yuan (e-CNY) has already been piloted in cross-border e-commerce. Its compliance, combined with the efficiency of stablecoins, may create a dual-track system of "regulation + innovation," upholding compliance while allowing for technological innovation.

Technological iteration will also accelerate user experience upgrades. Zero-knowledge proof technologies (such as zkRollup) can increase transaction speeds to tens of thousands of transactions per second while protecting user privacy; cross-chain technologies (such as the Cosmos ecosystem) can achieve seamless settlement of multi-chain assets, further lowering the barrier to entry for users—in the future, ordinary users may find paying with cryptocurrency as simple as using Alipay or WeChat Pay.

The African cross-border e-commerce platform Jumia has begun accepting stablecoin payments, primarily to address the issue of insufficient local bank coverage. Its Q1 2024 financial report shows that after integrating stablecoin payments, user order abandonment rate decreased by 15%, and inventory turnover increased by 20%. This indicates that in certain specific scenarios, cryptocurrency payments have transformed from an "optional solution" into a "necessary infrastructure."

Conclusion: A Paradigm Shift from "Payment Tool" to "Growth Engine"

The true value of cryptocurrency payments lies not in the disruptive nature of the technology itself, but in its potential to reshape business logic. When payment costs drop from 5% to 0.1%, and settlement times shrink from 3 days to 3 seconds, businesses gain more than just increased efficiency; they reshape market boundaries—for example, Latin American users can directly purchase Asian goods using stablecoins, eliminating the need for multiple currency conversions, thus opening up entirely new market opportunities.

For e-commerce companies, the key now isn't "whether to integrate," but rather "how to strategically position themselves":

In the short term, they can conduct trials, testing stablecoin payments in emerging markets to calculate cost savings and user conversion rate improvements, letting the data speak for itself.

In the medium term, they need to integrate, partnering with licensed platforms to upgrade their payment systems into "programmable cash flow" systems, automating supply chain settlements—such as automatic payment processing and one-click cross-border settlements, saving significant manpower and time costs.

In the long term, they need to participate in ecosystem building, joining industry alliances and promoting standardized protocols (such as the ERC-20 stablecoin standard). This will reduce compliance costs and inter-company collaboration costs, making the entire industry more standardized.

Just as internet adoption wasn't instantaneous, the maturity of cryptocurrency payments will also go through a cycle of "technology iteration - user accumulation - ecosystem explosion." However, historical experience tells us that true transformation often begins in peripheral scenarios, ultimately achieving breakthroughs through the resonance of infrastructure. For forward-thinking companies, now is a crucial window to position themselves for the next decade of growth; don't miss it.