According to the latest data from The Block, the crypto payment card industry saw significant growth in March, with total monthly transaction volume reaching $600 million. This figure represents more than a threefold increase from the $187 million recorded during the same period last year. The widespread adoption of these cards allows users to spend digital assets directly at point-of-sale terminals, bypassing cumbersome traditional bank transfers and effectively reducing payment friction for native on-chain users.
Structural Shifts in Market Share
For a long time, Tether’s USDT has been the preferred currency for crypto payment card settlements. Tether has established deep roots in emerging markets across Southeast Asia, Latin America, and Africa, where crypto cards have become a more convenient alternative in regions with relatively underdeveloped financial infrastructure.
However, USDT’s dominance is being challenged. Data shows that USDC’s market share is steadily climbing. Analysts point out that this growth is largely driven by recognition in Western markets, where local users and issuers prefer stablecoins with clear regulatory compliance and institutional backing.
Industry observers believe that the changing composition of stablecoins in payment card transactions serves as a key indicator of shifting global geographic and demographic demand. If USDC’s share continues to rise, it suggests that the crypto card user base is expanding beyond Tether’s traditional strongholds into broader regions.
The future market landscape remains fluid. Tether has publicly announced plans to launch a stablecoin product tailored for the U.S. market. Should this product gain widespread adoption domestically, it could potentially slow or even reverse USDC’s growth momentum in the region.
