Encryption Payment Development Trends: Discussing the "Last Mile" Dilemma

The encryption payment sector is rapidly developing, with payment methods centered around stablecoins entering the practical application stage. According to a 2024 report from a certain data platform, the platform processed over 1.67 million encryption payment transactions, of which 35.5% were completed using stablecoins. Meanwhile, traditional payment giants are also making their way into this field.

However, despite the maturity of encryption payment technology, there are still challenges in large-scale adoption. Predictions show that by 2026, the number of encryption payment users in the United States will grow by 82%, but the adoption rate will only reach 39.1%. Globally, it is expected that only 2.6% of users will adopt encryption payments. Data also shows that 21% of orders in the United States are paid with cryptocurrency, while the rates in Germany and the UK are 6-6.5% and 5.2-5.7%, respectively, with emerging markets like Nigeria and Ukraine having rates of less than 1%.

Encryption Payment Industry Chain Current Situation

To achieve a seamless and convenient encryption payment experience, a complete infrastructure support is needed, covering asset issuance, payment transfer, user access, and merchant terminals.

Asset Issuance

In the payment sector, stablecoins have become the main payment medium due to their price stability. Currently, major stablecoin issuers are actively expanding partnerships with payment gateways, cross-border settlement platforms, and traditional financial institutions. For example, a stablecoin issuer has partnered with a payment giant to integrate its stablecoin into the cross-border settlement network, covering approximately 190 countries.

payment transfer

The payment intermediary connects on-chain assets and the off-chain consumption system. Some native encryption payment intermediaries focus on bridging on-chain assets with fiat currency systems, while traditional payment giants are also accelerating their布局. For example, a certain payment company acquired a stablecoin infrastructure platform for $1.1 billion, officially entering the on-chain settlement field.

User Entry

In the early days, encryption debit cards were the main payment gateway, converting on-chain assets into fiat account balances. With the evolution of wallet application functions, on-chain wallets have gradually become the new user entry point. Mainstream wallets not only manage user assets but also enable users to directly use on-chain assets for consumption by integrating payment APIs.

Merchant Terminal

Merchant terminals are key to the widespread adoption of encryption payments. In recent years, with technological advancements and improvements in risk management, merchants' willingness to accept encryption payments has increased. In 2024, the number of merchants accepting encryption payments globally reached 12,834, a 50% increase from the previous year. Among them, Europe leads with 5,677 merchants, while a South American country ranks first with 1,292 merchants.

The "Last Mile" Problem

Although technically it is possible to achieve fast settlement, the application of encryption payments in actual consumption scenarios still faces many challenges:

1. High integration costs: Merchants need to develop repeatedly for different wallets and blockchain environments, increasing the difficulty and cost of integration.

2. Long settlement period: Although on-chain payments theoretically support fast clearing, in practice, they still rely on traditional payment infrastructure, leading to delays in funds arriving.

3. Ecological Islands: The trend of fragmentation in a multi-chain environment increases the complexity of user operations and affects the smoothness of payments.

4. High volatility: Even when using stablecoins, the risk of decoupling under extreme market conditions still causes concerns for merchants.

Future Outlook

The large-scale adoption of encryption payments requires a "usability leap." Currently, the foundation for this leap is gradually being improved:

• The regulatory framework for stablecoins is gradually becoming clear.
• The standardization of global payment interfaces is being promoted.
• Cross-chain interoperability protocols are breaking down ecological fragmentation.

In the future, whether encryption payments can successfully overcome the "last mile" depends on providing merchants and users with a usage experience that requires "no understanding of blockchain." Only when encryption assets become "ordinary currency" in daily consumption can encryption payments truly achieve large-scale adoption.

This not only requires technical openness, but also a deep understanding and continuous optimization of "scenario adaptation", "merchant trust", and "user experience". Only by bridging this "last mile" can the era of large-scale encryption payments truly arrive.