Crypto card spending reached $759 million in July, marking a roughly 2.5-fold increase from $306 million recorded a year earlier, according to data cited by a16z. The figures, tracked by Paymentscan since October 2023 when monthly volume stood below $1 million, underscore the rapid expansion of stablecoin-driven payment card programs. The growth trajectory coincides with a period of intensifying institutional interest in stablecoin-based payments, including Stripe's acquisition of stablecoin platform Bridge and expanding stablecoin payout offerings from established payment processors.

Nearly 9 million purchases were made using crypto payment cards in July, up from approximately 5.2 million a year earlier. The average transaction value hovered around $86, reflecting broadening consumer adoption and a use case profile that skews toward everyday retail spending rather than large-ticket purchases.

Dollar-Backed Stablecoins Dominate Spending

The composition of networks and stablecoins underlying crypto card activity has shifted dramatically since early 2024. At that time, Gnosis handled the majority of card transactions, with Gnosis Pay linked directly to self-custodial wallets. The euro-backed stablecoin EURe represented about 88% of card volume in early 2024, primarily through Gnosis.

By July, the landscape had transformed. Optimism accounted for approximately 29% of spending, while Solana and Base each captured roughly 19%. Gnosis's share declined to about 2%, and EURe's share similarly fell to approximately 2%. The migration toward Optimism and Base—both Ethereum Layer 2 scaling networks—alongside Solana, mirrors a broader industry trend of payment activity consolidating on faster, lower-cost infrastructure.

Dollar-backed stablecoins now dominate the sector. USDC represented about 58% of card volume in July, up from roughly 48% a year earlier. USDT climbed to approximately 26%, a significant rise from about 7% over the same period. Together, the two stablecoins accounted for roughly 84% of total July crypto card spending, consistent with their commanding position across the broader stablecoin market, which exceeds $230 billion in combined market capitalization.

How Crypto Cards Work

Crypto cards enable users to spend digital assets wherever traditional card networks are accepted. At checkout, the cryptocurrency typically converts into local currency before merchants receive payment. Users are not required to hold traditional bank accounts. Depending on the program, cardholders either deposit stablecoins with card issuers or maintain them through self-custody solutions.

Most tracked crypto card spending currently runs through Visa, according to a16z. While traditional card networks continue to process trillions of dollars in monthly transactions, crypto card spending remains a smaller but growing segment. The ability of stablecoin card programs to ride existing card network rails has been a key enabler of adoption, allowing users to transact at millions of merchant locations without requiring merchant-side crypto integration.

According to a16z, stablecoin spending through payment cards forms part of a broader trend of stablecoin and tokenized asset activity. The July figures specifically cover spending tied to tracked crypto payment card programs.