Stablecoins at the Checkout: How Mobile-First Markets Are Embracing a New Way to Pay

When you tap your card or phone to pay for a coffee, a lot happens in the blink of an eye. A tiny point-of-sale (PoS) terminal beeps approval, but behind the scenes, a complex dance unfolds between your bank, the merchant’s bank, and the card network. In mobile-first regions like Africa and Asia, this familiar routine is on the cusp of transformation. A new contender – stablecoins – is stepping up to the register, promising faster, cheaper payments that resonate with a young, tech-savvy generation. But how do stablecoin payments actually work at the checkout, and what do they mean for the traditional players?

How Point-of-Sale Payments Work Today

Walk into any store today, and you’ll likely see a card reader ready to accept your Visa or Mastercard. From the customer’s perspective, it’s simple: swipe, dip, or tap – payment accepted. But under the hood, there’s a high-speed relay race. First, the PoS terminal sends your transaction details to the merchant’s acquiring bank or payment processor. This processor routes the request through a card network (like Visa or Mastercard), which then contacts your card’s issuing bank for authorization. If you have sufficient funds or credit, the issuer gives an approval code, which zooms back through the network to the merchant’s terminal, lighting up a “Payment Approved” message. All of this happens in seconds, ensuring your shopping is uninterrupted. It’s a clever system built on decades of payments infrastructure and trust.

However, the journey isn’t quite over at that approval beep. Later – typically at day’s end – the transaction goes into settlement. The issuing bank transfers the funds to the acquiring bank (so the merchant actually gets paid), minus some fees. If it sounds like a lot of intermediaries, it is. Each party in this relay takes a little cut for their role in processing the payment. To understand why a $5 latte might net the café something like $4.85 after fees, we need to follow the money.

The Fee Behind Every Swipe

Each card payment comes with an invisible “toll” that merchants pay, known as the merchant discount rate. This fee, usually around 2-3% of the transaction, is split among the players in the card network. The biggest slice is the interchange fee, set by the card network and paid to the card’s issuing bank. Think of interchange as a kind of thank-you payment to the bank that issued the card, compensating it for fronting the money and handling any risk or fraud. Interchange often makes up the majority of that 2-3% fee.

There are other slices too: the card network takes a small assessment fee for running the network, and the acquiring bank or payment processor adds a markup for facilitating the transaction. In the end, although the acquirer is the one directly charging the merchant, they pass along the interchange to the issuer (through the network) and pocket a portion for themselves. The result? On a $100 sale, a merchant might only receive about $97–$98 after these fees. The issuer (your bank) typically gets the biggest piece of that pie – a reward for bringing a paying customer via their card. The card network takes its cut for providing the “rails” that connect all parties, and the acquirer keeps a small share for servicing the merchant account.

This model has worked for decades, funding the “rewards” on your credit card and the fraud protection systems that keep payments safe. Card networks boast high reliability and global acceptance – you can travel nearly anywhere, and your plastic will work. But the system’s complexity also creates cost and friction, especially for small merchants or cross-border transactions. Each percentage point in fees eats into margins, and waiting days for final settlement can strain a business’s cash flow. Enter stablecoins, stage right. They’re not here to burn this system down, but they are challenging it with a very different approach to moving money.

Enter Stablecoins: A New Challenger for Payments

Stablecoins are essentially digital money on blockchain rails – cryptocurrencies designed to hold a steady value (often 1:1 with a fiat currency like the U.S. dollar). If Bitcoin is the rollercoaster of crypto, stablecoins are the commuter train: boring by design, and that’s exactly the point. They combine the speed and programmability of crypto with the reliability of traditional money. At first, stablecoins like USDT (Tether) or USDC (USD Coin) were used by crypto traders as a safe harbour from volatility. But today they’re rapidly moving into the mainstream and even showing up at cash registers.

In short, stablecoins can move value across the world as easily as sending a text message, and for a fraction of the cost of card payments or bank wires. They don’t rely on the old(er) network of correspondent banks or card processors. Instead, transactions are validated on decentralised networks of computers (blockchains). From a merchant’s perspective, a stablecoin payment can settle almost instantly – the digital dollars land in their wallet within minutes, rather than the next business day. A coffee shop in Lagos or Lahore could accept a customer’s payment and have spendable funds immediately, rather than waiting 24-48 hours for the card payment to clear. Stablecoins enable instant, low-cost transfers, making them a compelling alternative to traditional card networks and banks for moving money. Unlike the 2–3% merchant fees typical of card transactions, stablecoins can settle payments for mere fractions of a cent.

Of course, stablecoins don’t magically eliminate all fees or issues. Someone has to run the service that lets a shopkeeper accept crypto and possibly convert it to local currency. And there’s the matter of trust: stablecoins maintain their value because they’re backed by reserves (like dollars or government bonds held by the issuer). You have to trust that issuer – be it Circle, Tether, or a regulated entity – to actually hold the $1 for every token in circulation. But despite these considerations, the value proposition is enticing, especially in regions where traditional banking and card infrastructure doesn’t reach everyone. Which brings us to why stablecoins are especially well-suited for mobile-first continents like Africa and Asia.

Mobile-First Leapfroggers: Why Africa and Asia Are Ripe for Stablecoin Payments

In much of Africa and Asia, people have leapfrogged traditional landlines and gone straight to mobile phones for their first communication device. Similarly, many have leapfrogged brick-and-mortar banking and gone straight to mobile money and digital wallets. The median age in Africa today is about 19 years—meaning a huge share of the population is young, adaptable, and born into the mobile era. Across major Sub-Saharan countries, mobile penetration is high, and youth are driving the use of mobile tech. Asia paints a similar picture: the region accounts for over two-thirds of global digital wallet spending, and mobile wallets are projected to handle nearly half of all point-of-sale payments in APAC.

Mobile-first consumers are already comfortable with QR codes and tap-to-pay. In China, WeChat Pay and Alipay dominate even among street vendors. In Kenya, M-Pesa revolutionised payments by making mobile phones financial tools. Stablecoins are now poised to be Mobile Money 2.0—riding the same ubiquity of smartphones but adding global interoperability and inflation-resistant value storage.

In markets where FX restrictions and inflation have eroded trust in local currency, stablecoins offer a lifeline. In Nigeria, they’ve become a workaround for capital controls; in Ethiopia, devaluation has driven a surge in stablecoin usage. A smartphone in Dakar or Delhi is no longer just a communications tool—it’s a gateway to global trade and financial inclusion.

Bringing Stablecoins to PoS: How It Works in Practice

So, now to the nuts and bolts of it all: how would stablecoin payments actually integrate into the checkout experience we described earlier? Think QR codes; smartphone wallets; and near-instant confirmation. A customer scans a code, sends stablecoins, and the merchant gets paid—no acquirers, no card networks, no waiting. Intermediaries can still play a role, helping merchants convert crypto to fiat behind the scenes, and often at a lower cost than traditional processors.

From crypto-specific PoS apps to integrations with mobile money systems (like those in Kenya), the tech is maturing fast. In many cases, the customer doesn’t even know they’re using blockchain; they’re just paying, faster and cheaper.

Stables at the Cash Register: Already a Reality

This isn’t hypothetical—stablecoin payments are already here. Major brands like Chipotle and Whole Foods accept them via intermediaries. Travel platforms and gift card apps are embracing stablecoins. Even if the hotel itself wouldn’t know what to do with a stablecoin, intermediaries bridge that gap, taking your stablecoins and handling the rest.

Consider the major card networks: rather than fight stablecoins, they have been actively exploring them. One major network recently piloted direct USDC stablecoin settlements for transactions. This means when a crypto-friendly card is used, the network can settle that transaction with the merchant’s bank using USDC over blockchain instead of traditional bank wires. It’s faster and could eventually cut costs, potentially reducing fees for everyone. Similarly, several banks are looking at issuing their own bank-backed stablecoins or using stablecoins for back-end settlements. Some banks have already launched a stablecoin for interbank payments – a private, secure, and instant way to transfer value among corporate clients. Other banks are joining forces to test stablecoins for cross-border transfers, replacing costly correspondent banking with leaner, more efficient solutions.

Some governments have even stepped in to legitimize crypto at PoS: while some countries have made Bitcoin legal tender, other nations are eyeing stablecoins closely, realizing they could play a role in the payments landscape or even spawn central bank digital currencies (CBDCs). But merchants aren’t waiting for all the regulatory dust to settle. From high-end electronics retailers in Singapore to street vendors in Lagos, if there’s a customer base that wants to pay this way, innovative merchants are finding ways to accept. In Singapore, stablecoin payments at merchants reached record volumes in a single quarter recently, driven by merchants adopting them for their efficiency and low cost. And in Nigeria, where tech-savvy youth and businesses often face currency issues, it’s not unheard of to hear a merchant say, “Sure, I’ll take USDT”, especially for larger ticket purchases – it beats dealing with volatile local currency or waiting for an international wire. In Kenya, some merchants in informal markets have started accepting stablecoins like the Celo Dollar for payments, facilitated by user-friendly apps. They see it as just another form of mobile money. And in countries with extreme inflation, dollar-pegged stablecoins have literally become a day-to-day currency for many people. The sight of someone paying for groceries by scanning a QR code on their phone, which deducts a few USDT from their wallet, is increasingly common in those environments where trust in the local currency is low.

Imagine this: you're buying a handcrafted bag from a market vendor in Nairobi. Instead of swiping a card and the merchant waiting days to receive the funds—less a few percent in fees—you scan a QR code, approve the transaction with your stablecoin wallet, and in seconds, the vendor has the money, in full. No hefty interchange costs, no waiting on settlement, no middlemen slicing off margins.

For the merchant, this means:

• Instant access to funds to restock or pay staff
• Significantly lower fees than traditional card payments
• No need for complex banking infrastructure
• The ability to tap into global customers without expensive cross-border fees

For you, the customer:

• A smoother, faster checkout process
• An easy way to transact—even if you don’t have a bank account
• Protection from local currency volatility if you’re holding digital dollars
• Potential perks like discounts or crypto cashback just for paying this way

It’s a win-win scenario: modern digital value, exchanged as easily as a smile. 

Embracing the Opportunity: A New Frontier for Banks and Fintechs

It’s tempting to frame the rise of stablecoin payments as a David vs. Goliath tale – scrappy new tech undermines the establishment. But the reality unfolding is more nuanced and optimistic. Banks, card networks, and fintechs are not dinosaurs doomed to extinction here; in fact, they have big opportunities to ride this wave and shape the future of payments. Stablecoins at PoS aren’t about tearing down the old system, but about building something better alongside it. Banks and networks can play a key role—some are already piloting stablecoin settlements and issuing their own digital currencies. The opportunity is to serve more people, more efficiently, and at lower cost.

In time, we may see checkout experiences where customers pay using a mix of points, fiat, and stablecoins—all in one tap. For now, the sound of a payment going through might still be a card beep. But soon, it could be a blockchain confirmation—quieter, faster, and just as satisfying. The future of payments is arriving, one tap at a time.

For fintech companies and payment startups, stablecoins are a playground of innovation. Many are rolling out features that enable merchants to accept stablecoin payments seamlessly, attracting new customer segments and reducing transaction costs. For merchants, this shift brings faster settlements, slimmer fees, and access to global customers without the red tape. For consumers, it offers more control, better value, and a smoother experience. And for financial institutions, it’s a chance not to be disintermediated, but to reimagine their role as enablers of a new financial fabric—one that connects traditional rails with the digital economy. For consumers, this means more choice and convenience – the ability to transact in whatever form of money best suits their needs, whether that’s a national currency, a stablecoin, or eventually a central bank digital currency. Paying for a meal might involve tapping a phone and seamlessly spending a mix of loyalty points, a dash of stablecoin, and a local currency, all converted in real time. The clunkiness of today’s payment frictions – currency conversions, high fees, delays – could become as obsolete as a dial-up modem tone.

As we cast our eyes to the horizon, the convergence of stablecoins and point-of-sale payments hints at a future where money is truly digital, borderless, and as agile as the information flows of the internet. So next time you hear the beep of a payment going through, consider this: in a few years, that sound might be a stablecoin transaction confirming on the blockchain, not a card approval from the bank. The coffee will taste just as good – but the way it was paid for will be markedly more modern. And that is a change worth looking forward to, for consumers, merchants, and the entire financial ecosystem alike. The future of payments is being written today in code and crypto, and it looks ready to be stable, secure, and in the palm of every mobile-first hand.