Euro Area Businesses Cool on Crypto Payments: ECB Report Details

A recent report from the European Central Bank (ECB) reveals that corporate acceptance of cryptocurrencies as a payment method remains highly limited among businesses in the Euro area, maintaining a marginal position despite the rapid rise of other digital payment forms.

Crypto Payments' Marginal Status in the Euro Area

The ECB's comprehensive survey, conducted with 8,205 businesses across 21 Euro area countries, indicates low penetration of crypto assets in the retail sector:

■Only 0.2% of companies selling goods and services online accept crypto assets.

■At physical points of sale, this rate remains below 1%.

■The survey cited popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Tether’s USDt (USDT) as examples when questioning businesses.

Major Shift in Digital Payments: The Rise of Mobile

In contrast to the stagnation of cryptocurrencies, other digital payment methods, particularly mobile payments, have gained significant momentum in the Euro area:

■Mobile payment acceptance at physical locations jumped from 36% in 2024 to 68% by 2026, marking the biggest shift.

■The most commonly accepted mobile options include instant payments and digital wallets like Apple Pay and Google Pay.

■Cash acceptance increased from 90% to 92%, maintaining its position as the most widely accepted payment method.

■Physical card acceptance rose from 87% to 88%.

■Acceptance of bank checks, however, declined from 36% to 27%.

Dynamics Shaping Business Payment Preferences

The most important criteria businesses considered when choosing payment methods were:

■Consumer preference: 26% of respondents cited this factor.

■Security: Ranked second at 22%.

■Ease of handling: Mentioned by 15%.

The primary reasons cited by businesses for rejecting cash payments were weak customer demand (36%), difficulties in depositing or withdrawing cash (35%), and security risks (29%).

Digital Euro and Regulatory Uncertainty

The ECB continues its work on a digital euro, a central bank digital currency (CBDC) designed to complement cash and preserve the euro's role. The survey does not clarify how to account for converted crypto payments, where customers pay with crypto but merchants receive settlement in traditional currency. The ECB stated that it does not set payment regulations and referred inquiries to the European Commission and national lawmakers.

This report clearly demonstrates the current low penetration of cryptocurrencies in retail payments across Europe. While the implementation of MiCA regulations is expected to potentially increase institutional adoption and user confidence, the ECB's focus on the digital euro suggests a cautious stance by the existing financial system towards crypto innovations. Particularly, the ambiguity in reporting crypto-to-fiat converted payments constitutes a significant gray area in terms of regulatory compliance, indicating a need for clearer rules in the future. For institutional investors, this situation will necessitate a search for greater clarity and legal certainty in investment decisions regarding crypto payment infrastructures.