60% Top-tier banks enter the market! Cryptocurrency payments reach a tipping point, with Millennials leading the support

PayPal and the U.S. National Cryptocurrency Association survey on Monday shows that 39% of American merchants have accepted cryptocurrency payments, and 88% have received customer inquiries. Millennials and Generation Z show the highest interest. 60% of the top 25 U.S. banks have launched Bitcoin custody and trading services. Payment infrastructure provider Mesh completed a $75,000,000 Series C funding round, valuing the company at $1,000,000,000.

88% of Merchants Receive Cryptocurrency Payment Inquiries

(Source: U.S. National Cryptocurrency Association, PayPal)

According to a survey released on January 27 by PayPal and NCA, consumer demand is driving the adoption of cryptocurrency payments. Up to 88% of merchants report receiving inquiries from customers about using cryptocurrencies for payments, far exceeding the 39% of merchants who actually accept crypto. This gap between demand and supply reveals that the market is at a critical point of rapid transformation.

More detailed data shows that 69% of merchants say customers want to use cryptocurrency at least once a month. These are not occasional curiosity-driven questions but ongoing needs with actual usage intent. When nearly 70% of merchants feel multiple monthly payment requests, it can no longer be considered a niche market but a mainstream trend with scale effects.

Generational differences are very pronounced in this survey. By age group, Millennials (77%) and Generation Z (73%) show the strongest interest. Notably, Generation Z has the highest inquiry rate about cryptocurrencies at 82%, even surpassing medium-sized enterprises (67%) and large corporations (65%). This demographic trend indicates that widespread adoption of crypto payments is only a matter of time; as young generations’ purchasing power grows, demand will naturally expand.

Consumer Cryptocurrency Payment Demand Analysis

Merchant Inquiry Rate: 88% of merchants receive customer questions

Monthly Usage Intent: 69% of customers want to use crypto at least once a month

Millennial Interest: 77% willing to use

Generation Z Leading: 73% usage intent, 82% inquiry rate highest

Industry Hotspots: Hotels and travel 81%, Digital goods and gaming 76%, E-commerce 69%

By industry, hotels and travel have the highest acceptance of crypto payments at 81%. This is unsurprising, as international travelers often need multi-currency payments and face high foreign exchange fees, which cryptocurrencies can provide a more convenient alternative for. Next are digital goods, gaming, and luxury retail (76%), whose customer bases tend to be younger and more receptive to new technologies. Retail and e-commerce (69%) follow closely, indicating mainstream consumer scenarios are rapidly embracing crypto payments.

An eye-catching finding is that 90% of merchants say they would accept cryptocurrencies if the setup process were as simple as accepting credit cards. This reveals that the biggest current barrier is not willingness but usability. Traditional credit card payment systems have been optimized over decades; merchants only need to register with a payment processor and install terminals. In contrast, accepting crypto payments involves setting up wallets, understanding blockchain confirmation mechanisms, managing price volatility, and other complex steps.

NCA Chairman Stu Alderoty states: “These data clearly show that interest in cryptocurrencies is not the problem; the problem is lack of understanding. We are working together to bridge the knowledge gap and demonstrate how crypto can become simple and easy to use, enabling ordinary businesses and consumers to get started effortlessly.”

15 Top Banks Launch Bitcoin Custody and Trading

(Source: RIVER)

The shift among traditional financial institutions is equally astonishing. According to data released in January 2025 by crypto financial platform River, 60% (15 out of the top 25 U.S. banks) have launched or announced plans for Bitcoin custody or trading services. This ratio has surged from nearly zero just a year ago, marking a fundamental change in the attitude of traditional banking toward cryptocurrencies.

The specific institutions read like a “Wall Street Hall of Fame.” PNC Bank has launched comprehensive custody and trading services, allowing clients to buy, sell, and store Bitcoin through their traditional bank accounts. JPMorgan Chase, Charles Schwab, and UBS have also announced trading services, initially likely limited to certain client segments. Goldman Sachs, Morgan Stanley, and Wells Fargo focus on providing Bitcoin exposure to high-net-worth clients, often via derivatives or structured products. American Express has even introduced a Bitcoin rewards card, integrating crypto into its traditional credit card business.

Just a year ago, most Wall Street giants remained cautious or skeptical about cryptocurrencies. Today, they are rushing into the space, clearly indicating that institutional investors and high-net-worth individuals’ demand has reached an undeniable level. Banks’ motivation is not only to chase new revenue streams but also to defend their turf; if they do not offer crypto services, clients may turn to Coinbase, Kraken, and other specialized platforms, risking client relationships.

The typical model for banks offering crypto services combines custody and trading. Custody addresses core concerns about asset security, leveraging their expertise in risk management, insurance, and compliance to provide institutional-grade safekeeping. Trading services allow clients to buy and sell Bitcoin via familiar banking interfaces without learning to use crypto exchanges. This “seamless integration” reduces adoption barriers and accelerates mainstream acceptance.

Mesh Unicorn Valuation and Arbitrary Coin Conversion Technology

Investments in payment infrastructure are accelerating. On January 27, crypto payment network Mesh announced the completion of a $75,000,000 Series C funding round, valuing the company at $1,000,000,000, reaching unicorn status. Its total funding now exceeds $200,000,000. Dragonfly Capital led this round, with Paradigm and SBI Investment also participating.

Notably, some of the funds are settled in stablecoins. Mesh describes this as “conclusive evidence that when enterprise-level execution, auditability, and control measures are in place, global institutions can now confidently rely on blockchain-native settlement.” Using stablecoins for risk investment transactions itself demonstrates the maturity of crypto payment infrastructure.

Mesh’s core technology, SmartFunding, supports an “arbitrary coin to arbitrary coin” payment mode. Consumers can pay with any cryptocurrency they hold (Bitcoin, Solana, etc.), while merchants can receive instant settlement in their preferred stablecoins (USDC, PYUSD) or fiat currency. This flexibility addresses two major pain points of crypto payments: consumers don’t need to convert currencies for payment, and merchants are protected from price volatility.

The network currently has over 900 million users worldwide, making it one of the largest crypto payment networks globally. Mesh co-founder and CEO Bam Azizi states: “The winners in the next ten years won’t be those issuing the most tokens, but those building the network of networks, making traditional card payment channels obsolete.” This vision hints that the ultimate form of crypto payments is not to replace credit cards but to create a more efficient, cheaper, and more global payment infrastructure.

All three data points point in the same direction: consumer demand, merchant acceptance, and bank participation have reached a critical mass. Challenges remain, usability is still the biggest obstacle, but encouragingly, companies like Mesh are working to hide complexity behind the scenes. Crypto is shifting from speculation to infrastructure, and 2026 may be the year this transformation truly begins.