Crypto payments may be about to go mainstream in Australia, with Stripe releasing tools for merchants to accept stablecoins. What does it mean for the big card schemes?
A wave of options for consumers and merchants to use and accept stablecoin crypto currencies, both online and instore, is coming to Australia – and the world – with Stripe the latest platform to unveil tools to facilitate stablecoin transactions.
A stablecoin is a type of cryptocurrency designed to have a stable value, typically by being tethered or pegged to a traditional asset, such as a fiat currency (e.g. Australian dollar, US dollar or Euro), a commodity (like gold), or a basket of assets.
Stablecoins pose a significant threat to traditional card schemes like Visa and Mastercard by offering a cheaper, faster alternative for digital payments.
Because stablecoins can settle peer-to-peer or on blockchain rails with minimal fees, they bypass the traditional and opaque multi-step processing model that underpins interchange fees and scheme revenues.
This disintermediation could erode the card networks’ core business, particularly for low-margin, high-volume transactions.
In a major move last week, Amazon and Walmart announced they were exploring issuing their own stablecoins – something of a backflip for Amazon which was only saying six months ago there was insufficient demand for crypto payments – as the Genius (Guiding and Establishing National Innovation for US Stablecoins) Act in the US moves closer to passing through Congress, allowing companies to create stablecoins.
As soon as news of these plans emerged Visa’s stock fell 5% and Mastercard’s dropped 4%.
Australian authorities including the Treasury and the Reserve Bank of Australia are racing to better regulate crypto currencies, including creation of stablecoins by private companies.
Merchants can legally accept stablecoins such as USDD, USDT, USDC or AUDD, for payments.
But they are not yet accepted as legal tender, so acceptance remains at the merchant’s discretion.
Stripe leading major payment platforms
Stripe’s new offerings are backed by crypto exchange Coinbase and the platform is inviting Australian merchants to sign up.
Stripe has also partnered with popular ecommerce platform Shopify to allow merchants to accept USDC payments globally, including in Australia enabling seamless acceptance of stablecoin payments through existing checkout systems.
Stripe did not respond to questions from PayDay News.
It joins local niche players Coinjar and Independent Reserve, and a range of other niche players already in operation, as regulators race to catch up to the emerging market.
Other ecommerce platforms such as WooCommerce (WordPress), Magento and payment gateways facilitate cryptocurrency transactions including local players RelayPay and CoinPay as well as global companies BitPay and NOWPayments.
They generally support in-store and online crypto payment solutions.
Adyen does not natively support the acceptance of crypto or stablecoins as payment methods on its platform.
However, it has shown interest in the cryptocurrency space by partnering with third-party providers to facilitate crypto payments.
An example is with BitPay, which enables merchants using Adyen’s platform to accept Bitcoin and a range of stablecoins.
It may be some time before the crypto option from Block Inc’s Square arrives in Australia.
On May 30 the company announced that it would rollout “Bitcoin for Business” later this year in the US but there is no specific timetable for an Australian rollout beyond a more general goal of 2026 “for all”
“Block has long been a champion of bitcoin, focused on making it more accessible and usable in our everyday lives,” said Block Bitcoin Product Lead Miles Suter.
“Rolling out a native bitcoin experience to millions of sellers brings us one step closer to that goal.
When a coffee shop or retail store can accept bitcoin through Square, small businesses get paid faster, and get to keep more of their revenue.”
Already a range of options for crypto holders
Consumers have two ways of using crypto to buy goods and services.
Most directly, this is being done through the emerging range of online – and POS solutions – that accept stablecoin.
Australian companies doing this at present include RelayPay and CoinJar.
People holding regular crypto currency such as Bitcoin or Ethereum, use a crypto exchange to convert the currencies into stablecoin through their crypto wallets (Trust Wallet, CoinJar, etc) on mobile phones or other computer devices.
The other is by using Visa and Mastercard crypto cards or crypto gift cards.
In Australia Stables (formerly Tiik), CoinJar and CoinSpot offer crypto backed Mastercard debit cards.Crypto.com, Wirex and CryptoSpend offer crypto backed Visa debit cards.
Bitrefill, Coinsbee, Cryptorefills and CoinGate all allow people to buy email delivered gift cards with a range of crypto currencies that can be used at Coles and Woolworths.
Australian banks have been cautious about crypto for use at POS. ANZ and NAB have issued AUD-backed stablecoins (A$DC and AUDN, respectively) for use in institutional and cross-border transactions; these initiatives have not extended to consumer-facing POS systems. Tyro Payments, SmartPay and Zeller have yet to offer the option of crypto payments at POS.
In the U.S.PayPal offers comprehensive cryptocurrency functionalities, allowing users to buy, sell, hold, and use cryptocurrencies directly within the PayPal app but this is presently unavailable in Australia.
In the last two years, more than $94 billion in stablecoin payments were settled globally.
During that time, monthly payment volume grew from less than $2 billion to over $6.3 billion.
There are differing estimates of how many Australians hold crypto currency ranging from the bullish 31% of Australian adults owning crypto (up from 28% last year) according to the 2025 Independent Reserve Cryptocurrency Index (“IRCI”) report which means 6.2 million Australian adults own or have owned crypto.
But many believe this is over cooked. Last year about 600,000 taxpayers declared crypto investments to the Australian Taxation Office (ATO).
In May it was reported that Self-Managed Super Funds (SMSFs) have increased their crypto holdings from $199 million 2019 to $1.67 billion in 2024.
The Australian government recognises digital currencies and cryptocurrency exchanges are regulated in Australia.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, businesses that provide digital currency exchange services must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
To combat rising scams and fraudulent activities, AUSTRAC has imposed a $5,000 cap on cash transactions through crypto ATMs.
Additional measures include enhanced customer verification and mandatory scam warnings to protect consumers.
To combat rising scams and fraudulent activities, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has imposed a $5,000 cap on cash transactions through crypto ATMs.
Additional measures include enhanced customer verification and mandatory scam warnings to protect consumers.
Major regulatory push from Canberra this year
Now, the Federal government is moving to better regulate the sector in line with other jurisdictions such as the EU’s Markets in Crypto-Assets Regulation (MiCA) and Singapore’ Single-Currency Stablecoins (SCS) – and to allow the creation of stablecoins by private companies.
In March Treasury released its Statement on Developing an Innovative Australian Digital Asset Industry “that outlined its plans for reforming the digital asset landscape and its progress to date.
“The Statement says the Government’s proposed approach ’will help industry to identify opportunities and manage risks, unlock innovation, protect consumers and uphold market integrity’.
The approach aims to align Australia’s digital asset sector with international best practice, in a bid to boost its global competitiveness, “ law firm Clayton Utz wrote.
The Australian government’s digital asset reforms will be built on four central pillars.
First, a new regulatory framework will be established for Digital Asset Platforms (DAPs), which are online services that hold cryptocurrencies and other digital assets on behalf of consumers.
Second, a tailored regime will be introduced for payment stablecoins, which will be regulated as a type of Stored-Value Facility (SVF) under broader payments licensing reforms.
Third, authorities will review the Enhanced Regulatory Sandbox to support innovation while managing risk.
Finally, the reforms aim to responsibly harness the benefits of digital asset technology across financial markets and the wider Australian economy.
Payments made with stablecoins are treated similarly to other crypto payments by the ATO: they are a barter arrangement.
Businesses must keep records of transactions for GST and income tax purposes, and may have capital gains tax obligations.
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