Merchants Eye Back-End Costs as Crypto Cards Push Into Checkout

The payments industry has become remarkably good at masking complexity from consumers. But merchants do not operate on the front end. Their concerns live in the back office.

And with Revolut on Monday (May 18) unveiling its first physical cryptocurrency debit card, crypto’s next adoption phase as a payment mechanism may be decided by the Main Street merchant bank office. After all, a coffee shop, regional retailer or eCommerce merchant does not care whether value originates from a debit account, a credit line or a tokenized wallet if settlement arrives on time, reconciliation is seamless, fraud exposure is manageable and accounting systems remain intact.

With crypto spending moving closer to the point of sale, the burden is shifting to payment service providers (PSPs) and issuers to prove they can deliver enterprise-grade settlement, reconciliation, liquidity management and dispute controls. Merchants are increasingly asking whether the infrastructure and systems sitting behind today’s crypto backed card transactions can function with the same reliability, predictability and operational rigor as traditional card rails.

More like this: Lawmakers Recast Stablecoins as Payments Tools in CLARITY Act Compromise

PSPs Are Becoming the Translators Between Two Financial Worlds

Every payment method introduces downstream implications across treasury operations, refunds, compliance, chargeback management, accounting and liquidity forecasting. Traditional card networks spent decades building standards and dispute frameworks that merchants understand, even if they often dislike the associated fees. Crypto-linked payments, by contrast, still sit in a comparatively immature operational environment.

Merchants evaluating crypto acceptance increasingly want to know who bears volatility risk during settlement windows. They want clarity on whether refunds are issued in fiat or digital assets. They want assurances that enterprise resource planning (ERP) systems can reconcile transactions without introducing manual accounting workarounds. They want to understand how disputes will be adjudicated if tokenized payments move across hybrid systems involving blockchain infrastructure and traditional card rails simultaneously.

“Accepting a crypto payment is not super simple,” WalletConnect CEO Jess Houlgrave told PYMNTS in an interview this month. “You’ve got to have the connectivity, the user experience, the wallet infrastructure, the settlement infrastructure, the conversion and liquidity infrastructure. There’s a lot of pieces there.”

“The majority of merchants don’t want to change their accounting processes,” Houlgrave added. “They want it to be a switch-on in a dashboard or an email saying, ‘Switch on my crypto payments.’”

That reality is pushing PSPs into a more strategically important role. Historically, processors primarily optimized transaction routing and merchant acceptance. In the crypto era, they increasingly function as translators between blockchain-native systems and the conventional financial infrastructure businesses still rely upon.

See also: Making Sense of Where Stablecoins Fit in the Issuer-Merchant-Acquirer Stack

The Merchant Calculation Is Becoming Ruthlessly Practical

PSPs now face pressure to provide enterprise-grade treasury capabilities that many crypto-native firms historically deprioritized. Liquidity management has become especially critical. Merchants cannot tolerate unpredictable delays caused by fragmented liquidity pools or conversion bottlenecks between digital assets and fiat currencies. Settlement timing directly affects working capital management, particularly for small and medium-sized businesses operating on thin margins.

If crypto-enabled payment rails reduce costs, improve settlement speed and simplify international commerce without introducing meaningful new risk, adoption will expand. If they create additional accounting complexity, uncertain dispute mechanisms or treasury instability, merchants will limit usage regardless of consumer curiosity.

The irony is that crypto’s mainstream future may depend less on disrupting traditional finance than on replicating its dependability. Merchants do not reward technological ambition alone. They reward systems that reduce uncertainty. Can issuers guarantee stable liquidity under volatile market conditions? Can PSPs automate reconciliation across hybrid payment environments? Can acquirers manage fraud and disputes with the same predictability merchants expect from incumbent networks? Can settlement infrastructure meet regulatory expectations across multiple jurisdictions simultaneously?

That pragmatic lens explains why physical crypto cards matter symbolically but not necessarily commercially on their own. Products like Revolut’s latest offering signal that digital assets are becoming embedded within mainstream consumer finance experiences. But merchant adoption will not hinge on the card itself. It will hinge on the invisible systems supporting it.