In a significant move for the European public transport sector, Tisséo has emerged as the pioneering transit network to accept cryptocurrency payments. This initiative, launched in March, aims to facilitate ticket purchases through digital currencies, highlighting a potential shift towards broader acceptance of crypto for everyday transactions.
The journey of cryptocurrency began back in May 2010 when programmer Laszlo Hanyecz famously exchanged 10,000 bitcoins for two pizzas in Florida, marking what is now known as Bitcoin Pizza Day. Fast forward to today, and approximately 15,200 merchants globally have begun accepting bitcoin, with daily transactions reaching around 328,370, as reported by Fundera. Although this figure is relatively small compared to the two billion daily credit card transactions worldwide, there are signs that the use of cryptocurrencies for small purchases, such as a cup of coffee, may soon become commonplace.
In March 2025, Tisséo, located in Toulouse, France, took the lead as the first public transportation system in Europe to implement cryptocurrency payments. This follows a trend where other French establishments, like the luxury department store Printemps, have started to incorporate digital currencies to attract an international clientele. Beyond France, the acceptance of cryptocurrency is gradually expanding into various sectors, with notable examples including the acceptance of crypto for tax payments in Colorado and aspirations from former President Donald Trump to position the U.S. as the global hub for cryptocurrency.
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Sacha Briand, a board member at Tisséo and deputy mayor of Toulouse, shared insights on the use of their app, which facilitates around ten cryptocurrency transactions weekly. Given that Toulouse is a university city with a tech-savvy youth demographic, Briand anticipates an increase in usage as students return for the new academic year. As Tisséo modernizes its payment systems in tandem with the upcoming launch of a new metro line in 2028, they have partnered with Lyzi, a payment platform, to allow Android users to purchase tickets using cryptocurrencies alongside conventional payment methods.
The integration of these systems cost Tisséo approximately €50,000, with no commission earned from cryptocurrency transactions. Briand acknowledged the challenges posed by public accounting rules that needed to be adapted to accommodate this new payment method, though he noted that the implementation process was not overly complicated. The integration is managed by Lysi, which connects cryptocurrency users with Tisséo, ensuring that Tisséo’s staff, while not directly handling crypto, are trained to manage refund requests similarly to traditional credit card transactions. With around 18% of the French population currently holding cryptocurrencies, industry experts predict this number will continue to rise. Thomas Franklin, CEO of Swapped, estimates that even if only a small percentage initially uses cryptocurrency for travel payments, that figure could potentially double annually, reaching a ten percent usage rate by 2027 if the transaction experience is seamless.
Public Transport and Cryptocurrency
Franklin emphasizes that public transport is an ideal starting point for cryptocurrency adoption due to the nature of the transactions involved, which are typically low-cost and frequent, reducing the likelihood of disputes over refunds. This sentiment is echoed by Julia Barashkov, a PhD researcher at Delft University of Technology, who highlights the similarities between public transport systems and the token economy, where access to services is tokenized without the transfer of ownership. She notes that the transaction needs of riders align with the operational efficiency sought by transport operators, while also acknowledging the complexities faced by businesses in the physical realm when it comes to cryptocurrency adoption.
Globally, countries are gradually integrating crypto payments into their economies. Bhutan recently partnered with Binance Pay to establish a national-level cryptocurrency payment system for the tourism sector. This initiative allows travelers to use supported cryptocurrencies for various travel-related expenses, including airline tickets and hotel bookings. Papuna Lezhava, CEO of Keepz, observes a growing trend where nations with supportive regulations and infrastructure are experiencing quicker adoption of cryptocurrency for everyday transactions.
Challenges of Spending Digital Assets
Despite the increasing interest in cryptocurrency, many users still view digital assets primarily as investment vehicles rather than as currency for everyday purchases. Franklin points out that the volatility associated with cryptocurrencies often discourages spending; individuals are reluctant to use assets that could potentially appreciate significantly in value. However, the emergence of stablecoins like USDC, which are pegged to traditional currencies, is beginning to shift this perspective. He notes that consumers are more willing to spend stablecoins or Layer-2 tokens due to their lower volatility, provided that merchants can integrate these payment methods effectively into their systems.
For cryptocurrency payments to become as straightforward as current tap-to-pay systems, several obstacles must be addressed. Presently, making a payment using crypto involves multiple steps, but Franklin envisions a future where transactions could occur seamlessly without manual calculations or delays. He estimates that achieving this level of convenience may still be five to seven years away.
Merchant Barriers and Risks
Merchants face substantial challenges when it comes to accepting cryptocurrency payments. As Franklin explains, existing accounting systems do not automatically sync with crypto transactions, creating complications when it comes to real-time conversion and bookkeeping. To alleviate these issues, many businesses are turning to specialized processors that can facilitate instant conversion and stablecoin acceptance. The key to success in this space will likely lie with those who can effectively outsource the complexities of cryptocurrency transactions.
The inherent volatility of cryptocurrencies also raises significant concerns for both merchants and consumers. If a retailer receives a payment in crypto that subsequently depreciates before conversion to fiat currency, it can have a detrimental impact on revenue. However, Lezhava notes that newer platforms are addressing these concerns by offering real-time conversion options, ensuring merchants receive the expected payment amount while allowing customers to engage confidently with their digital assets. Alongside volatility, Franklin stresses the importance of understanding the various risks associated with cryptocurrency payments, including chargebacks and settlement times, which can complicate the financial landscape for businesses. Regulatory considerations also play a role, as excessive bureaucracy can hinder the adoption of payment innovations.
In the UK, while the Bank of England explores the potential for a digital pound and FinTech companies encourage the adoption of new technologies like Open Banking, the momentum towards widespread cryptocurrency payment acceptance in retail and public services appears sluggish. Franklin suggests that regulatory caution stemming from Brexit may prolong the timeline for mass crypto adoption. In the US, the situation is similarly fragmented, with some cities embracing cryptocurrency while others impose stringent restrictions. Recent media attention surrounding Donald Trump’s meme coin, while increasing visibility, has not necessarily translated into a significant uptick in cryptocurrency payment usage.
The Road Ahead for Cryptocurrency Payments
The normalization of cryptocurrency as a payment method is unlikely to happen instantly. Much like the progression of the internet or mobile banking, the adoption of cryptocurrencies will likely unfold in stages, driven more by their practical applications than by fleeting trends. Barashkov emphasizes that successful integration of cryptocurrency into physical spaces will require buy-in from individuals who may not even hold the tokens themselves. Currently, Tisséo plans to evaluate its cryptocurrency payment option later this year, but no definitive decisions regarding its expansion or discontinuation have been made. Briand asserts that their decision to embrace cryptocurrency was not merely a reaction to trends but rather a strategic move to align with evolving payment technologies, reflecting Toulouse’s identity as a center for innovation.
As cryptocurrency continues to develop beyond its origins as an alternative financial instrument, it may gradually become integrated into everyday life. With advancements in infrastructure and payment systems, the use of cryptocurrencies for transactions could transition from being an unusual practice to a routine part of daily commerce. Nevertheless, significant hurdles remain before this vision of widespread cryptocurrency adoption can become a reality.
