KuCoin’s AEON Partnership Reflects Industry Push for Scalable Web3 Payment Solutions

Key Takeaways

• KuCoin Pay has integrated AEON’s crypto payment infrastructure.
• The partnership targets the growing retail market for Web3 payment solutions.
• While crypto payments are still relatively rare in retail, the massive growth of stablecoins in recent years points to rising mainstream adoption.

Ever since the Bitcoin protocol was first conceived, payments have been the quintessential crypto use case.

But despite the advances of second- and third-generation blockchains, stablecoins, app integrations and various crypto-fiat conversion channels, the work of building a mainstream Web3 payments infrastructure is still ongoing.

Part of the challenge is that modern consumers expect crypto-based options to be at least as cheap and convenient as fiat payments.

KuCoin Pay Integrates With AEON

Launched in January 2025, KuCoin Pay is KuCoin’s cryptocurrency payment solution, designed to bridge the gap between traditional retail and digital assets.

The platform lets e-commerce and physical retailers receive payments in Bitcoin, Ether, USDT, USDC and KuCoin’s native token, KCS.

KuCoin and AEON announced a new integration on Tuesday, May 20, building a mobile platform that enables frictionless payments across e-commerce and in-store purchases.

AEON is branded as a “payment abstraction” protocol. It provides the pipes and wires for merchants to accept multichain crypto payments, without having to manage multiple wallets, bridges and conversion channels.

The new integration is especially focused on mobile transactions, extending KuCoin Pay’s reach into mobile ecosystems at a time when app store operators are easing restrictions on Web3 payments.

Stablecoins Go Mainstream

Despite advances like the Bitcoin Lightning Network and user-friendly crypto wallets, true crypto payments remain a niche option that has never gained mainstream adoption. (Although die-hard Bitcoiners are unlikely to ever give up on the idea.)

Stablecoins, on the other hand, which are mostly tied to the value of the dollar and aren’t viewed as long-term investments, have emerged as a genuine alternative to fiat payments.

However, KuCoin faces stiff competition if it wants to establish itself as a leader in stablecoin-based retail payments.

Payment Heavyweights Back Stablecoins

According to the World Economic Forum, the total volume of stablecoin transactions in 2024 reached $27.6 trillion, surpassing the combined volume of all Visa and Mastercard transactions.

Against this backdrop, digital payment processors like PayPal and Stripe, as well as legacy card networks, have moved to accommodate the new kid on the block.

For PayPal, that means launching its own alternative to the Web3 native USDt and USDC.

Meanwhile, Stripe’s leadership recently described stablecoins as financial “superconductors,” making it clear that they view the technology as an increasingly central component of the global payments stack.

Finally, both Visa and Mastercard now facilitate stablecoin acceptance for merchants and offer cards linked to stablecoin balances.

After years of political deadlock, stablecoins could also get a boost from the GENIUS Act, which currently represents the most promising avenue for Congress to advance a regulatory framework for the technology.

Dedicated regulation in the U.S. could turbocharge stablecoin adoption, paving the way for banks, retailers and even large payroll administrators to embrace the payment option.