Shift4 has partnered with Lydian to add USDT payments to its Pay with Crypto service, extending a product already used by thousands of merchants in the United States.
Under the agreement, Shift4 merchants can accept Tether payments from major crypto wallets while receiving settlement in local currency. Merchants do not need to hold digital assets or change existing checkout workflows to use the service, the companies said.
Shift4 is introducing the stablecoin option as digital currency use becomes more common in payments. The companies cited more than 600 million crypto users worldwide and said stablecoin transaction volumes have exceeded Visa settlement volumes.
The partnership centres on Tether, the largest stablecoin by market value, and reflects a broader push to make digital assets easier to use in mainstream commerce. Stablecoins are designed to maintain a fixed value against a fiat currency, making them more attractive than more volatile cryptocurrencies for day-to-day transactions.
For retailers, a key barrier to accepting crypto payments has been operational complexity and exposure to price swings. Under the Shift4-Lydian arrangement, customers can pay via a crypto wallet, much like with a card, while merchants receive local currency rather than the digital asset itself.
This structure removes the need for merchants to manage wallets, convert funds or build separate processes for crypto payments. It can also reduce exposure to chargebacks and avoid some of the costs associated with traditional card networks and settlement systems, according to the companies.
Shift4 is expanding its digital payments operations as it reports quarterly earnings. Its Pay with Crypto service is already live with thousands of merchants across the US, giving it an established base from which to add stablecoin acceptance.
Lydian provides payment infrastructure for digital assets and stablecoins at the point of sale. Its system is designed to enable merchants and payment providers to accept digital assets and receive same-day settlement in local currencies.
Market shift
The addition of USDT comes as policymakers build more formal rules for digital asset use in payments. The companies pointed to improving regulatory clarity in the US and Europe, citing frameworks such as the GENIUS Act and the Markets in Crypto-Assets regime as factors that make stablecoin integration easier for businesses to assess.
That backdrop has encouraged payment groups to test whether stablecoins can serve as a practical alternative rail for certain transactions, particularly for merchants seeking faster settlement and lower processing costs. For providers such as Shift4, the appeal is offering another payment option without requiring merchants to take on direct crypto risk.
The market opportunity is substantial if consumer adoption continues to grow. The companies described digital assets as a USD $4 trillion economy, though merchant acceptance in everyday retail still lags far behind ownership and trading activity.
One challenge for the sector has been turning consumer crypto balances into routine spending at checkout. Many earlier crypto payment efforts struggled because merchants had to add new systems or accept uncertainty over pricing and settlement. Stablecoins have revived interest because they fit more easily into existing payment flows.
Taylor Lauber, Chief Executive Officer of Shift4, said the company sees crypto payments moving into the mainstream.
"We built our Pay with Crypto solution because it is becoming a mainstream payment method. This seamless, secure way to accept Tether expands on our successful program without added complexity or risk. We're giving merchants the tools to capture a fast-growing base of stablecoin paying customers," Lauber said.
Carl Grimstad, Chief Executive Officer of Lydian, said the company aims to make crypto function like traditional payments at checkout.
"Lydian was designed to bridge the gap between traditional money and digital assets by making crypto function exactly like traditional payments at checkout. Our mission is to bring digital assets, like USDT, into everyday commerce, allowing merchants to offer new ways to pay without introducing new risks or operational complexity," said Grimstad.