Bitcoin Adoption Is Consumer Behavior, Not a Tech Issue

• Jack Mallers says Bitcoin adoption depends more on consumer habits than technology.
• Card rewards keep users loyal while merchants absorb high payment processing fees.
• Bitcoin must become easier and cheaper at checkout to compete with card networks.

CEO Jack Mallers has put consumer habits at the center of the Bitcoin payments debate, arguing that adoption is not blocked by technology. Speaking at Bitcoin 2026, the Strike founder and Twenty One CEO said card networks keep users loyal through rewards funded by merchant fees.

His comments framed Bitcoin adoption as a behavioral challenge between shoppers, merchants, banks, and card companies. Mallers said consumers spend dollars because they lose value over time, while they hold Bitcoin because of its fixed supply.

Card Rewards Put Merchants Under Pressure

Mallers criticized large banks and card networks for charging merchants high payment fees. He said those charges, often ranging from 3% to 5%, help fund consumer rewards such as cashback, flights, and other perks.

The Coin Edition post on X described the issue as “Bitcoin vs card networks.” It said card companies maintain user loyalty through incentives, while merchants absorb the cost of those rewards.

In a similar report, Reuters acknowledged that a U.S. judge recently reviewed a revised $38 billion Visa and Mastercard settlement with merchants over swipe fees. The proposed deal, according to the report, would reduce some interchange fees and give merchants more flexibility to reject higher-cost cards.

The same report further cited merchant groups saying Visa and Mastercard swipe fees in the U.S. reached $118.8 billion in 2025, with an average fee of 2.36%. Separate Nilson Report data showed U.S. merchants paid $187.20 billion in processing fees to accept credit, debit, and prepaid cards in 2024. That equaled $1.57 for every $100 in card payments, showing why merchants continue to challenge the current payment model.

Bitcoin Positioned as an Open Payment Alternative

On the other hand, Mallers argued that Bitcoin can offer a cheaper and more open settlement layer than closed card networks. He described it as a system not controlled by banks or centralized payment companies.

The argument draws from Bitcoin’s original design as a peer-to-peer electronic cash system. That model allows online payments to move directly between parties without passing through a financial institution.

Mallers also compared Bitcoin with gold. He said Bitcoin has advantages, as it can support fast, low-cost global transactions, while gold remains harder to move and settle. Twenty One’s balance sheet reflects its position on the assets. As of now, the company holds 43,514 BTC, valued at about $3.3 billion.

Adoption Depends on Use at Checkout

Overall, the adoption challenge remains practical. Consumers often choose convenience, rewards, and familiar payment habits, while merchants focus on lower costs and faster settlement.

According to Mallers, Bitcoin must compete at the point of sale, not just as an investment asset. That means wallets and payment apps need to make payments simple, affordable, and useful for everyday buyers.

Related: JPMorgan CEO Warns of Bond Market Crisis: What It Means for Bitcoin and Crypto