Read on Twitter
1 / bridging fiat & crypto: a quick thread on payment gateways like @sendwyre @MoonPayHQ @SimplexCC @XanpoolOfficial
2 / Payment Gateway solutions typically solve two problems:
1. For users - they provide onramps, get crypto via credit card, bank or other payment platforms
2. For platforms (e.g., exchanges, dapps)- they often act as a compliance solution and outsource payment integrations
1. For users - they provide onramps, get crypto via credit card, bank or other payment platforms
2. For platforms (e.g., exchanges, dapps)- they often act as a compliance solution and outsource payment integrations
3 / The "stripe for crypto" model makes sense.
A major adoption hurdle is buying your first crypto. If you can do this with a credit card or payment app - friction goes down severely. It can be $$ for startups to build themselves.
A major adoption hurdle is buying your first crypto. If you can do this with a credit card or payment app - friction goes down severely. It can be $$ for startups to build themselves.
4 / This business of payment processing is already massive (~$63B) but incumbents aren’t bought into the crypto market, and therefore not addressing it.
5/ On the surface it feels like a “today” problem that may be taken care of by incumbents & large brands in the future. To this end, it comes down to product differentiation & execution
6/ A few factors that I think will create market differentiation:
- Geographical coverage
- Ease of use
- Brand awareness
- Geographical coverage
- Ease of use
- Brand awareness
7/ Product expansion will also be interesting.
What happens when it reverses: fintech & traditional finance want easy onboarding to crypto?
how can you expand for the entire user onboarding experience?
What happens when it reverses: fintech & traditional finance want easy onboarding to crypto?
how can you expand for the entire user onboarding experience?
8 / It's a use case that is exemplary of a larger trend.
crypto creating solutions for crypto problems because they aren't served by the larger market.
the dynamics will be interesting when crypto markets 10x - who has the advantage? incumbent scale or crypto expertise?
crypto creating solutions for crypto problems because they aren't served by the larger market.
the dynamics will be interesting when crypto markets 10x - who has the advantage? incumbent scale or crypto expertise?
9 / Lastly, a few other open questions about the market:
- Will payment gateways remain a 3rd party service or b
become an in-house platform requirement?
- Is there an opportunity to move into the identity space?
- How sticky are these products (for users & platforms)?
- Will payment gateways remain a 3rd party service or b
become an in-house platform requirement?
- Is there an opportunity to move into the identity space?
- How sticky are these products (for users & platforms)?
