In-depth Analysis of the Web3 Payment Industry

Introduction

Payments are a key scenario in the cryptocurrency ecosystem, with a large number of cryptocurrency payments occurring every day. New cryptocurrencies often appreciate in value due to their actual payment use cases, and payments have become an important bridge connecting the Web2 and Web3 worlds.

In the Web3 payment industry, some companies gain substantial profits by providing payment channels, while others focus on developing more secure wallet technologies. This article will delve into various business scenarios and projects in the Web3 payment industry.

Traditional Payment Giants Layout Web3 Payment

Recently, several traditional payment giants have made a high-profile entry into the Web3 payment sector:

• In August 2023, Paypal launched the dollar-pegged stablecoin "Paypal USD".
• In April 2024, Stripe announced that it would integrate stablecoin payments in a few weeks and will support USDC payments this summer.
• In June 2024, Mastercard launched the peer-to-peer transaction infrastructure function Mastercard Crypto Credential, supporting users in Latin America and Europe to achieve cross-currency cross-border payments on the blockchain.

The reasons why these traditional payment giants are布局Web3支付 include:

1. The high-profit potential of Web3 payments
2. The traditional payment industry is highly competitive and has high operating costs.
3. The user base and transaction volume of cryptocurrency payments are growing rapidly
4. The payment advantages brought by blockchain technology, such as low cost and high efficiency.

Advantages of Web3 Payments

Compared to traditional payments, Web3 payments have the following advantages:

1. Reduce exchange rate risk: Using cryptocurrency can minimize the loss from exchanging between different currencies.

2. Reduce transaction costs: eliminate intermediaries, lower transaction fees.

3. Enhance payment security: The decentralized and immutable characteristics of blockchain improve security.

4. Open up the global market: not restricted by international banking systems, quickly complete cross-border payments.

5. Tax incentives: Some countries offer tax incentives for cryptocurrencies.

6. Avoiding currency devaluation: In some high-inflation countries, cryptocurrency has become a tool for hedging against inflation.

7. Political and Social Impact: Cryptocurrencies can serve as tools for political and social movements in certain cases.

Main Scenarios of Web3 Payment

Web3 payments mainly include the following scenarios:

1. Deposit and Withdrawal: Exchange between fiat currencies and cryptocurrencies

2. The use of cryptocurrencies in the real economy: spending in physical stores through means such as crypto payment cards.

3. Third-party payment platforms: such as Revolut, Binance Pay, etc. providing cryptocurrency payment services

4. On-chain payment: Direct peer-to-peer payment on the blockchain network.

5. Stablecoin: such as PYUSD issued by Paypal

6. Cross-border payment: A fast and low-cost cross-border payment solution provided by Ripple for interbank transactions.

Main Participant Analysis

MoonPay

• Positioning: PayPal for Web3
• Main business: providing services such as fiat and cryptocurrency exchange, cryptocurrency trading, etc.
• Advantages: Possesses multiple country payment licenses, collaborates with large exchanges and wallets.

Alchemy Pay

• Position: Crypto Payment Gateway
• Main business: providing enterprises with cryptocurrency payment solutions, including deposits and withdrawals, payment gateways, cryptocurrency card issuance, etc.
• Advantages: Early layout in emerging markets such as Southeast Asia

Bit.Store

• Positioning: Cryptocurrency payment card infrastructure provider
• Main products: virtual cards and physical cards, supporting online and offline consumption
• Features: Physical card supports ATM cash withdrawal

Ripple

• Positioning: Blockchain-based global payment network
• Main Products: RippleNet, providing banks and financial institutions with fast and low-cost cross-border payment solutions.
• Advantages: More than 100 banks and payment institutions have joined its network.

Industry Development Trends and Outlook

1. Regulations are gradually clarifying, and more countries are beginning to legalize cryptocurrency payments.

2. Traditional financial institutions and payment giants continue to布局, bringing in more institutional capital.

3. Continuous technological innovation, such as the application of new technologies like identity aggregation and capital flow.

4. User education and increasing awareness, cryptocurrency payments are gradually becoming one of the daily payment methods.

5. Enhanced cross-chain interoperability, making payments between different blockchain ecosystems more convenient.

6. The application scenarios of stablecoins are expanding, playing a more important role in the payment sector.

7. Emerging market demand is growing, especially in high-inflation countries where the demand for cryptocurrency payments is increasing.

8. Security and privacy protection are continuously strengthened, enhancing user trust.

9. Deep integration with traditional payment systems to achieve seamless connection.

10. Emerging fields such as DeFi and GameFi bring more innovative payment scenarios.

Web3 payment is reshaping the global payment landscape, and it is expected to become a more decentralized, transparent, and efficient payment method in the future, driving the transformation of the global financial system.