MugglePay 2023: The world’s first cryptocurrency payment gateway with Web3 login, dedicated to building a new Crypto-Native world.
By Sanye
The year 2023 marks a turning point for the cryptocurrency industry, with MugglePay successfully transitioning from Web2 to Web3. This upgrade encompasses everything from the underlying settlement protocols to the account login systems, all of which are decentralized. We relinquished control over handling user funds in exchange for absolute security of merchant funds. Additionally, using Web3 accounts for login means we no longer access merchant account information, ensuring that merchant accounts and funds exist solely on the blockchain’s ledger. This offers a higher level of privacy and financial security compared to traditional centralized account systems.
A phrase from A16Z’s ‘State of Crypto’ deeply resonated with MugglePay’s mission: instead of being a financial speculation casino, Crypto should be the next generation of distributed computing.
Since 2019, countless projects have treated cryptocurrencies as securities. However, we have taken a less trodden path — emphasizing the monetary nature of cryptocurrencies and helping merchants accept them.
2019–2023: From niche investments to a crypto economy
Before MugglePay, our team worked on a blockchain data analysis product, analyzing identities associated with blockchain addresses. This service, now matured by companies including Chainalysis, was initially challenged. Our Singapore company connected with Stripe and PayPal for payments, but our account was soon frozen due to a user’s complaint over an API issue, leading to a freeze on all our funds in a $5 transaction. This money has not been recovered yet.
This incident led our team to consider: why don’t we accept cryptocurrency payments?
Thus, MugglePay was born, even though MetaMask had just over a million downloads in the Google store at that time. Today, there are 420 million cryptocurrency holders, as A16Z’s report ‘State of Crypto’ suggests, indicating Crypto’s foundation as one of the world’s largest economies.
With 420 million cryptocurrency holders worldwide, compared to the US population of 330 million, and a peak total market value of cryptocurrencies reaching $30 trillion, compared to the US M0’s peak of $6.4 trillion in December 2021, the community of cryptocurrency holders rivals the largest economies.
MugglePay’s mission: To make ‘cryptocurrency’ a currency
Despite the comparable holders and market value of cryptocurrencies to the US dollar M0, the key step to becoming a ‘economy’ is still missing. Cryptocurrency holders cannot complete daily consumption cycles using cryptocurrencies, as most people treat them as securities, not currency. Over the past 10 years, the security nature of cryptocurrencies has been realized, but they are not yet considered currency. As the American economist Hyman Minsky said, ‘Everyone can create money. The problem is to get it accepted.’
Ethereum made the former easy with EIP20 in 2015, but the latter is still in its early stages. It’s easy to buy cryptocurrencies at exchanges or wallets, but difficult to spend or pay for everyday expenses with them. According to Checkout.com’s report ‘Demystifying Crypto Report’, 40% of users aged 18–35 plan to purchase goods or services with cryptocurrencies in 2022, and Visa processed $2.5 billion in cryptocurrency payments in just Q4 2021 alone. The strong demand from consumers for cryptocurrency cards, PayPal, and Visa payments shows a strong willingness to pay with crypto.
The key lies in getting merchants to accept cryptocurrencies, which remains MugglePay’s unchanged mission.
Establishing a positive feedback loop for true Crypto-Native
We are committed to establishing such a positive feedback loop: Merchants accept cryptocurrency → Suppliers/Companies’ employees receive cryptocurrency → Consumers use cryptocurrency to make purchases. The latter has already seen many Web3 developers create a wide range of widely used applications with their exquisite creativity. As for the former, companies like BitPay, CoinPayments, Binance Pay, etc., have been working for a long time, and many merchants can now accept cryptocurrencies, although this phenomenon is not yet as common as treating cryptocurrencies as investment products.
Establishing such a positive feedback loop will enable the realization of a truly frictionless crypto economy. This eliminates the fees and gas costs associated with Fiat onramps and Crypto payment cards and opens up to all new entrants to Crypto, even those who are not yet served by the banking system.
From here to the Crypto-Native new world
If the core feature of a narrow Crypto Native is complete decentralization, then the characteristic of a crypto-native resident is the absence of fiat currency conversion (fiat onramp), achieving borderless and frictionless transactions. Compared to fiat payments, merchants have enough incentives to accept cryptocurrencies:
- 1/10th the cost in cross-border scenarios Instant settlements
- No chargebacks
- No risk of fund freezing
- Available to all 420M cryptocurrency holders
Over the past two years, whether it’s the US’s FTX or the exchange collapses in Singapore and Hong Kong, have led to unprecedented strict regulation of cryptocurrency financial institutions. Financial institutions need strict regulation because they hold others’ funds, creating a significant risk of misusing customer assets. But isn’t blockchain inherently about owning your assets?
We have had lengthy discussions with some users and regulatory authorities, conducting in-depth research on underlying technologies and future product models in the past two years. Although restrained in publicity and product updates, we are more confident than ever in the path ahead. Therefore, we launched a decentralized settlement protocol and the associated Web3 identity login. According to MAS’s payment act, payment institutions are financial institutions that custody and process user funds, and we qualify for an exemption.
Thus, we are no longer a payment institution as defined by regulations, but a technology provider, a building block on the blockchain ledger.
Helping AI and gaming companies advance to the Web3 new land
With the release of ChatGPT, its developed interface allows many developers to build on it, spawning many creative and vibrant AI startups.
LegalNow is one of them. The mismatch between traditional legal high fees and broad user demand is a longstanding problem in the legal industry. Data shows that nearly 90% of parties in global civil litigation cannot afford legal representation, and the percentage is likely higher for everyday business matters in small and medium-sized enterprises. LegalNow aims to address these pain points with AI and accepts cryptocurrency payments through MugglePay. Making legal services affordable for small businesses and accessible to everyone is the essence of Web3.
DeepLink in the gaming field is also practicing the Web3 spirit, committed to redefining gaming based on blockchain technology. What once required a $2000 console can now be achieved with just $200, significantly reducing the cost of obtaining an ultimate gaming experience and making gaming accessible to everyone. DeepLink also accepts cryptocurrency through MugglePay.
In addition, we have partnered with PartnerR, a PR company focused on technology and gaming, to help startups in the gaming and AI sectors with everything from payments to cold starts.
The free flow of money will maximize the magic of the free market, helping people cooperate to acquire wealth, as the mainstream way to gain wealth is to meet others’ needs. We create more interesting magic through collaboration, bringing growth to the world.
Crypto Native payment service providers offer merchants the option to pay with Crypto, giving everyone an additional choice and enhancing payment freedom. Full freedom of choice will make the best currency the most mainstream payment option. We provide the infrastructure for merchants and users to vote with their feet, and the best currency will be more widely used.
MugglePay is generating freedom and looks forward to collaborating with startups, stablecoins, exchanges, and partners in the payment ecosystem to establish a Crypto-Native positive cycle. Join the alliance. Contact our founders NOW!
