Crypto Payments - 2018 Snapshot
Another year has passed and the crypto scene became more mature. How close are the current payment solutions to crypto mass adoption though?
We respect everyone who is working on accelerating crypto adoption, however, from an objective perspective, we cannot ignore the flaws that current crypto payment solutions have. We split crypto payments in two categories: Hybrid Crypto payments and Real Crypto payments.
Hybrid Crypto payments
We call them hybrid because they are relying on existing FIAT payment solutions. They make instant crypto to FIAT conversions, but in the end pay with FIAT, using the already existing payment network.
- Big Network: They use an already developed payments network so, theoretically, people can pay with crypto anywhere.
- User Friendly: They use cards, something that people are already used with. User friendly solutions are good at accelerating adoption.
- Their solutions are only theoretical. There are several projects that raised together over $500 million promising to make crypto debit cards, yet the cards are non-existent or in very limited numbers.
- Their existence is dependent on third parties which regard crypto as competition. These ICO’s are unable to provide the promised crypto cards because they rely on FIAT payment networks to provide these cards. These companies are not very keen on helping crypto evolve because they see it as competition. If they wanted a crypto-FIAT card they would just do it themselves.
- A mixture of high fees and centralization. Hybrid crypto payments are not really crypto payments, they are just a solution for better crypto liquidity. In reality, the fees are higher compared to FIAT payments because they still need to keep the FIAT fees, while adding the transaction fees of crypto. This asks the question of where the crypto innovation lies? Who needs a payment method that’s more expensive than FIAT and yet still fully centralized?
Crypto payments are supposed to be cheaper while remaining decentralized.
Real crypto payments.
These payments exclusively use blockchain for value transfer.
- Low Fees. Exclusively using blockchain for value transfers has one big advantage: very low fees. To understand how low the fees are imagine that in October 2018 somebody transferred $194 million worth of Bitcoin with a fee of $0.1.
- Peer to Peer. There is no central power that decides if the payment goes through or not.
- Bad payment user experience. If a tutorial on how to make a simple payment takes 2 minutes, you’re doing it wrong. If people get anxious for the 5 seconds it takes to put the change back in their wallet at the supermarket, imagine how this would feel.
- Bad storage user experience. Using a hardware wallet today is a hardcore experience even for gadget loving people. Calling them wallets is a bit misleading, as you can easily get your money out of your wallet. We should call these crypto vaults or safes.
To conclude, most crypto payment methods feel like trying to sell dial-up to people who are already used to always-on devices and WiFi.
Why is this important to us?
We have set up to Recalibrate Digital Commerce by creating an efficiency driven marketplace powered by blockchain. Don’t you think crypto payments are a really hot topic for us?
What do we need?
If we combine the pro’s of both categories, we get a real crypto payment method which uses cards for payments and user friendly wallets for storage.
What are we going to do about it?
PLENTY! Stay tuned because we’ve been working on something crazy. We literally can’t wait to show you.