#Payments17 Aug

Payment Rails and Adoption – Two Sides of the Same Token

Alisa Tkach

Greater payment options and accessibility as a core driver of mass adoption

Greater payment options and accessibility as a core driver of mass adoption

Even for those with little knowledge of the space, crypto has come to be characterised by its high volatility and rapidly shifting complexion. Since Bitcoin’s inception in 2009, crypto has made its way to the mainstream through successively higher bursts of momentum, first gaining the attention of mass media in 2017, and now firmly entrenched following crypto’s latest ascension to a >$2T valuation. 

However, rapid growth introduces fresh challenges. At present, there remains a distinct bottleneck for rapid onramping, particularly when the market is running high. 

For many new entrants, this bottleneck constitutes a lack of options for easy on-ramping. It generally requires aspiring investors to rely on EFTs and SWIFT to deposit funds to exchanges and convert to crypto. This latency (up to 2-3 business days in some instances) presents a major barrier to entry in a market that moves at lightspeed with unprecedented volatility. 

The difference between claiming a good entry or missing the move entirely is often a matter of minutes. It logically follows that many prospective market entrants can be dissuaded by this inconsistent time to finality. Further, time-consuming KYC/AML procedures can be an additional deterrent to aspiring investors.

Access to DeFi & On-Chain Activity

In its present form, accessing Web3 directly requires at least a basic understanding of blockchain technology. Asking non-native investors to create their own wallets, navigate explorers, and understand the dynamics of network congestion is an incredibly challenging undertaking. Additionally, transaction fees during periods of major network activity on Ethereum have eclipsed $400 for simple transactions – effectively pricing out new entrants. 

As seen below, even with gas at a yearly low, transactions still cost in excess of $10. However, the advent of low-latency networks and Layer-2 solutions, coupled with the deployment of ETH 2.0, could go a long way to breaking down these barriers to entry. 

Payment Rails and Adoption pic1

Mercuryo’s Contribution

Mercuryo’s infrastructure is built with a usability-first approach, understanding that user experience is a fundamental driver of mass adoption. Our on- and off-ramps offering is utilised by the likes of Trust Wallet, allowing for speedy onboarding to non-custodial accounts. Moreover, Mercuryo’s expansive currency support includes dozens of fiat options and cryptocurrencies, along with a variety of payment methods, like Apple Pay and Google Pay.

To achieve the common goal of mass adoption, it’s vital that the industry provides everybody with easy access to financial products, regardless of geographical location or means. By integrating with a host of local banks across countries and supporting an ever-growing list of fiat currencies, Mercuryo is taking strides to realise a future with universal, low-cost access to financial services at the forefront of current innovation.

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