TL;DR: The global payments industry is booming, with revenues projected to reach $3.2 trillion by 2027. This dynamic sector is evolving rapidly—from traditional banking to digital payments, now led by crypto payments. With lower costs and faster processing, crypto is disrupting traditional systems—especially in cross-border payments and emerging payment models—with immense potential to reshape the market.

Key Points

• The global payments market is valued at $2 trillion and growing rapidly.

• B2B payments dominate, while small-value cross-border payments are the fastest-growing segment.

• Cross-border transaction volumes and revenues continue to rise.

• There are over 560 million crypto users worldwide; stablecoin supply exceeds $160 billion.

• Crypto payments offer faster, cheaper cross-border solutions.

• Smart contracts and DeFi unlock innovative payment models.

01 Current Payments Industry Landscape

Overview

The payments industry is massive and fast-growing, expected to generate $3.2 trillion in revenue by 2027.

Global cross-border payment volumes exceeded $150 trillion in 2022, growing at 17% annually. Revenues reached $240 billion, with C2B and C2C cross-border payments accelerating from single-digit to double-digit growth since 2021.

Changing Consumer Payment Behavior

As technology advances, consumers favor instant, convenient, and secure payment methods over traditional bank accounts. Businesses respond by tailoring payment solutions across use cases:

• C2B: Online shopping and in-store payments.

• B2B: Vendor payments, consultancy fees, and other inter-company transfers.

• C2C: Local and cross-border peer transfers.

• B2C: Corporate payments to consumers, such as payroll.

Industry Trends

Rise of Small-Value Cross-Border Payments

Small-value cross-border payments are key growth drivers. SMBs and freelancers demand fast, low-cost options that traditional banks often fail to provide.

In the U.S., B2B payments represent 70% of the market. Small transactions under $1,000 have grown 300% on SWIFT gpi since 2017, outpacing larger transfers. Even in B2B, 80% of transactions are under $100,000, underscoring strong demand for efficient small-value payments.

Emerging Industries & Alternative Payments

Digital wallets and alternative payment methods gain traction, expanding revenue for payment processors.

Payment Embedding and Localization

Embedding financial services directly into products is a growing trend. In 2023, 74% of companies plan to offer embedded payments, though adoption varies by region.

02 Crypto Payments: Status and Opportunities

Growth of Crypto Payments

Over 560 million crypto users globally; stablecoin issuance exceeds $160 billion. Stablecoins dominate crypto payments for price stability. Average remittance fees with stablecoins range 0.5%-3%, far below traditional costs. Some Layer 2 networks offer near-zero transfer fees, though extra costs may apply.

Smart Contracts as Payment Enablers

Smart contracts turn crypto into programmable money, enabling use cases such as:

• On-chain recurring payments: Automated, scheduled payments on blockchain.

• Conditional payments: Triggered by on/off-chain events (e.g., insurance claims).

• Decentralized Finance (DeFi): Lending, interest, tokenization without intermediaries.

• Asset tokenization & auto-royalties: Real-world assets tokenized; royalties auto-paid per sale (e.g., musicians earning instantly).

• Custom B2B payments via smart contracts: Businesses can execute highly tailored payment flows—such as payments based on delivery, acceptance, or other predefined terms—enhancing contract execution and minimizing delays or disputes.

Business Models in Crypto Payments

• Enterprise (B2B) market leads due to volume and easier adoption.

• Crypto payments expanding beyond crypto natives into traditional markets.

• Hybrid models (virtual accounts/cards) ease fiat-crypto transition.

License Networks: Critical Infrastructure

A solid license network is vital for serving traditional clients and scaling. For on/off-ramps, licenses ensure legal compliance and build market trust. Since crypto-to-fiat conversions face strict multi-jurisdiction regulations, most rely on licensed base-layer gateways for compliant, interoperable operations.

BVNK: Building a Global Licensing Network for Crypto Payments

Licensing Coverage

• BVNK holds an Electronic Money Institution (EMI) license in the UK, enabling it to provide regulated crypto and fiat payment services within the country.

• The company also holds licenses in South Africa, Malta, Spain, and the Netherlands, further strengthening its global regulatory presence.

Key Metrics

• Annualized transaction volume: $8 billion

• $40 million raised in 2022 at a $340 million valuation, led by Tiger Global

Positioning & Strengths

• BVNK’s robust licensing framework enables it to operate compliantly across multiple highly regulated jurisdictions.

• Its global footprint and strong compliance capabilities have attracted a diverse enterprise client base—from traditional finance to crypto-native businesses.

Triple A: Building the Infrastructure for Global Crypto Payments

Licensing Coverage

• Singapore: Licensed Payment Institution, supporting crypto and fiat payments across Southeast Asia

• European Union: Payment Institution license in France, ensuring full compliance across the EU

• United States: Registered as a Money Services Business (MSB) with FinCEN, meeting U.S. regulatory requirements

Key Metrics

• Serves over 20,000 businesses, including Grab Pay, Farfetch, Razor, and Reap

• Supports major cryptocurrencies: USDT, USDC, ETH, BTC

• Raised $10 million in funding, led by Peak XV (formerly Sequoia India)

Positioning & Strengths

• Triple A capitalizes on its regulatory framework to establish a robust and compliant global crypto payment infrastructure.

• Its network supports large enterprises across e-commerce, finance, and emerging tech sectors—especially in crypto-friendly regions such as Southeast Asia and Europe.

Zero Hash: The Compliance Layer for Crypto Payment Infrastructure

Licensing Coverage

• Zero Hash holds Money Transmitter Licenses across most U.S. states and operates compliantly in 16 countries worldwide.

• Its licensing framework allows it to function as a base-layer gateway, enabling payment platforms and fintech companies to offer regulated crypto payment services.

Key Metrics

• Clients include leading fintech and crypto platforms: Wirex, MoonPay, MoneyLion

• Total funding: $165 million

• Backed by investors such as Point72 and Bain Capital

Positioning & Strengths

• Zero Hash focuses on underlying payment infrastructure, offering compliance-as-a-service to platforms expanding into multi-jurisdictional markets.

• Operating via a B2B model, it enables partners to launch fully compliant crypto payment solutions with minimal regulatory overhead.

Crypto Payments Application Layer: Current Landscape and Future Directions

The application layer in crypto payments primarily serves users within the crypto ecosystem. It includes solutions that help merchants accept crypto payments, issue virtual cards, and provide middleware infrastructure supporting stablecoins. As technology and regulatory frameworks evolve, new infrastructure projects continue to emerge, driving greater stablecoin adoption and integration into traditional payment systems.

Payment Gateways: Bridging Crypto and Traditional Finance

Enable merchants to accept crypto and fiat; help crypto projects with fiat processing. Features:

• Multi-crypto and payment channel support (cards, bank transfers).

• Plug-and-play toolkits for e-commerce integration.

• Fast settlement via stablecoins, reducing cross-border costs.

Virtual Cards:

Issue Visa/Mastercard virtual accounts and debit cards, linking crypto to fiat payments. Users pay in crypto; merchants settle in fiat, boosting crypto usability.

Stablecoin Infrastructure:

Middleware enabling developers and enterprises to integrate stablecoins for payments, clearing, cross-border transfers. Includes:

• APIs for rapid stablecoin integration.

• Tools for complex flows (auto settlements, multi-party).

• On-chain/off-chain data bridges to boost efficiency.

03 Leading Projects

MoonPay: Crypto Payment Gateway for Consumers & Enterprises

MoonPay offers cryptocurrency trading and payment solutions to both retail and enterprise users, enabling crypto and NFT purchases via traditional card networks. Its revenue model relies on asset price spreads and transaction fees, serving both on-ramp and off-ramp needs while providing integrated payment services to partners.

Key Metrics

• Available in 180 countries, supporting over 50 cryptocurrencies and 30 fiat currencies

• Over $6 billion in cumulative crypto purchases

• More than 20 million registered users, establishing MoonPay as an industry leader

• Partners include MetaMask, PayPal, Venmo, Mastercard, among others

Funding

• Completed a $555 million Series A in 2021, valuing the company at $3.4 billion. Funding led by Tiger Global and Coatue, fueling global expansion.

Compliance

• Holds multiple payment licenses across the UK, Ireland, Italy, and the US. In unlicensed regions, MoonPay partners with other gateways to ensure compliant operations, a flexible strategy supporting its worldwide growth.

Competitive Advantages

• Extensive global reach with multi-currency and fiat support for maximum convenience

• Strong partner ecosystem driving deep integrations across wallets and payment platforms

Reap: Multifunctional Enterprise Payment Platform

Reap delivers payment solutions tailored for businesses, ranging from corporate credit cards to virtual bank accounts. Key offerings include:

• Reap Card: Enables bill payments with fiat or crypto, offering flexible repayment

• Reap Pay: Facilitates crypto and fiat transactions within virtual bank accounts

• API Solutions: Allows enterprises to customize payment features, including card issuance

Key Metrics

• Over $2 billion in processed payments, covering stablecoins and fiat

• Competitive fees at 0.8% plus SWIFT charges tailored for enterprise needs

• Serves both traditional companies and crypto firms, with partners such as DBS, Travala, Hashkey

Funding

• Raised $40 million in Series A to expand its payment network and service portfolio.

Compliance

• Holds payment licenses in Hong Kong and Singapore, and collaborates with other gateways to cover regions lacking direct licensing.

Competitive Advantages

• Clear focus on enterprise users, especially multi-currency and billing management

• Comprehensive product suite offering end-to-end enterprise payment solutions

Helio: Merchant Crypto Payment Solutions

Helio provides settlement solutions supporting both crypto and fiat payments, including card payments and bank transfers. Its platform supports over 100 cryptocurrencies, spanning Solana, Bitcoin, Ethereum, and various Layer 2 networks. Helio integrates payment plugins for Shopify and WooCommerce, enabling traditional e-commerce merchants to easily accept crypto payments.

Key Metrics

• Serving over 6,000 merchants with more than 1 million buyers

• Annual transaction volume exceeding $1 billion, positioning Helio as a key player in crypto e-commerce payments

• Partners include Solana, Magic Eden, Polygon, The Block

Funding

• Secured $3.3 million seed funding from Lightspeed Faction and Solana Ventures to accelerate tech development and market growth.

Compliance

• Currently, Helio has not publicly disclosed licensing but mainly operates in crypto-friendly jurisdictions.

Competitive Advantages

• Multi-chain support, leveraging efficient blockchains like Solana for competitive payment services

• Developer-friendly, offering easy integration tools that lower technical barriers for merchants and platforms

03 The Future of Crypto Payments

The crypto payments space is evolving rapidly, with key growth opportunities in cross-border payments, DeFi-powered payment innovations, and optimizing existing payment infrastructures. These areas promise to cut costs, speed up transactions, and unlock new business models.

Mainstreaming Cross-Border Payments

Advantages of Crypto Payments

Cross-border payments via crypto networks dramatically boost speed and reduce costs.

• Faster settlements: Crypto payments eliminate the complex intermediaries of traditional banking, enabling funds to move across borders within minutes—ideal for real-time transactions.

• Lower fees: Stablecoin-based cross-border transfers charge just 0.5–3.0% in fees, significantly cheaper than traditional remittance services.

Market Demand

The cross-border remittance market holds massive growth potential, especially in developing regions where low-cost, fast payment solutions are critical.

• Micro-remittances: Transactions under $200 dominate, making cost efficiency a top priority.

• Stablecoins as a bridge: Using stablecoins minimizes currency volatility risk, providing users with a safer way to store and transfer value.

DeFi-Powered Payment Innovations

DeFi Market Potential

DeFi protocols currently lock over $100 billion in assets and sustain daily trading volumes around $6 billion, forming a robust infrastructure ecosystem that fuels payment innovation.

Emerging Product Opportunities

• PoS Yield Integration: Proof-of-Stake blockchains generate staking rewards that secure the network and offer holders risk-free returns. This model can be embedded into payment products, allowing users to earn yields while transacting.

• DeFi Payments as a Service (PaaS): Businesses and consumers can pay directly via decentralized protocols, bypassing traditional gateways while benefiting from on-chain transparency and low fees.

Use Cases

• Stablecoin Settlements: Integrating stablecoins into payment flows enables flexible solutions for cross-border remittances and supply chain finance.

• Incentivized Payments: Payment models that reward users or enable participation in on-chain governance add value beyond basic transactions.

Improving User Experience & Business Models

Current Challenges

In online payment ecosystems, making payments is often easier than receiving them.

• Cumbersome payment flows: Creators typically rely on third-party platforms like Buy Me a Coffee to receive funds, while supporters must provide complex details like credit card info to complete payments.

• Real demand for payouts: The success of platforms like Buy Me a Coffee highlights strong creator demand for streamlined online payment acceptance. Over a million users have set up pages for tips, with similar services emerging rapidly.

Crypto Payments as a Solution

Crypto payments simplify C2C and B2C transfers:

• Seamless experience: Users pay or receive funds by scanning a QR code with their crypto wallet—no need for complex accounts.

• Lower barriers: No credit cards or third-party accounts needed, making crypto payments more accessible globally.

Potential Business Models

• Creator economy: Crypto payments streamline fund flows between creators and fans, boosting monetization.

• B2C payment innovation: Businesses can attract more consumers by offering smooth on-chain payment experiences.

04 Conclusion

Crypto payments are poised to disrupt global payments with faster, cheaper cross-border transfers and DeFi-powered models. Blockchain, stablecoins, and programmable money unlock new user and business value.

Challenges remain—regulatory compliance, user education, and infrastructure must advance. As ecosystems mature, crypto payments can break barriers and deliver more efficient, secure, innovative payment experiences worldwide.