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Elon Musk’s Twitter has fallen into revenue difficulties, hoping to find new sources of revenue outside of the original $5 billion a year advertising business model.
According to a recent Financial Times report, Musk is staking this ambition for revenue growth on the payments business. He has said that he wants Twitter to become a “universal application” that combines information, payments and commerce. As part of the plan, Twitter intends to provide fintech services such as peer-to-peer transactions, savings accounts, and debit cards. Previously, Twitter has been testing the payments business in scenarios like rewarding creators.
An official document shows that Twitter registered as a payment processor with the US Treasury Department in November 2022 and began actively applying in various states for the required licenses for the payments business, which is expected to be complete within one year to meet regulatory requirements. and the compliance needs of Twitter payments.
Notably, the payment system will first support fiat currency payments, but the idea of adding cryptocurrency payments has been included in the initial idea, according to informed sources. With Twitter being the main battleground for the Web3 project’s social media presence and Musk himself being a longtime Dogecoin holder, there is speculation that Musk intends to bring Twitter into the crypto payment business and make payments part of the bigger vision for Twitter.
As a result of this expectation, Dogecoin (DOGE) rallied after the news was released, gaining 10% in 24 hours on increased trading volume. Other crypto payment concept tokens such as $MOB and $ACH etc. made gains of more than 30%.
Crypto Payment Providers Have a Competitive Landscape
Musk’s idea to bring Twitter into crypto payments is not unfounded. While cryptocurrencies are already widely recognized and used, crypto payments are still at a relatively early stage when traditional mobile payments are so well developed. PayPal is currently the world’s largest online payment provider with over 400 million active users worldwide, while MoonPay, the leading payment provider positioned as “PayPal for Crypto,” has only 7 million verified users. . Twitter, with its user base and its natural proximity to Web3, has a lot of room to play.
Cointelegraph Research published a report in 2022 that provides a detailed breakdown of how traditional businesses access crypto payments. The report noted that many well-known companies from various industries, including Subway, PlayStation, AT&T, Home Depot, Whole Foods, and others, have supported the use of cryptocurrencies to receive payments. Certain countries have also given cryptocurrencies the green light along the way, such as El Salvador and the Central African Republic, which have adopted bitcoin as legal tender, and Panama and Paraguay, which may also complete the move in recent years. With the further integration of cryptocurrencies with traditional finance, the acceptance of cryptocurrencies and digital assets as a method of payment has become an inevitable trend.
In addition to the broader perspective of crypto payments due to the increased acceptance of digital assets by companies and businesses, crypto payments also have advantages that traditional payments do not and broader application scenarios. For example, in the cross-border payment scenario, the clearing and settlement efficiency of crypto payment will be much higher than that of traditional cross-border remittance transfer. In some Latin American countries with severe currency devaluation, the decentralized crypto-financial system is more stable than the local fiat currency system, which has generated high demand for crypto payments.
At present, the players involved in crypto payment can basically be divided into traditional payment giants, centralized exchanges, and crypto payment service providers. Traditional mobile payment service providers such as Stripe and Apple Pay have more mature technology and may cooperate with exchanges or third-party service providers to provide or adopt APIs for deposits and withdrawals. Exchanges like Binance and Coinbase cooperate with centralized card organizations like Visa and MasterCard to issue co-branded credit cards and help users use credit cards to spend. Crypto payment providers like MoonPay, BitPay, Ramppay, Alchemy Pay, Transak and others are native Web3 crypto payment players, each having their own characteristics with different underlying payment and positioning protocols.
Although the crypto payments market is still at an early stage and far from forming monopolies, many players have already entered and established themselves in this field. With the foreseeable future of traditional giants like Twitter setting their sights on this battlefield and fiat currencies gradually flowing into the cryptocurrency market, players in the field are facing a more competitive situation.
Alchemy Pay exemplifies a quality modern payment service with 5 years of crypto experience
Among many crypto payment products of its kind, Alchemy Pay does not have an outstanding reputation, but it has earned a solid place in the crypto payment landscape with its quality product and deep industry experience. The Financial Times reported that Elon Musk’s company has begun applying for regulatory licenses in US states. Forbes award-winning fiat cryptocurrency pioneer Alchemy Pay has already begun this process and currently owns its MTL and is is in the middle of the MSB process there. As a fiat-crypto payment gateway with on-ramps, off-ramps, NFT payment, and a crypto payment system, a company like Alchemy Pay is making its payment methods future-proof.
As a crypto payment gateway that bridges Web2 and Web3, the quantity and quality of access to local channels is an important criterion for testing the ability of payment service providers. More local payment channels mean users have a broader choice and can help users complete transactions using their most familiar payment methods, enabling seamless transfer of various tokens on the blockchain to fiat currency or vice versa . Alchemy Pay has made great progress in localized payment channel access and has built up an excellent user reputation and brand influence in this area. So far, Alchemy Pay has partnered with more than 300 local payment channels and served millions of users from Southeast Asia, Latin America, and SEPA area.
In terms of market strategy, Alchemy Pay places great importance on reaching and expanding into emerging markets, which is one of the elements that sets it apart from other crypto payment providers. Due to imperfect financial systems in Southeast Asia, Latin America and other regions, accompanied by high fiat currency inflation and underdeveloped cross-border payments, these emerging markets are the most promising regions to promote crypto payments. When looking at market strategy, putting these regions into perspective means more opportunities. Based on the information disclosed on the official website, Alchemy Pay has accessed local payment channels in the Philippines, Indonesia, Vietnam, Singapore, Brazil, Peru, Chile, Colombia and other regions, covering more than 410 million users. Compared to other crypto payment products such as MoonPay, Ramp.network, Mercuryo and others, Alchemy Pay is one of the few payment service providers to include Latin America as a key service area while also focusing on providing global services such as Visa and MasterCard. access. This clear market focus also fully demonstrates his vision to thoroughly design the field of crypto payments.
Third, compared to other veteran crypto payment providers, Alchemy Pay has its advantages as a native crypto player. For example, US online payment giant Stripe began pivoting to cryptocurrency payments in 2022, announcing that it would quickly serve 180 countries to purchase 180 cryptocurrencies. However, Stripe still belongs to the traditional Web2 application, which does not require as much effort as other native players to break the ice in the native crypto payment landscape. On the contrary, the native crypto payment players represented by Alchemy Pay better understand the needs and pain points of the cryptocurrency industry and can provide convenient access solutions along with real scenarios.
At the same time, the position of native Web3 players makes Alchemy Pay more connected with other cryptocurrency players. For example, Alchemy Pay has been integrated into Binance Pay and Solana Pay, and its users can also use the services provided by Alchemy Pay. Alchemy Pay also supports the use of ENS domains to complete cryptocurrency purchases, taking into account the experience and needs of native cryptocurrency users.
Founded in Singapore in 2018, Alchemy Pay is a payment gateway for businesses, developers, and users to seamlessly connect cryptocurrencies with global fiat currencies. It combines cryptocurrency systems with fiat financial systems, allowing users to seamlessly switch between cryptocurrencies and fiat currencies in both directions through the On-Ramps and Off-Ramps solutions it offers, and the platforms and dApps can also use plugins and API to integrate. In addition, it provides other services such as NFT Checkout, which also helps users to buy NFT with fiat currency, expanding the scenario of fiat cryptocurrency payments. More than 300 fiat currency payment channels have been added in Alchemy Pay On-ramp solution to support Visa and MasterCard payments in 173 countries and more than 30 fiat currencies, and has served hundreds of traditional web3 party businesses.
Alchemy Pay has reportedly recently added support for buying cryptocurrency via fiat using major payment methods like Apple Pay and Google Pay, and Visa and MasterCard, the two largest bank card organizations in the world, have officially certified as a provider of payment services. , which provides a high level of security and compliance support for your fiat currency transfer business around the world. As a well-established crypto payment service provider, its steady development over the years has also gained recognition from the secondary market. As of press time, its native $ACH token has gained over 75% in 30 days.
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