Source: Midjourney
We’ve been talking about it for years.
There have been countless startups on the Web3 side, all claiming to be the one to make it happen. But mainstream blockchain payments just aren’t here yet. Why is that? Is it a problem with the crypto community, the mainstream’s understanding of what crypto is? The business community and their hesitancy to accept a new payment type? Well…yes. It seems to be all of that, which is why this seemingly incredible technology hasn’t caught on.
The question then is, what can we do to fix this? The good news is that we’ve seen some of the more spectacular failures and can learn from them. We know some of the fears, misunderstandings, and incentives that drive the behavior of consumers and businesses. Let’s focus on these and see if blockchain payments are ready to serve this market. It turns out that more and more blockchain payment platforms have elements of what it will take, and the decentralized payment system Nimiq may just have all the pieces.
Blockchain Payments Should Be Great. Why Aren’t They?
The promise of blockchain payments is really incredible. Fast, easy, borderless, tiny fees, and secure accounts. What’s not to like? Well, there are a few other problems that hamper these features, and there are a few other big issues that prevent customers from experiencing the benefits.
There are a growing number of blockchain platforms that are developing more seamless payment processes that mimic the debit/credit card. Some even have a card as the primary transaction device. This goes a long way to reach those who like the traditional use of cards, because it acts in many ways just like another card. But this also is the problem. Many people who use traditional payment cards and are comfortable with the system simply aren’t looking for anything new. They like this system, it works for them. And the vast majority have knowledge on crypto from what they have heard from mainstream media sources. These sources aren’t necessarily providing false information, but they are focused on topics like crypto scams, the price of Bitcoin (without explaining how that might affect the average person), and the “crypto bro” stereotype. This doesn’t leave a lot of goodwill for an approachable payment system with real benefits.
Businesses too have been hesitant toward crypto payments. While the crypto card, when partnered with a traditional banking company, can act with a business’ current system, that doesn’t help if the people don’t want those cards. Why would businesses care about crypto payments? Because the fees for traditional card payments is about 3%, which can make or break a business’ profit margin. If you asked a business if they would like to get rid of this 3% weight around their neck, they would clearly be interested. This is the key benefit of blockchain payments for businesses, so the crypto community needs to make the setup for payments more beneficial and cheaper than the card fees they currently pay.
Finally, you have people who are somewhat interested in trying a new payment type, either out of curiosity, a distrust of traditional systems, or because they are already involved in crypto. This group is growing but not enough to push the mass adoption for payments. However, if you combine this group with the average customer, and show them real benefits of switching, then you might be able to make real change. Since many people sign up for rewards programs, this might be easier than we think.
The focus of selling the crypto payment idea should focus on these rewards. The average customer doesn’t care about security and doesn’t care about low fees. This is because the average customer already feels secure with their traditional payments, and is accustomed to not paying fees when they use their card (after all, that fee is paid by the business). What will drive change is offering enough of a reward to overcome the discomfort the average person will undergo when switching to crypto payments. This, and ensuring that the security and fees are as good as traditional methods.
Making the Change
As mentioned above, the non-profit and open-source project Nimiq might be closest to making this happen, for a few key reasons. First, they have all the necessary elements in place. The platform is secure, it has gas abstraction to simplify and minimize fees, and its potential for scalability is set to go. Because it has a Proof-of-Stake algorithm meant for payment functionality, it can give 1-second confirmations and over 1,000 TPS. Again, while the Web3 crowd might be impressed by these metrics, the average consumer won’t be. That’s okay though, because the experience they will have will at least match the convenience of traditional payments, and that is an absolute must for paving the way to adoption.
What consumers will care about, however, are the rewards and what it takes to get them. Many marketing studies show that we as humans are incredibly fickle about signing up for new things, even when they have rewards. It has to be very easy and quick, or we will bail. Nimiq boasts a less than 20 second onboarding time, which could actually be its greatest advantage. After all, people can’t get excited about blockchain benefits if they never complete the sign-up process. Once they do, however, Nimiq has a few other tricks that will help consumers in the short term, and will help scale up the network in the long term. Most notable of these is a high yield staking program, of up to 15% APY. This is a massive return compared to traditional savings accounts, and is easy to understand since many of the concepts are similar to CDs or other investment instruments.
In the long run, the system’s ability to create censorship resistance, and the fact that it includes an in-wallet node, the network will become significantly more robust the more it grows. Rather than straining under its infrastructure, like traditional banks who grow too quickly, the network was made to grow fast. As users join easily, see the rewards quickly and clearly, and experience a secure and convenient process, mass adoption of crypto payments finally has a chance to succeed.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2025/02/are-we-ready-for-mainstream-blockchain-payments