Web3 Payments: Reshaping the Landscape of Cross-Border Payments

1. The Cross-Border Payment Market Continues to Grow

The cross-border payment market is experiencing explosive growth, and it is expected that related payments will reach 250 trillion dollars by 2027. The frequency of consumer cross-border payments is constantly increasing, with 30% of people shopping overseas through cross-border e-commerce weekly, 45% sending and receiving remittances monthly, and 66% traveling abroad annually.

However, consumers have not yet formed fixed habits in cross-border payments. They use an average of 4 different payment methods, and only 16% of consumers consistently use the default method. Currently, it seems that no single payment method can fully meet consumer needs, but security and reliability are the primary considerations.

2. Main Cross-Border Payment Scenarios and Pain Points

2.1 Cross-border E-commerce

About 589 million people participate in cross-border e-commerce transactions, with 72% purchasing physical goods through mainstream online retailers. Payment methods primarily include credit cards, debit cards, or digital payment services, but habits vary by country.

2.2 Cross-border Travel

Two-thirds of respondents have cross-border travel experience, and 62% use credit or debit cards to book trips. There are differences in preferences among different countries, such as Canada favoring credit cards, while Brazil has a lower proportion of credit card usage.

2.3 Cross-border remittance

40% of respondents have sent or received remittances, with bank transfers or wire transfers being the most common methods. Countries with a high number of immigrant workers, such as the UAE and the Philippines, have the highest remittance ratios.

3. Web3 Payment Solutions

3.1 Web3 Transformation of Cross-Border E-Commerce

Bridge, as a stablecoin infrastructure acquired by Stripe, provides stablecoin API tools to help businesses accept stablecoin payments and facilitate rapid global fund transfers.

Gate Pay starts from the exchange, providing B2B cryptocurrency payment solutions, including acquiring, issuing, and fiat deposit and withdrawal services.

3.2 Web3 Transformation of Cross-Border Travel

Travala.com, as a cryptocurrency-native travel booking platform, supports payments in over 100 cryptocurrencies and offers loyalty rewards through the AVA token.

For small transaction scenarios such as offline corner coffee shops, Web3 payments can significantly reduce merchant fees by directly settling through blockchain and stablecoins using QR code scanning.

3.3 Web3 Transformation of Cross-Border Remittances

BCRemit uses USDC to provide low-cost and fast remittance services for Filipino workers, with fees of only 1%, far lower than traditional channels.

MoneyGram, through its MoneyGram Access product, utilizes the Stellar blockchain and the USDC stablecoin to achieve seamless conversion between digital assets and cash, addressing the "last mile" delivery issue.

4. Future Prospects of Web3 Payments

Morph Pay demonstrates the potential of Web3 payments, offering not only payment functionalities but also integrating diverse services such as DeFi and ecological governance. This blockchain-based solution is building a new type of financial service complex, covering multiple areas including payments, savings and investment management, lending, and remittances.

In the future, Web3 payments are expected to become a key application scenario that reaches over 90% of internet users, promoting the widespread adoption of cryptocurrencies and blockchain technology.