Crypto Payments: Taking a Bite from ApplePay's Playbook for Adoption

Cryptocurrencies have transitioned from a fringe asset class to a mainstream phenomenon. However, cryptocurrency-based mobile payments are still lagging behind their traditional counterparts in terms of user experience and functionality. Stijn Paumen, CEO of Helio, a growing crypto payments platform, believes that crypto payments must learn from the success of mobile wallets like Apple Pay to achieve broader adoption.

The Apple Pay Benchmark

While Bitcoin and Ethereum are the pioneers of decentralized finance, their underlying blockchains lack the speed and efficiency to compete with established payment systems. Paumen highlights Apple Pay as the benchmark for crypto payments. "How are you going to beat Apple Pay, where I can just tap my phone and I've paid within three seconds?" he asks.

The emergence of newer blockchains like Solana is starting to bridge this gap, but these solutions are still under development. " Now with the second generation of blockchains like Solana, even though There's a lot of talk about congestion," says Paumen, "but we actually have the engineering resources to figure it out."

Crypto Payments: A Long Way from Pizza Purchases

Founded in 2022 by Stijn Paumen and Jim Walker, Helio was founded with the goal of improving the crypto payment experience, which Paumen describes as dreadful in its early days. "You had 20-minute payment times or payments not being processed at all," he recalls. This sentiment echoes the infamous 2010 purchase of two pizzas for 10,000 BTC – a transaction that marked the early days of crypto payments but was marred by a cumbersome user experience.

Helio's platform caters to both merchants and e-commerce sites, facilitating cryptocurrency payments of all sizes. Currently, the platform processes $30 million in monthly transactions, primarily within the Web3 space. Helio has also made a name for itself within the Solana ecosystem, facilitating the sale of 80,000 Solana mobile phones through its payment plugin.

The platform supports a variety of cryptocurrencies, including Bitcoin, Solana, USD Coin, SPL tokens as well as Ethereum-based payments. Additionally, Helio facilitates ticket sales for events like the Ethereum Community Conference, which connects to their Bizzabo event software. 

Web3 Payments: A Niche Awaiting Mass Adoption

Paumen acknowledges that widespread adoption of crypto payments remains an obstacle.

Paumen notes that progress is expected to proceed gradually, with an increasing number of crypto-curious users adopting Web3 wallets and making payments in their preferred tokens.

Additionally, he emphasizes the necessity for enhancing the onboarding user experience to ensure accessibility for a broader demographic of users.

"We talk about this concept of crypto granny internally," says Paumen. "When crypto granny buys a Bored Ape hoodie for her grandson, she needs to be able to do that without owning crypto, without even knowing what blockchain is."

The Future of Crypto Payments: Decentralization vs Traditional Systems

Looking ahead, Paumen contemplates the possibility of established payment giants like Apple Pay adopting blockchain technology for payment settlements. Nonetheless, he remains a firm believer in the potential of decentralized finance, emphasizing the ability to "send money worldwide without intermediaries, with fast or instant settlement with low fees."

He views the recent partnership between Visa and Solana as a positive signal for the future of crypto payments.

While onboarding major e-commerce platforms is crucial for mass adoption, Paumen also sees potential in integrating crypto payments with streaming services like Vimeo and even creator platforms like OnlyFans.

Bottom Line

Cryptocurrency payments have the potential to revolutionize the way we send and receive money. However, to achieve mainstream adoption, crypto payment solutions must prioritize user experience, improve onboarding processes, and cater to a wider demographic. By learning from the success stories of mobile wallets like Apple Pay and forging partnerships with traditional financial institutions, crypto payments can take a significant bite out of the market share currently held by conventional payment methods.