The crypto payment sector has quietly emerged as one of the most dynamic niches in the Web3 ecosystem. Since 2023, a wave of high-profile funding announcements has spotlighted this space, with backing from notable investors and institutions. As digital asset adoption grows, the demand for seamless, real-world utility is pushing crypto payments into the mainstream — not just as a speculative tool, but as a functional financial layer bridging Web2 and Web3.
👉 Discover how crypto payments are reshaping global commerce today.
What Are Crypto Payment Applications?
Crypto payment applications enable users to spend digital assets like Bitcoin (BTC), Ethereum (ETH), and USDT directly for goods and services — both online and offline. Unlike traditional transactions that rely on centralized banking rails, these tools operate on blockchain networks, offering faster settlement, lower fees, and greater transparency.
For example, users can walk into a physical store and pay with USDT via an app like Oobit, instantly converting their crypto into local currency at point-of-sale. On e-commerce platforms, such tools eliminate foreign exchange friction, making cross-border purchases smoother than ever.
These apps also simplify onboarding for new users. Instead of navigating complex exchange registrations or wallet setups, individuals can use credit cards or bank transfers to buy crypto instantly within the app — a feature especially appealing to mainstream consumers.
The Rise of Oobit: From Exchange Services to Payment Innovation
In early February 2025, Oobit announced a $25 million Series A round — one of the largest public financings in the Web3 space that year. Backed by Tether’s investment arm, Titan Fund (under CMCC Global), 468 Capital, and Solana co-founder Anatoly Yakovenko, the funding signals strong institutional confidence in crypto payments.
Interestingly, Oobit wasn’t always focused on payments. Public records indicate its initial operations centered around technical and operational support for cryptocurrency exchanges. Whether it will fully pivot away from those origins remains unclear, but the strategic shift toward consumer-facing payment solutions reflects broader industry trends.
This transformation underscores a key insight: infrastructure projects are evolving to meet end-user needs. As adoption matures, utility — not just technology — becomes the priority.
Leading Players in the Crypto Payment Space
While Oobit gains momentum, Moonpay remains one of the most recognized names in the sector — often dubbed the "PayPal of crypto." With a $550 million seed round and aggressive global compliance efforts, Moonpay enables users to purchase digital assets using familiar methods like credit cards and mobile wallets.
Its vision? To bring 1 billion people into the crypto economy by 2030.
Despite its first-mover advantage, Moonpay now faces growing competition. Startups are racing to capture market share by improving user experience, expanding merchant networks, and integrating stablecoins for everyday spending.
Key 2023–2025 Funding Milestones in Crypto Payments
The sector’s momentum is reflected in a series of major funding events:
- Code raised $6.5 million in a seed round led by M13 and Union Square Ventures.
- TipLink secured $6 million from RedSequin Capital, Multicoin Capital, Solana Ventures, and Circle Ventures.
- dtcpay, a Singapore-based provider formerly known as Digital Treasures Center, closed a $16.5 million Pre-A round backed by prominent regional investors.
- CityPay attracted over €2 million in seed funding, including cryptocurrency investments from Tether.
- Mesh, rebranded from Front Finance, raised $22 million in an A round led by Money Forward, with additional participation from Galaxy and Samsung Next. Notably, PayPal Ventures invested $5 million via its PYUSD stablecoin and added $1.5 million in cash.
- Triple-A, a crypto payment gateway, raised $10 million in an A round led by Peak XV Partners and Shorooq Partners.
These figures highlight investor belief in long-term scalability — even amid regulatory uncertainty.
Why Crypto Payments Matter: Use Cases and Advantages
Crypto payment tools solve real-world problems:
- Cross-border efficiency: Traditional international transfers take days and incur high fees. Blockchain-based payments settle in minutes with minimal cost.
- Financial inclusion: Unbanked populations can access digital financial services through smartphone-enabled crypto wallets.
- Merchant benefits: Lower transaction fees compared to credit card processors; reduced chargeback risks.
- User convenience: Instant conversion between fiat and crypto without leaving the app.
Moreover, businesses in tourism, freelancing, and global remittances are increasingly adopting crypto payments to streamline operations.
👉 See how borderless payments are unlocking new economic opportunities worldwide.
Challenges Ahead: Regulation and Market Readiness
Despite the promise, significant hurdles remain.
Regulatory scrutiny is intensifying. The International Clearing Bank (BIS) warned in mid-2024 that widespread use of stablecoins could threaten financial stability if not properly managed. Governments are concerned about illicit finance risks — such as the misuse of crypto in illegal drug trades — prompting calls for stricter oversight.
Examples include:
- U.S. Senator Elizabeth Warren advocating for legislative action to block crypto use in fentanyl transactions.
- Bitwage halting USDC salary disbursements to U.S. residents due to compliance concerns.
- Bali cracking down on tourists using crypto to pay for hotels and restaurants.
These cases illustrate the delicate balance between innovation and regulation. As a hybrid of Web2 finance and Web3 technology, crypto payment platforms must navigate complex legal landscapes across jurisdictions.
Market Outlook: Will Crypto Payments Go Mainstream?
Industry reports suggest strong potential. A joint white paper released in March 2024 by Ripple and the U.S. Faster Payments Council found that nearly 300 payment leaders across 45 countries agree: blockchain integration will make payment systems faster, cheaper, and more transparent — especially for cross-border settlements.
However, mass adoption hinges on three factors:
- Regulatory clarity
- Merchant acceptance
- User-friendly design
Until then, the primary user base remains experienced Web3 traders rather than crypto newcomers. Wallets and exchanges still serve as entry points; crypto payments function more as an advanced utility layer.
That said, as ecosystem maturity grows, so does the potential for network effects — where increased usage drives further adoption.
FAQ Section
Q: What are the core benefits of using crypto for payments?
A: Faster settlement, lower fees (especially internationally), increased privacy, and reduced dependency on traditional banks.
Q: Can I use crypto to pay at regular stores?
A: Yes — through apps like Oobit or Moonpay that partner with merchants or offer crypto-linked cards enabling point-of-sale spending.
Q: Are stablecoins safe for daily transactions?
A: Generally yes — especially widely adopted ones like USDT or USDC, which are pegged to fiat currencies and regularly audited.
Q: Do I need technical knowledge to use crypto payment apps?
A: No — most modern platforms are designed for ease of use, allowing purchases via credit card or bank transfer without deep blockchain knowledge.
Q: How do governments view crypto payments?
A: Views vary — some countries encourage innovation with sandbox programs; others impose restrictions due to concerns over money laundering or tax evasion.
Q: Will crypto replace traditional payment methods?
A: Not immediately — but it’s likely to become a complementary system, particularly for cross-border transactions and underbanked regions.
👉 Start exploring secure, instant global payments with next-gen tools now.
Final Thoughts
Crypto payments represent more than just a technological upgrade — they signal a fundamental shift toward decentralized financial autonomy. While challenges around regulation and scalability persist, the combination of strong funding, growing use cases, and rising institutional interest suggests this niche is poised for expansion.
As infrastructure improves and user trust builds, crypto payment applications may soon move from fringe experiments to essential components of the global financial system. For forward-thinking users and investors alike, staying informed isn’t optional — it’s strategic.
Keywords: crypto payment applications, blockchain payments, USDT payments, cross-border crypto transactions, Web3 finance tools, digital asset spending, stablecoin usage, Oobit and Moonpay comparison.