Connect with us
Apply Now


Global Payment Methods? Web3 Still Has a UX Problem

If you are brave enough to explore the depths of “CT” (Crypto Twitter), which is still the best place to get information on cryptocurrency, blockchains, and NFTs, you will see a lot of bullish talk about cryptocurrency being ready to supplant fiat currency as the best way to send money around the world. Indeed, you’ll often see videos showcasing how easy it is to, say, pay for a coffee in El Salvador (arguably the world’s most crypto-friendly nation) with Bitcoin. There is some truth to the argument, of course. However, it can ring a little hollow at times when we are told that paying with crypto is easier than with traditional payment methods. 

Overall, web3 – the broad term for the next generation of the internet powered by crypto and blockchains – has a user experience (UX) problem. We are often told, “all you have to do is connect a wallet”, but we know that it’s not always the case in practice. Last year, CoinDesk ran a feature talking about why crypto payments haven’t yet taken off. At its center was the admission that paying with crypto is not yet “tap to pay”, which you can do with almost any other payment method. Consumers like convenience, and crypto is not there yet. Worse still, the experience can be confusing and unreliable. 

Cards and eWallets still dominate online payments 

A good example is the online casino sector. Sure, we know that there are crypto casinos out there, some of which have become relatively popular. But it is still relatively niche. The vast majority of the big casino operators do not accept cryptocurrency. Sometimes that’s down to regulation in certain jurisdictions, but it’s also down to the fact most players are comfortable depositing at a casino with Trustly, PayPal, or more traditional methods like credit cards. All of the previously mentioned options are free, and the games on the casino sites use fiat currency as the denomination, so it’s difficult to make an argument as to why you should connect a crypto wallet in the first place. 

Of course, in saying that, there are benefits to using crypto wallets. Indeed, the point of this article is not to denigrate crypto; rather, our goal is to point out that there is a disparity in the argument that crypto should replace fiat because it is easier to send and receive. You could use PayPal right now to send a friend $100, and you will be certain that it’s going to arrive instantly in their account without any fees. If you have used a crypto wallet before, you will be well aware that it is not always guaranteed to arrive instantly, and there are always going to be network and gas fees. 

Crypto will one day rule supreme 

Still, the peer-to-peer nature of crypto transactions is something to celebrate. We mentioned the example of sending a few bucks to a friend via PayPal there, but if you have ever tried to, say, pay a business in Nigeria when located in the United States, or vice versa? It’s slow and cumbersome, and there are several intermediaries ready to take a cut. If you have the time, research how the process of sending an international bank transfer – the methods used are incredibly outdated. Crypto fixes this, but it must become a little easier in terms of UX. 

It’s worth saying that it’s our view that crypto will one day replace fiat as the primary means of transacting value. But it’s much too early to celebrate that as a done deal. Crypto promises secure, peer-to-peer transactions, at fractions of the cost of sending fiat (for merchants and buyers). But the web3 sector must find a way to make it seamless. At the moment, it’s far from being that. 

Continue Reading

Copyright © 2022 Disrupt ™ Magazine is a Minority Owned Privately Held Company - Disrupt ™ was founder by Puerto Rican serial entrepreneur and philanthropist Tony Delgado who is on a mission to transform Latin America using the power of education and entrepreneurship.

Disrupt ™ Magazine
151 Calle San Francisco
Suite 200
San Juan, Puerto Rico, 00901

Opinions expressed by Disrupt Contributors are their own. Disrupt Magazine invites voices from many diverse walks of life to share their perspectives on our contributor platform. We are big believers in freedom of speech and while we do enforce our community guidelines, we do not actively censor stories on our platform because we want to give our contributors the freedom to express their opinions. Articles are not commissioned by our editorial team, and opinions expressed by our community contributors do not reflect the opinions of Disrupt or its employees.
We are committed to fighting the spread of misinformation online so if you feel an article on our platform goes against our community guidelines or contains false information, we do encourage you to report it. We need your help to fight the spread of misinformation. For more information please visit our Contributor Guidelines available here.

Disrupt ™ is the voice of latino entrepreneurs around the world. We are part of a movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities both here in Puerto Rico and throughout Latin America. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. Disrupt Magazine was designed to give the world a taste of that.