Lucas Hoffman, CTO at
Q: The cryptocurrency market is going through a big upswing again. Bitcoin recently reached a new high, and other cryptocurrencies are also doing well compared to last year. Has this affected the crypto processing market? How did the volume of payments change? This question is not about the dollar equivalent of TRX volume, which obviously went up just because the exchange rate grew sharply.
0x: The number of payments made through crypto payment gateways has been growing lately every year. Of course, when the price of Bitcoin goes up, more businesses become interested in accepting crypto payments. But even during the tough times for crypto in 2022-2023, we saw more people using crypto payment gateways.
Our data shows that in the first quarter of 2021, over 200 thousand transactions went through 0xProcessing. By the end of the first quarter of 2022, even though Bitcoin's price dropped, we had already processed 1.5 million transactions. By the end of 2023, over 3.5 million transactions had been completed through 0xProcessing.
By this April, 0x processed over 4.5 mln of transactions. The number of merchants has risen to 400+. This shows that more and more people want to use crypto for payments, both businesses offering it on their websites and users making the payments.
Q: 0x was launched in 2020 supporting 5 blockchains and 15 coins. Now, it supports 13 blockchains and over 50 cryptocurrencies. Which blockchains are the most popular in B2C payment? Where do regular users have the most transactions?
0x: Among the most popular cryptocurrencies are BTC, ETH, BNB, DOGE, LTC, DASH, SOL, alongside stablecoins like USDT and DAI. When it comes to blockchains, users tend to favor networks with low fees, such as BNB Chain, TRON, and DOGE.
Q: So, Bitcoin isn't the top choice for most merchants?
0x: Bitcoin holds a unique position. Due to its widespread use, merchants typically prioritize accepting Bitcoin payments. Consequently, despite its higher fees compared to other blockchains, Bitcoin still accounts for a significant share of crypto processing. According to our internal statistics, currently, transactions in BTC account for 26% of overall turnover through
Q: What merchants are the main users of crypto payment gateways?
0x: Cryptoprocessing is particularly favored by merchants who operate globally, especially those in the virtual space, owing to its advantages in speed, low fees, and ability to handle international transactions. For example, VPN services, such as Eva VPN which operates globally and has hundreds of secure VPN servers around the world.
Q: Why do businesses show interest in crypto payments despite the volatility of cryptocurrencies?
0x: Businesses such as gaming and betting platforms, subscription services, and global merchants seek fast electronic payments worldwide, beyond the confines of specific countries or regions. Their users require quick account replenishment, and crypto processing proves to be a much more convenient and faster method than traditional payment systems or bank transfers.
The issue of cryptocurrency volatility in processing is not a problem anymore. Particularly, 0xProcessing addresses the volatility issue with its Volatility Risk Control System service. This service automatically converts crypto received as payment to stablecoins, safeguarding assets from market fluctuations. Merchants can choose the portion of crypto to convert into stablecoins and which share of the payment to retain as crypto.
Q: Do merchants prefer immediate conversion to stablecoins upon receiving payments, or do they hold part of their assets in cryptocurrency?
0x: The preference for automatic conversion to stablecoins depends on market conditions. During bear markets, merchants tend to increase automatic conversion amounts to shield against cryptocurrency depreciation. Conversely, amidst recent bullish trends, the share of auto-conversion has notably declined. Merchants, akin to crypto investors, favor HODLing, anticipating enhanced profitability through the appreciation of accepted coins.
Q: Can you compete with the large crypto processing companies in the market?
0x: In some cases, being affiliated with a major crypto exchange or belonging to a large holding can actually be detrimental to crypto processing. Crypto processing is inherently personal. Each merchant has unique needs and specific requests. A one-size-fits-all solution, like a generic product on a supermarket shelf, often falls short. Merchants require fast, simple, and cost-effective solutions tailored to their individual requirements.
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Finally, the introduction of Web3 into crypto processing is our unique offer. Almost no one has anything like this on the market.
Q: In 2021, 0xProcessing introduced Web3 wallet integration. How does this change crypto payment processing, and why is it considered more secure?
0x: With Web3 wallet integration, crypto payment processing becomes more streamlined and secure. This approach enables direct connection with users' Web3 wallets, enhancing security by minimizing intermediaries and facilitating seamless transactions directly from users' wallets.