To understand the growing role of crypto in real-world transactionsTransactions transactions Interactions where value is exchanged for goods or services., it’s essential to break down the core infrastructure — the building blocks that power today’s crypto paymentsCrypto Payments crypto-payments Payments made using cryptocurrencies such as Bitcoin, Ethereum, or stablecoins, often processed through crypto wallets or exchanges..
Here’s a look at the critical layers of the modern crypto payment stack:
🧱 Core Components of the Crypto Payment Stack
| Layer | Description | Examples |
|---|---|---|
| WalletsWallets wallets See Digital Wallets. | Digital walletsDigital Wallets digital-wallets Applications or platforms (like Apple Pay, Google Pay) that store payment card data securely and allow users to pay digitally. store private keys and allow users to send/receive crypto. Custodial wallets are user-friendly but centralized; non-custodial ones offer full control with more friction. | Custodial: Coinbase, Binance Non-custodial: MetaMask, Phantom |
| Stablecoins | Crypto tokens pegged to fiat currencies, offering the benefits of blockchainBlockchain blockchain A decentralized digital ledger used to securely record transactions across multiple systems. with minimal volatility — crucial for payments. | USDC, USDT, DAI |
| On/Off Ramps | Services that allow users to convert between fiat and crypto. They are essential for both onboarding new users and enabling merchants to exit to local currency. | MoonPay, Ramp Network, Transak |
| Payment Processors | These platforms enable businesses to accept crypto at checkout and handle conversion and settlementSettlement settlement The process of transferring funds from the issuer to the acquirer.. | BitPay, Coinbase Commerce, Triple-A |
| Layer 2 Networks | Scaling solutions built on top of base blockchains to enable cheaper and faster transactions. | Lightning Network (BTC), Base (ETH), Optimism |
| Emerging Protocols | Newer protocols focused on merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services. and developer experience, enabling gasless transactions, integrated loyalty, and Web3 commerce tools. | Solana Pay, Starknet |
🧭 Navigating the Stack
This stack is modular — developers and platforms can combine layers as needed:
- A user might onboard via MoonPay, store funds in MetaMask, and pay with USDC via Solana Pay.
- A merchant might use Coinbase Commerce to accept ETH and settle in fiat via an off-ramp.
Together, these layers reduce friction and bring programmability, transparency, and reach to global commerce — far beyond what legacy card systems offer.
📚 Footnotes
- MetaMask (2023). Crypto Wallet UX and Onboarding Barriers.
https://metamask.io/blog/wallet-onboarding-barriers - Circle (2023). USDC Adoption & Payments Ecosystem.
https://www.circle.com/en/usdc - Ramp Network (2023). How On-Ramps Power Global Crypto Adoption.
https://ramp.network/blog/on-ramps-and-the-future-of-crypto-access - Triple-A (2024). Merchant Crypto Payment Enablement Toolkit.
https://triple-a.io/crypto-payment-gateway - Lightning Labs (2023). How Lightning Network Enables Instant Payments.
https://lightning.engineering
Vibhu Arya is a fintechFintech fintech
Short for financial technology, refers to tech-enabled innovation in financial services. and payments expert with 15+ years of experience simplifying how money moves across digital and retail ecosystems. He’s led strategy and partnerships at Citibank, Adyen, and IKEA, and helped scale fintech startups (Snapdeal, iPaylinks) to $1B+ valuations. Vibhu’s expertise spans cards, crypto, cross-border, and real-time payments. He is the founder of PaymentsPedia.com, where he writes about the future of payments.
📧 vibhu@paymentspedia.com | LinkedIn