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Open Banking & API Finance

Trustly Hits 120 Million Global User Milestone as Pay by Bank Adoption Accelerates Across North America and Europe

by Muslim
written by Muslim

The global financial technology landscape reached a significant turning point this week as Trustly, a preeminent leader in the "Pay by Bank" sector, announced that its platform has surpassed 120 million users worldwide. This milestone serves as a definitive marker for the mainstreaming of Open Banking and account-to-account (A2A) payment solutions, reflecting a fundamental shift in how consumers and businesses interact with the global banking infrastructure. As traditional card-based payment systems face increasing pressure from rising processing fees and security concerns, Trustly’s growth underscores a burgeoning preference for direct, bank-integrated transaction methods that prioritize speed, security, and lower operational costs.

The expansion of Trustly’s user base is not an isolated phenomenon but rather a reflection of a broader global trend toward the decentralization of payment processing. In the United Kingdom, data indicates that more than 15 million consumers and businesses are now active users of Pay by Bank services across various providers. This figure represents nearly one in three adults in the UK, with the total number of users increasing by an impressive 34% year-on-year. On a continental scale, industry estimates suggest that adoption across Europe has reached approximately 64 million users, driven largely by the European Union’s Revised Payment Services Directive (PSD2), which mandated that banks open their data to third-party providers via secure Application Programming Interfaces (APIs).

The Evolution of Open Banking and Trustly’s Market Position

Trustly’s ascent to 120 million users is the culmination of more than a decade of strategic infrastructure development. Unlike traditional payment processors that rely on the legacy rails of credit and debit card networks, Trustly’s platform is built on an extensive payments and data network that connects thousands of financial institutions across Europe and North America. This network is widely regarded as one of the broadest in the Open Banking ecosystem, leveraging over ten years of transaction intelligence to refine its risk management and user experience protocols.

The platform’s success is rooted in its ability to serve a diverse array of high-volume industries, including e-commerce, financial services, gaming, telecommunications, and the public sector. By bypassing the intermediaries typically associated with card transactions, Trustly provides merchants with a streamlined settlement process that reduces the risk of chargebacks and significantly lowers transaction fees. For consumers, the appeal lies in the "frictionless" nature of the transaction—payments are authorized directly through their existing banking apps, utilizing the biometric security features (such as FaceID or fingerprint scanning) already native to their mobile devices.

Strategic Partnerships and Institutional Trust

A key driver behind Trustly’s recent growth has been its ability to secure and maintain high-stakes partnerships with some of the world’s most recognizable brands and government entities. Over the past 24 months, the company has attracted a prestigious portfolio of clients across multiple verticals. In the e-commerce and travel sectors, giants such as Booking.com and Lenovo have integrated Trustly to offer their customers more flexible payment options. In the telecommunications sector, the company has solidified its presence through partnerships with AT&T in the United States and Virgin Media O2 in the United Kingdom.

Perhaps the most significant testament to Trustly’s reliability is its ongoing relationship with His Majesty’s Revenue and Customs (HMRC) in the United Kingdom. As the primary tax authority for the UK government, HMRC’s adoption of Open Banking technology represents the most significant mandate of its kind globally. By allowing citizens to pay taxes directly via their bank accounts, HMRC has processed billions of pounds in revenue through the Pay by Bank framework. The success of this partnership has provided a blueprint for other government agencies worldwide, demonstrating that Open Banking is capable of handling the scalability and security requirements of national-level infrastructure.

Technological Innovation: AI and Biometrics

Trustly’s recent milestone is also a product of its aggressive pursuit of technological innovation. In 2023, the company introduced an AI-powered recurring payments solution designed to address the inefficiencies of traditional Direct Debits and card-on-file systems. By utilizing machine learning algorithms to analyze transaction patterns and account data, the system can predict the optimal time to process a payment, thereby reducing the likelihood of failures due to insufficient funds. This innovation has proven particularly valuable for subscription-based businesses and utility providers, helping to enhance customer lifetime value (CLV) and stabilize revenue streams.

Looking ahead to 2025, Trustly has further expanded its technological footprint with the launch of "Trustly ID" in the European market. This biometric-driven identification solution is designed to streamline the Know Your Customer (KYC) process, particularly in the gaming and financial services sectors where regulatory compliance is paramount. By speeding up the identification and login process, Trustly ID reduces abandonment rates and enhances the user experience without compromising on security.

In the United States, the company has introduced "Scan & Pay," a cashless gaming solution aimed at the land-based casino and hospitality industries. As physical venues increasingly seek to transition away from cash-heavy operations, Scan & Pay allows patrons to fund their gaming activities directly from their bank accounts via a simple QR code scan. This not only provides a safer and more convenient experience for the player but also offers significant cost savings and operational efficiencies for the venue operators.

The North American Landscape: A Massive Growth Opportunity

While Europe has historically been the leader in Open Banking due to proactive regulation, the United States is rapidly catching up. Trustly’s data reveals that at least 100 million American consumers have now authorized a third party to access their bank account data for payments or financial management. This shift is being supported by a changing regulatory environment, most notably the Consumer Financial Protection Bureau’s (CFPB) efforts to implement Section 1033 of the Dodd-Frank Act, which aims to give consumers greater control over their financial data.

The US market represents a massive growth opportunity for Trustly, as American merchants seek alternatives to the high interchange fees associated with the dominant card networks. The adoption of A2A payments in the US is expected to accelerate as more consumers become comfortable with the security and ease of paying directly from their bank accounts. Trustly’s established presence in the US, combined with its experience in the highly regulated European market, positions it as a primary beneficiary of this transition.

Official Responses and Industry Impact

Johan Tjärnberg, Group Chief Executive Officer of Trustly, emphasized the significance of the 120 million user mark in a statement following the announcement. "Surpassing 120 million users is a real milestone for Trustly and is testament to our central role in driving the momentum behind Pay by Bank globally," Tjärnberg stated. "This achievement reflects not only Trustly’s market-leading position but also the growing trust and demand for Pay by Bank as consumers and businesses alike embrace faster and more secure ways to pay. We’re excited to continue driving this evolution forward to make seamless and safe payments a reality for all."

Industry analysts suggest that Trustly’s growth is indicative of a "second wave" of fintech disruption. While the first wave focused on digital interfaces for traditional banking services, the second wave—led by companies like Trustly—is fundamentally rewriting the underlying plumbing of the financial system. By creating a direct link between the merchant and the consumer’s bank account, Trustly is effectively removing the "middlemen" of the payment world, a move that has long-term implications for the profitability models of traditional credit card issuers.

Future Outlook and Market Implications

As Trustly looks toward the future, the implications of its 120 million user milestone extend far beyond a single company’s balance sheet. The continued rise of Pay by Bank technology suggests a future where "plastic" cards may become secondary to digital, bank-integrated identities. The integration of AI and real-time data will likely lead to even more personalized financial services, where payments are not just transactional but are informed by the user’s overall financial health.

Furthermore, the expansion of Trustly into government payments and large-scale utilities indicates that Open Banking is moving out of the "niche fintech" category and into the "essential infrastructure" category. As more countries adopt Open Banking standards—such as Brazil with its Pix system and India with UPI—the global expectation for instant, secure, and low-cost payments will only grow.

For merchants, the message is clear: the cost of traditional payment processing is no longer a fixed necessity. With 120 million users already onboarded and millions more joining every year, the Pay by Bank ecosystem has reached the critical mass necessary to challenge the status quo. Trustly’s journey from a Swedish startup to a global powerhouse serves as a case study in the power of infrastructure-led innovation, proving that in the modern economy, the most valuable network is the one that connects directly to the source of value: the bank account.

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WealthTech & Robo-Advisors

Wealthfront’s Commitment to Security: Safeguarding Your Financial Future Through Robust Protections and User Empowerment

by Sagoh
written by Sagoh

Wealthfront’s unwavering commitment to the security of client accounts and the privacy of personal data stands as a cornerstone of its operational philosophy. The financial technology company, known for its automated investing and banking services, dedicates significant resources and adheres to stringent regulatory frameworks to ensure the integrity of its platform. This dedication encompasses a multi-layered approach, combining advanced technological safeguards, comprehensive insurance protections, proactive fraud prevention, and a transparent privacy policy, all designed to instill and maintain client trust.

Protecting Your Cash and Investments: A Dual Shield of Insurance

At the heart of Wealthfront’s client protection strategy lies a robust framework designed to safeguard both cash holdings and investment portfolios. For cash deposited into a Wealthfront Cash Account, the company leverages the power of FDIC insurance through a network of program banks. While Wealthfront itself is not a bank, it acts as an intermediary, facilitating access to FDIC insurance for its clients. Typically, FDIC insurance covers up to $250,000 per depositor, per insured bank, for each account ownership category. However, Wealthfront significantly amplifies this protection for its users. By strategically distributing client cash across multiple program banks, Wealthfront enables coverage up to $8 million for individual accounts and an impressive $16 million for joint accounts. This extended coverage is crucial for individuals and families with substantial cash reserves, offering a substantial buffer against the unlikely event of a program bank’s failure. It is important to note that this FDIC pass-through insurance is active once funds arrive at the Program Banks, and during the transition period to and from Wealthfront Brokerage, cash balances are protected by SIPC coverage.

Complementing the FDIC insurance for cash, Wealthfront provides robust protection for client investments through the Securities Investor Protection Corporation (SIPC). SIPC coverage offers protection up to $500,000 per customer, with a sub-limit of $250,000 for cash. This coverage is particularly vital in the event of a brokerage firm’s insolvency or financial distress, where customer assets might be at risk. SIPC oversees the liquidation process for failing firms, working to return customer assets. It is critical to understand that SIPC protection does not cover losses due to market fluctuations or investment performance. Instead, it safeguards against the financial failure of the brokerage firm itself and the potential disappearance of client securities. Furthermore, SIPC coverage extends to money in transit, including cash deposits that are in the process of being moved to a program bank, offering an additional layer of security during operational transitions.

Fortifying Against Fraud: Proactive Monitoring and Enhanced Features

Wealthfront employs a sophisticated, multi-faceted approach to combatting financial fraud. The company’s internal systems are designed to continuously monitor for unusual account activity across all client accounts. This includes scrutinizing transaction patterns and the linkage of external accounts, with any anomalies automatically flagged for review by a dedicated team of human experts. These specialists possess extensive training in the prevention of financial crimes and money laundering, ensuring a vigilant defense against illicit activities.

Beyond this continuous oversight, Wealthfront offers enhanced fraud-prevention features specifically for its Cash Account. These features are designed to provide clients with greater control and security over their funds. While the specifics of these additional features were not detailed in the provided content, their existence underscores Wealthfront’s commitment to providing clients with tools to actively participate in their own account security. These might include advanced transaction alerts, spending limits, or multi-factor authentication for specific sensitive operations within the Cash Account.

Ensuring Account Security: A Foundation of Advanced Technology and Best Practices

The security of client accounts at Wealthfront is built upon a foundation of cutting-edge technology and rigorous adherence to industry best practices. A primary pillar of this security architecture is the mandatory implementation of two-factor authentication (2FA) for all Wealthfront accounts. This critical security measure requires users to provide two distinct forms of verification when logging in, significantly increasing the difficulty for unauthorized access. For its employees, Wealthfront elevates this standard further by mandating the use of phishing-resistant authentication factors for all supported systems, representing a proactive defense against sophisticated social engineering attacks.

Recognizing the need for seamless integration with essential financial tools, Wealthfront enables the use of app-specific passwords. This feature is particularly beneficial for clients who wish to link their Wealthfront accounts to third-party applications like TurboTax, YNAB, or Monarch. By generating unique passwords for each application, clients can grant these services read-only access to their Wealthfront data without compromising their primary Wealthfront credentials. This isolation of access is a crucial security practice, ensuring that a compromise of a linked application does not automatically lead to a breach of the core Wealthfront account.

How Wealthfront Keeps Your Savings & Data Safe

Data encryption is another fundamental aspect of Wealthfront’s security protocols. The company utilizes industry-standard cryptographic protocols to encrypt all client data, encompassing sensitive information such as personally identifiable information, passwords, and documents uploaded to the platform. This end-to-end encryption ensures that data remains confidential and unreadable to unauthorized parties, both in transit and at rest.

Wealthfront also demonstrates a proactive approach to internal security by conducting regular dark-web scanning for employee credentials. This practice helps identify if any employee login information has been compromised on the dark web, allowing the company to take immediate remedial actions, such as password resets and account monitoring. This is complemented by regular employee phishing exercises and annual security training, which collectively aim to educate employees and minimize the risk of credential compromise.

The principle of least privilege is deeply embedded in Wealthfront’s operational framework. This security doctrine dictates that employees are granted only the minimum level of access and permissions necessary to perform their job functions. This minimizes the potential attack surface and limits the damage an attacker could inflict if they managed to gain unauthorized access to an employee’s account. This principle is also extended to third-party applications, where data sharing is limited to the bare minimum required, and whenever possible, client data is anonymized before being shared with vendors. These vendors are subject to rigorous review by a third-party risk management committee and regular audits of their security practices.

The company’s commitment to security is further validated by its engagement with both internal security teams and external security firms. An internal team continuously assesses risks across the company and platform, implementing solutions to address identified vulnerabilities. They actively monitor security resources and review vendor notifications for emerging threats. External security firms are engaged to complement these internal efforts, bringing in specialized expertise and ensuring that Wealthfront’s security practices align with the latest industry advancements. Furthermore, a prestigious "big-four" accounting firm conducts an annual audit of Wealthfront’s policies, processes, and procedures related to critical areas like changes, privileged access, and broker-dealer operations, providing an independent verification of the company’s security posture.

Wealthfront’s dedication to maintaining a high standard of information security is formally recognized through its ISO 27001:2022 certification. This globally recognized standard for Information Security Management Systems (ISMS) signifies that Wealthfront has implemented a comprehensive framework for managing sensitive company information, encompassing robust business continuity planning, granular access control protocols, and a sophisticated incident management framework designed to protect user assets.

Transparency in Data Privacy: Your Information Belongs to You

Wealthfront’s privacy policy underscores a fundamental principle: client data belongs to the client. The company explicitly states that it does not rent, sell, or trade personal information for any reason. This commitment to data privacy is a critical component of building and maintaining user trust in the digital age. Clients are encouraged to review the detailed privacy policy for a comprehensive understanding of how their data is handled and protected.

Empowering Users: Taking an Active Role in Online Security

While Wealthfront implements extensive measures to secure its platform, the company also emphasizes the importance of user participation in maintaining online security. It advocates for a proactive approach, encouraging clients to adopt best practices across all their online accounts, not just at Wealthfront. Key recommendations include:

  • Using strong, unique passwords for all online accounts. This involves avoiding easily guessable passwords and refraining from reusing passwords across different platforms.
  • Enabling two-factor authentication wherever available. This provides an essential extra layer of security beyond a simple password.
  • Being vigilant about phishing attempts. Users are advised to be cautious of unsolicited emails, messages, or calls requesting personal information or directing them to suspicious websites.
  • Regularly reviewing account statements and activity. Promptly reporting any unauthorized transactions or suspicious activity to the financial institution.
  • Keeping software and operating systems updated. Updates often include critical security patches that protect against known vulnerabilities.
  • Using secure Wi-Fi networks. Avoiding public Wi-Fi for sensitive financial transactions.
  • Considering password managers. These tools can help generate and store strong, unique passwords for all online accounts.

By fostering a collaborative security environment where both the company and its clients actively contribute to safeguarding data and accounts, Wealthfront aims to provide a secure and trustworthy financial experience. The company’s comprehensive security infrastructure, coupled with clear privacy commitments and user empowerment initiatives, demonstrates a profound dedication to protecting the financial well-being and personal data of its clientele. This ongoing commitment is essential in an increasingly complex digital landscape where trust and security are paramount.

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Decentralized Finance (DeFi)

Crypto Card Market Soars to $607 Million in Monthly Volume, Driven by Diverse User Needs and Regulatory Arbitrage

by Siti Muinah
written by Siti Muinah

The global crypto card market reached an unprecedented $607 million in monthly transaction volume for March 2026, marking a significant milestone in the broader adoption of digital assets for everyday spending. This figure, reported by Paymentscan data, represents a remarkable surge from $187 million a year prior and approximately $100 million just eighteen months ago. Such growth translates to a staggering sixfold increase in volume over a year and a half, culminating in $6.5 billion in cumulative spending across more than 21 million individual transactions. While these headline numbers paint a picture of explosive expansion, a deeper dive into the market reveals a complex landscape shaped by varied user motivations, diverse technological architectures, and an evolving regulatory environment that often obscures as much as it illuminates the true dynamics at play.

Unpacking the Market’s Meteoric Rise

The substantial growth in crypto card usage underscores a growing demand for seamless conversion of digital assets into spendable fiat. This surge is not monolithic; it reflects a confluence of factors, including increased crypto adoption, the proliferation of stablecoins as a preferred medium of exchange, and the strategic positioning of card providers. The cumulative spending of $6.5 billion through over 21 million transactions highlights both the scale and frequency of these financial activities, indicating that crypto cards are moving beyond niche use cases to become a practical tool for a significant user base.

However, understanding this market requires scrutinizing the underlying data and methodologies. According to Obchakevich Research, a leading granular on-chain dataset provider, the reported volumes are subject to specific interpretations based on card architecture and data collection limitations. Their public Dune Analytics dashboard tracks 14 prominent crypto card programs, categorizing them into non-custodial and custodial models, a distinction critical for accurate analysis.

For non-custodial cards, such as ether.fi Cash, Cypher, MetaMask, Avici, ExaApp, Moonwell, and kardpay, the dashboard meticulously tracks spend volume – actual card payment transactions observable on-chain. This provides a direct measure of real-world usage. In contrast, for custodial cards like RedotPay and Kolo, the data reflects deposits flow volume, which is the amount of crypto moved into the card provider’s wallets. This fundamental difference means that a high "volume" for a custodial card doesn’t necessarily equate to immediate spending; a portion of these deposits may sit idle, be withdrawn, or fund future purchases over time. For instance, RedotPay’s reported $283.9 million in monthly volume primarily represents stablecoins deposited into its application, not all of which are spent within the same month. In contrast, ether.fi Cash’s $47.8 million is closer to actual card-level spending, as vault-to-card transactions are settled through transparent smart contracts.

Adding another layer of complexity, there’s a significant $230 million gap between Paymentscan’s $607 million total market volume and the $377 million tracked by Obchakevich’s 14 cards. This discrepancy largely stems from programs that lack an on-chain footprint, predominantly CEX-issued cards from major platforms like Crypto.com, Binance, Coinbase, Bybit, and Wirex. These platforms typically process transactions off-chain, making their substantial contributions invisible to on-chain analytics dashboards. Consequently, while the Obchakevich leaderboard offers the most detailed publicly available data, its rankings should be viewed as directional rather than definitive, acknowledging the varied measurement metrics and the exclusion of major off-chain players.

The Diverse User Landscape: Who is Using Crypto Cards?

The "crypto card user" is far from a monolithic entity. The market caters to at least four distinct segments, each drawn to specific product models based on their priorities and risk tolerance. Understanding these segments is key to identifying which products are likely to thrive.

  1. Stablecoin Pragmatists: This segment constitutes the largest group by volume. Predominantly holding USDT or USDC, often as a primary savings vehicle in regions plagued by weak local currencies or high inflation, their core need is a simple, reliable way to spend their stablecoins. Self-custody, DeFi composability, or governance tokens are not their primary concerns. They seek a card that functions effortlessly for daily purchases, from groceries to travel. RedotPay and Kolo have effectively captured this segment, offering straightforward solutions.

  2. DeFi-Native Holders: These users possess significant holdings in ETH, staked ETH, or other DeFi positions and wish to avoid selling their assets to spend. Their preference is for products that offer yield until the point of purchase, tax-efficient spending structures (like borrowing against collateral), and cashback mechanisms that compound on-chain. ether.fi Cash, and to a lesser extent Avici and ExaApp, are tailored to this sophisticated demographic.

  3. Exchange-First Traders: For this group, the crypto card is an ancillary feature rather than a standalone product. They are already deeply embedded within a Centralized Exchange (CEX) application. Cards offered by platforms like Bitget or MetaMask act as a zero-friction extension of an existing relationship, driven by convenience and ecosystem lock-in rather than unique card-specific features.

  4. Privacy-Conscious Spenders: A smaller but rapidly growing segment, these users prioritize virtual prepaid cards, minimal Know Your Customer (KYC) requirements, and a disconnect between their on-chain identity and spending habits. kardpay directly targets this group, showing a remarkable 208% year-over-year growth, indicating a significant, albeit niche, unmet demand.

These distinct segments possess varying risk tolerances, geographical distributions, and feature priorities. A card optimized for emerging markets with high Telegram usage (like Kolo) operates in a different competitive arena than a DeFi credit card (like ether.fi). Treating them as a single market leads to misleading comparisons and an incomplete understanding of market dynamics.

The Unspoken Demand Driver: Compliance Arbitrage

Beyond the declared user segments, there exists a significant, often unacknowledged, demand driver: the ability to spend money without generating the traditional tax reporting trail associated with conventional bank cards. For many users, particularly in specific jurisdictions, this "tax opacity" is not a flaw but a crucial feature.

In many tax jurisdictions, including the United States, every crypto-to-fiat conversion is considered a taxable disposition. This means that when a crypto card is used, any gain or loss realized on the stablecoins spent (factoring in cost basis, FX movements, and conversion spreads) is theoretically taxable. Given the 21.4 million transactions processed, the scale of potential unreported taxable events is immense.

While precise compliance figures are elusive, anecdotal evidence and practitioner estimates suggest low voluntary compliance. A CNN report cited an IRS internal review estimating only about 25% voluntary compliance among crypto investors, with some industry experts putting it even lower. A CoinTracker/Coinbase survey noted 65% of US crypto users had reported crypto on their taxes, but this likely represents a self-selected, compliance-aware demographic.

Crucially, crypto card spending is inherently harder to track. Transactions occur at the point of sale, often through offshore issuers that do not file standard tax forms like 1099-DAs with the IRS. The micro-gains or losses from individual stablecoin-to-fiat conversions are tedious to calculate, further disincentivizing reporting. A substantial portion of users are also located in jurisdictions that either do not tax crypto-to-fiat spending or lack the infrastructure to enforce such taxes. This suggests card-specific compliance rates are likely lower than the already modest figures for general crypto activity.

For stablecoin pragmatists, especially in emerging markets, the appeal extends beyond merely "spending USDT at a store." It encompasses the benefit of "spending USDT at a store without it appearing on a bank statement, a 1099, or a tax authority’s radar." In regions with capital controls, volatile local currencies, or aggressive tax regimes, these cards function as an unregulated off-ramp, allowing individuals to move and spend value without engaging with the local banking system. RedotPay’s 6 million users across 100+ countries likely include many individuals driven by this utility.

The US regulatory landscape, particularly with the phased rollout of Form 1099-DA under the final broker regulations published in July 2024, aims to close these gaps. Custodial brokers began tracking gross proceeds for sales from January 1, 2025, with cost-basis reporting for covered transactions phasing in from January 1, 2026. However, offshore crypto card issuers that do not qualify as US brokers may not file 1099-DAs, creating a reporting gray zone for transactions like funding a RedotPay card with USDT from a non-custodial wallet and using it for purchases in the US.

DeFi-native cards introduce another layer of complexity. The repeal of the DeFi broker reporting rule means non-custodial protocols are not required to file 1099-DAs. Products like ether.fi’s Borrow Mode, where users borrow against crypto collateral instead of directly disposing of it, are not currently considered taxable events under IRS guidance. This "spend without selling" model offers a structural tax arbitrage that provides real financial benefits to holders of appreciated crypto assets.

While these practices are not inherently illegal (tax obligations exist regardless of reporting), the enforcement gap is substantial. This global picture is further complicated by uneven regulatory timelines. The US and EU are rapidly tightening their frameworks, with impacts expected within 12-18 months. However, in the emerging markets where most stablecoin card spending occurs (e.g., Southeast Asia, LATAM, Africa, CIS), enforcement lags years behind legislation. Countries like Vietnam, the Philippines, Nigeria, and Brazil are formalizing laws, but the practical tools for monitoring stablecoin spending through offshore cards are still nascent. The OECD’s Crypto-Asset Reporting Framework (CARF), which aims for cross-border information sharing, will see its first exchanges in 2027 (covering 2026 data), but many high-adoption emerging markets will join in later waves, pushing comprehensive enforcement years into the future. This uneven regulatory timing is precisely where much of the current volume resides, suggesting that the net effect of global regulatory tightening on overall crypto card volumes may be less immediate than headlines suggest.

The Architecture Beneath: How Crypto Cards Are Built

Beyond consumer-facing features like cashback and token support, the underlying architecture of crypto card programs significantly impacts their operational longevity, regulatory exposure, and true cost. Two common supply-side "tricks" are prevalent:

  1. The Gift Card Repackage: This involves repackaging standard single-load prepaid gift cards (often US-issued Visa or Mastercard) as "privacy-focused, no-KYC" crypto cards. While convenient, these cards often come with poor user experiences, including merchant acceptance issues, inability to spend full balances, and dormancy fees. The business model relies on charging 3-7% on crypto top-ups and collecting 3-5% on unspent balances through breakage and inactivity fees, making the "leftover balance" a feature, not a bug. High cashback rates combined with minimal identity requirements are often red flags for this model.

  2. The Corporate Card Disguise: More sophisticated, this scheme involves an issuer obtaining a corporate card program in an offshore jurisdiction (e.g., Puerto Rico, Hong Kong) and repackaging these cards as low-KYC consumer products. Corporate card programs offer higher interchange rates, flexible global distribution, and limits sized for companies, not individuals. Users receive cards with no travel rule checks, minimal proof of address, and daily/monthly spending limits (e.g., $1 million/month) far exceeding typical retail prepaid cards (e.g., $5,000/day). The revenue model involves stacking card issuance fees, elevated interchange from the corporate classification, and 2-4% FX conversion on non-USD transactions. These programs tend to have a rapid lifecycle—launch fast, grow fast, die fast—as card networks and regulators eventually identify and shut them down, often abruptly, freezing user balances.

Consumers using or building on top of such programs must understand the underlying card type to assess the associated risks.

Key Players: RedotPay, ether.fi Cash, and the Infrastructure War

RedotPay: Dominates the leaderboard with $283.9 million in monthly deposit flow, accounting for 75.26% of tracked volume. The Hong Kong-based company secured $107 million in Series B funding in December 2025 and reported 6 million registered users and $10 billion in annualized payment volume by late 2025. Its recent launch of a Solana card in February 2026 aims to tap into the SOL ecosystem. RedotPay utilizes Singapore-based StraitsX as its Visa BIN sponsor, meaning it doesn’t have a direct relationship with Visa, introducing a dependency layer.

RedotPay’s fee structure includes a 1% crypto-to-fiat conversion fee, a 1.2% FX markup on non-USD transactions, and 2-3% on ATM withdrawals. These fees stack, making international ATM withdrawals potentially costly. Its custodial model means user stablecoins reside within the app, not a self-custodied wallet. The company’s dominance confirms that most stablecoin users prioritize reliability, reach, and simplicity over self-custody. However, fee competition is expected to intensify as the market matures.

Notably, RedotPay’s limits are exceptionally high for a consumer product, with up to $100,000 per transaction and reportedly $1,000,000 per day for USD BINs, and $50,000/month in ATM withdrawals. This contrasts sharply with typical retail prepaid cards that cap daily spending at $2,500-$5,000. This limit structure, combined with minimal KYC (proof of identity only, no proof of address or enhanced due diligence) and the absence of travel rule checks, strongly suggests a corporate or commercial card program repackaged for individuals, raising potential regulatory scrutiny.

ether.fi Cash: This DeFi-native card achieved $47.8 million in monthly spend volume, holding a 12.67% market share with 42.7% YoY growth. It offers Direct Pay (spending from USDC/eETH vaults while earning staking yield) and Borrow Mode (borrowing USDC against staked ETH collateral, avoiding taxable sales for US users). Cashback is paid in wETH at 2-3%.

However, ether.fi Cash comes with inherent DeFi risks:

  • Liquidation Risk: Borrow Mode exposes users to liquidation if ETH collateral drops below a threshold.
  • Smart Contract Risk: Operating on Gnosis Safe smart contracts on Scroll L2, it shares attack surface categories with past exploits, such as the Bybit breach in February 2025, which involved a SafeWallet front-end compromise.
  • Promotional Borrow Rate: The 0% borrow rate is a promotion, set to expire in Q2 2026, after which it will revert to floating Aave market rates, potentially impacting its growth trajectory.
  • Transparency Concerns: As a liquid staking protocol that aggressively pivoted to payments, questions arise about how much of its growth is organic versus subsidized by promotional campaigns.

The Infrastructure Battle: Beneath the consumer cards, an infrastructure war is being waged.

  • Rain: A full-stack issuer with direct Visa principal membership, Rain raised $250 million in Series C funding in January 2026 at a $1.95 billion valuation. It powers cards for over 200 partners across 150+ jurisdictions and processed over $3 billion in annualized volume by late 2025. Rain owns the full stack economics, capturing interchange, FX spread, and reserve yield.
  • GnosisPay: Offers self-custodial card infrastructure on Gnosis Chain for partners to deploy.
  • Wirex BaaS: Claims $105 million in on-chain card volume for March 2026, with a focus on multi-currency stablecoin settlement (USDC and EURC with Visa), eliminating FX conversion costs for European partners. Wirex emphasizes speed-to-market and European economics.

These competing infrastructure models define who controls the economics, regulatory exposure, and ultimate scalability of the crypto card market.

Mid-Tier Dynamics and Emerging Niche Players

The mid-tier of the leaderboard, while numerically smaller, offers insights into evolving product-market fit:

  • Cypher ($13.3M monthly, -41.9% growth): A multi-chain wallet with a zero-fee USDC Visa card. Its decline suggests challenges in distribution despite a strong feature set, struggling against players with established ecosystems.
  • GnosisPay ($6.8M monthly, -37.2% growth): Primarily infrastructure for white-label self-custodial cards. Its volume fluctuations likely reflect B2B partner dynamics rather than direct consumer demand.
  • Ready (formerly Argent, $6.0M monthly, +82.2% growth): A Mastercard offering fiat deposits, USDC spending, no FX fees, and 3% cashback. Its rapid growth indicates a strong demand for a neobank-like experience built on crypto rails, appealing to users who want crypto economics without the complex UX.
  • Kolo ($5.7M monthly, +44.6% MoM): Demonstrates strong month-over-month growth with USDT funding, BTC cashback, and Telegram integration. This combination is highly optimized for Southeast Asian and CIS markets, showcasing successful geographic-specific product-market fit.
  • MetaMask Card ($4.8M monthly, -21.7% growth): Despite MetaMask’s vast user base, its "sell to spend" model, which triggers taxable events and is less attractive than collateral-backed alternatives, has limited its traction. Brand alone isn’t sufficient when underlying mechanics are commoditized.

Fast risers from smaller bases include:

  • Avici (+575.8% YoY, $3.4M monthly): A crypto-collateralized Visa credit card, resonating with the "spend without selling" model.
  • Bitget Wallet Card (+233.9%, $3.0M monthly): Highlights the power of exchange-wallet integration for distribution.
  • kardpay (+208%, $193K monthly): The privacy play with virtual prepaid cards and minimal identity footprint, signaling unmet demand for low-KYC options, albeit with potential "gift card repackage" risks.

The long tail of the market, including Exodus, ExaApp, Moonwell, and Sonic, collectively accounts for less than 1% of tracked volume, indicating that market concentration remains high, with the top two players controlling nearly 88% of tracked volume.

Navigating the Regulatory Landscape: Two Walls Closing In

The regulatory environment is rapidly evolving, with two major frameworks set to significantly reshape the crypto card market in 2026 and beyond:

  1. The GENIUS Act (US): Signed into law in July 2025, this is the first federal framework for payment stablecoins in the US. It mandates one-to-one reserve backing for payment stablecoins, held in high-quality liquid assets and regularly audited. It also explicitly clarifies that permitted payment stablecoins are not securities and restricts stablecoin issuance to permitted entities in the US. While implementation rules are still being finalized by various agencies (OCC, FDIC, Treasury, FinCEN), enforcement is staged to begin in January 2027. This framework will enhance counterparty risk reduction for stablecoins but will likely create barriers for non-US-based card programs seeking to operate in the American market.

  2. MiCA (Europe): The Markets in Crypto-Assets Regulation is now fully operational, with the grandfathering deadline for existing crypto service providers set for July 1, 2026. MiCA requires CASP licensing with EU-wide passporting, stringent reserve requirements for stablecoin issuers, and transaction caps on non-EU-currency stablecoins. Its impact has already been felt, with major exchanges like Coinbase Europe and Crypto.com delisting USDT and other non-compliant stablecoins for EEA users in late 2024 and early 2025. Circle, having achieved MiCA compliance, has seen a surge in USDC transaction volume in Europe. Tether has stated no plans to seek MiCA authorization. For European crypto card users, this means a narrowing path for USDT-funded cards and a structural advantage for cards built on USDC or other MiCA-compliant stablecoins. The dual-licensing requirement (MiCA authorization and PSD2 payment services licenses) adds compliance costs, favoring well-capitalized players.

These two frameworks, while converging on the principle of regulated, reserve-backed stablecoins, diverge in their specifics. How each crypto card provider navigates both simultaneously will be a defining competitive factor over the next 12 months, determining which cards gain access to the largest regulated consumer markets.

Inherent Risks and Future Outlook

Beyond fees and features, users must be aware of critical risks:

  • Custodial Risk: For cards like RedotPay and Kolo, user stablecoins are held by the provider, exposing funds to regulatory freezes, hacks, or insolvency without FDIC-like insurance.
  • Smart Contract Risk: DeFi-native cards like ether.fi are susceptible to smart contract vulnerabilities, with industry hack losses running into billions in 2025, as attack surfaces shift towards operational infrastructure.
  • Liquidation Risk: Borrow Mode cards (ether.fi, Avici, ExaApp) expose users to forced sales of collateral during market downturns.
  • Network Risk: All crypto cards rely on Visa and Mastercard. Policy changes by these networks regarding crypto-funded programs could disrupt the entire market.
  • Program Shutdown Risk: Cards built on gift card schemes or repackaged corporate programs face abrupt shutdowns due to regulatory or network flags, often resulting in frozen balances.

Looking ahead, several factors will shape the market:

  • The GENIUS Act enforcement (Jan 2027) and MiCA grandfathering (July 2026) will force compliance decisions, favoring cards that can thread both frameworks.
  • The expiration of ether.fi’s 0% borrow rate will test the sustainability of the DeFi card model without subsidies.
  • Kolo’s Telegram-centric model in emerging markets shows breakout potential.
  • The emergence of a bank-issued stablecoin card, enabled by the GENIUS Act, could significantly disrupt the competitive landscape.

The $607 million monthly volume in March 2026 is a testament to the crypto card market’s vitality, but it’s a growth story with two distinct narratives. In the US and EU, a meaningful portion of this volume operates in a compliance gray zone, which is rapidly shrinking under tightening regulations like the GENIUS Act, MiCA, CARF, and DAC8. This segment of the market lives on borrowed time.

However, the majority of this volume originates from Southeast Asia, LATAM, and Africa, where stablecoins serve as vital tools for savings, remittances, and inflation hedges. In these regions, the enforcement infrastructure is years behind legislative developments, meaning the compliance arbitrage driving growth there has a significantly longer runway—perhaps 5-10 years or more.

The cards that will endure and thrive are those whose value proposition is robust regardless of tax opacity or minimal KYC. ether.fi’s yield and tax-deferred spending model, Ready’s neobank approach, GnosisPay’s infrastructure play, and RedotPay’s fundamental utility for stablecoin spenders in diverse global markets offer inherent product advantages that transcend regulatory loopholes. Conversely, cards whose primary appeal is a lack of scrutiny face an inevitable expiration date. The long-term winners will be those that successfully navigate and provide value in both the increasingly regulated Western markets and the less stringent, but rapidly evolving, emerging economies.

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