Fiat On-Ramps Remain Primary Entry Point for Crypto Adoption, States Mercuryo Executive

Aviessa Khoo, the executive director at Mercuryo, a crypto ramp solutions provider, highlighted the continued significance of fiat on-ramps in introducing Web2 users to Web3.

Despite fluctuations in the volume of transactions through fiat on- and off-ramps, Khoo emphasized their enduring role as the principal avenue for transitioning leading Web2 users into the realm of cryptocurrency. Speaking at the Token2049 event in Dubai, Khoo noted a trend in transaction volumes from centralized exchanges to their on-ramp solutions between 2017 and 2022.

More recently, Khoo observed a redirection of crypto volumes toward noncustodial wallets, indicating a trend of users acquiring and holding onto their digital assets.

Khoo maintained the view that on-ramps remain a vital tool for facilitating the entry of non-crypto natives into the Web3 ecosystem, despite these evolving patterns. She stressed the effectiveness of fiat on-ramps in catering to individuals unfamiliar with cryptocurrencies.

However, Khoo acknowledged that crypto-native users might exhibit less enthusiasm for on-ramp solutions due to higher fees associated with Visa or Mastercard debit card transactions. She highlighted a preference among such users for peer-to-peer (P2P) solutions or alternative offline on-ramps, which often come with lower costs albeit potentially higher risks.

In terms of attracting more users to the crypto space, Khoo underscored the importance of enhancing user experience (UX). She emphasized that, as someone from the payment infrastructure sector, ensuring a seamless and intuitive user experience is paramount for driving adoption.

Khoo shared an anecdote about an investor with a Bitcoin wallet from 2017 who struggled to recall their password, illustrating the challenges faced by non-crypto native users. She emphasized the role of UX in facilitating the conversion of Web2 users to Web3.

Sergey Nazarov, co-founder of Chainlink, echoed similar sentiments about UX at the Token2049 event, highlighting the inadequacies in the current crypto user experience and the need for substantial improvements to achieve mainstream adoption.