Web3 Payment Solutions Market Size & Share, by Type (Cryptocurrency Payments, NFT-based Payments, Decentralized Finance (DeFi) Payment, Smart Contract-enabled Payments, Tokenized Asset Payments), Deployment Model, End user, Application, Industry Vertical - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 6476
  • Published Date: Sep 26, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Web3 Payment Solutions Market size is assessed at USD 12.3 billion in 2024 and is set to reach USD 300.7 billion by the end of 2037, expanding at around 27.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of web3 payment solutions is estimated at USD 15.8 billion.

The demand for web3 payment solutions is growing rapidly due to the increased adoption by businesses and consumers for decentralized financial transactions. Web3 solutions offer better security, transparency, and decentralization than some other traditional financial systems with the advent of blockchain, cryptocurrencies, and tokenized assets. The web3 payment solutions market growth is attributed to other factors such as surging demand for DeFi solutions, integration of the Web3 technology ecosystem with conventional economic infrastructures, and growing trust in blockchain security.

Governments worldwide have also recently begun to increasingly grasp the enormous potential of Web3 technologies for driving further innovation in the digital economy. In September 2023, a blockchain-based platform called ZAN was launched by Ant Group, which is designed to support Web3 development with security and compliance in digital asset management. Also, regulatory frameworks that support these technologies are improving day by day. This serves to make the environment more and more favorable for the adoption of Web3 payments. Governments are also building legal frameworks to manage cryptocurrencies and blockchain transactions offering protection to consumers.


Web3 Payment Solutions Market Overview
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Web3 Payment Solutions Market: Growth Drivers and Challenges

Growth Drivers

  • Rise of DeFi solutions: Decentralized Finance, also known as DeFi, has emerged as the key growth driver for the Web3 payment solutions market. DeFi makes financial transactions between peers possible without using any intermediaries, thus, reducing friction in price and enhancing transparency. The demand for options regarding DeFi payments is expected to leap forward as more and more users shift towards decentralized platforms for lending, borrowing, and trading. In March 2024, Polygon Labs signed a deal with ChainGPT to create greater scaling for DeFi applications using AI and Blockchain Infrastructure, taking innovation at warp speed in the Web3 Payment Spaces.
  • Adoption of blockchain-based payment systems: Blockchain technology has made payment systems secure, transparent, and immutable audit trails of transactions. This technology decreases the possibility of fraud and enhances efficiency linked to cross-border payments, except that it features real-time settlement. In June 2024, WSPN's partnership with DigiFT on favoring stablecoin applications and Web3 payment solutions underlined the increasing reliability of blockchain for innovations in worldwide payments.
  • Increased tokenized asset payments: With tokenized assets representing the ownership of either real-world items or digital assets, this is fast becoming a preferred method of payments across Web3 ecosystems. These are suitable means of transaction across decentralized networks and, therefore, gain traction in industries such as real estate and gaming. The launch of Visa's Web3 Loyalty Engagement Solution in January 2024 for tokenizing loyalty rewards by brands is just one example of tokenized asset payments going mainstream.

Challenges

  • Regulatory ambiguity: Complex regulations set by countries act as a major factor impeding the adoption of Web3 payment solutions. Governments are starting to develop policies addressing cryptocurrencies and blockchain technologies. This turns into a major entry barrier for those companies trying to operate in the industry offering Web3 payment services. For example. in June 2024, the U.S. government released a new framework with rules against money laundering compliance on digital asset transactions, proving how complex the regulative environment can get.
  • Security concerns: Although blockchain is secured, various backdoors within smart contracts and dApps can make the Web3 payment solution vulnerable. A notable incident with cyberattacks that happened in August 2023 was related to Poly Network, where hackers siphoned off more than USD 600 million by exploiting smart contracts. Such incidents raise demands for enhanced security measures and periodic auditing of Web3 platforms.

Web3 Payment Solutions Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

27.8%

Base Year Market Size (2024)

USD 12.3 billion

Forecast Year Market Size (2037)

USD 300.7 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Web3 Payment Solutions Segmentation

Type (Cryptocurrency Payments, NFT-based Payments, Decentralized Finance (DeFi) Payment, Smart Contract-enabled Payments, Tokenized Asset Payments)

NFT-based payments segment in the web3 payment solutions market is estimated to exhibit CAGR of around 28.4% till 2037. NFTs introduce novel forms of unique digital ownership, all while opening new revenue streams for creators and corporate participants alike. Their ability to tokenize assets and grant the capability of direct transactions in decentralized ecosystems has contributed to their mass mainstream adoption. In September 2023, PayPal introduced on-ramps and off-ramps for Web3 payments, further paving the way about NFT-based transactions through easier conversions across fiat and digital.

Deployment Model (On-chain Solutions, Off-chain Solutions, Hybrid Models)

On-chain solutions segment is predicted to capture web3 payment solutions market share of around 42.5% by the end of 2037. In contrast to off-chain transactions, on-chain solutions are highly transparent, immutable, and secure since every single transaction goes directly on-chain. The demand for dApps as well as cross-border payments fuels the growth of on-chain solutions. In May of 2024, Alchemy Pay launched its Web3 Digital Bank - a sign of growing investment being placed in compliant, multi-fiat solutions for Web3 transactions.

Our in-depth analysis of the global web3 payment solutions market includes the following segments:

Type

  • Cryptocurrency Payments
  • NFT-based Payments
  • Decentralized Finance (DeFi) Payment
  • Smart Contract-enabled Payments
  • Tokenized Asset Payments

Deployment Model

  • On-chain Solutions
  • Off-chain Solutions
  • Hybrid Models

End user

  • Individual Consumers
  • SMEs
  • Large Enterprises
  • Decentralized Autonomous Organizations (DAOs)

Application

  • Peer-to-peer Transactions
  • Cross-border Remittances
  • Micropayments
  • Subscriptions & Recurring Payments
  • Loyalty & Rewards Programs
  • Others

Industry Vertical

  • E-commerce & Retail
  • Financial Services
  • Gaming & Entertainment
  • Government & Public Sector
  • Healthcare
  • Real Estate
  • Supply Chain & Logistics
  • Travel & Hospitality
  • Others

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Web3 Payment Solutions Industry - Regional Synopsis

North America Market Analysis   

North America dominated the web3 payment solutions market in 2024 and is expected to hold a share of 37.5% during the forecast period. The growth will be driven by a strong fintech ecosystem across the continent, with higher consumer acceptance for digital currencies and continuous innovation being carried out by technology companies. Major companies are actively investing in blockchain technology to advance their traditional payment processes. 

Meanwhile, Canada witnesses expansion in its web3 payment solutions sector, with increasing evidence of regulatory clarity and consumer adoption. Companies are launching various platforms that greatly facilitate the handling by merchants of several kinds of cryptocurrency payments. These further point out a shift in companies toward embracing digital currencies so that these meet consumers' desires for flexibility in payment options.

In the U.S., companies are launching web3 payment solutions as demand increases from a digital currency holder base that is fast growing. For example, Fireblocks announced a new platform in October 2022, one focused on end-to-end security infrastructure for digital asset transactions. This platform enhances the security and efficiency of cryptocurrency payments, enabling businesses to confidently incorporate digital currency transactions into their operations. This means that as regulations continue to evolve in support of digital assets, U.S. companies can now be arguably better positioned for growth in services and capturing more market share to drive industry growth within web3 payment solutions in North America.

Asia Pacific Market Analysis

Asia Pacific Web3 payment solutions market is set to observe growth of more than 15.6% through 2037. Increasing adoption of blockchain technology in the region, rising crypto transactions, and supportive government initiatives for the Web3 ecosystem drive the market. The expansion is due to countries such as India and China, which is positioning itself in the DeFi area, while China focuses on leveraging blockchain for secure and compliant transactions.

India Web3 payment solutions market is also anticipated to develop significantly due to the emerging trend of cryptocurrencies and DeFi applications across the country. The apex bank in the country, the Reserve Bank of India, in collaboration with blockchain technology, has been working on multiple aspects of CBDCs to facilitate cross-border payments. Furthermore, in September 2023, the announcement by PayPal to implement Web3 payment solutions that include smooth fiat-to-crypto conversion sealed the growth curve of digital payment services in India.

China is anticipated to emerge as a rapidly expanding web3 payment solutions market during the forecast period. The government is active in promoting web3 payment solutions in the interest of increasing transparency and efficiency in financial services. In March 2024, Alipay+ took a major step in exploring Web3 technology with the release of a voucher PoC on the Avalanche blockchain. This move further signifies a very strategic approach toward mainstream payment systems' implementation of blockchain.

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Web3 Payment Solutions Market Share
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Companies Dominating the Web3 Payment Solutions Landscape

    The competition in the Web3 payment solutions market is fierce, with companies competing to get their innovative platforms and services in place rapidly to fulfill the demand for decentralized finance. Key players like PayPal, Visa, Ant Group, Fujitsu, and Polygon Labs are using blockchain technology in developing their services. Companies make their ways known by innovating means of managing and expanding their market presence through partnerships, launching new products, and mergers, hence raising the stakes in their competition.

    Here are some leading players in the web3 payment solutions market:

    •  Circle
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ripple
    • Coinbase Commerce
    • Visa
    • PayPal
    • Stripe
    • MoonPay
    • AlchemyPay

In the News

  • In July 2024, Portal announced the launch of Portal Pay, a cutting-edge crypto payment solution designed to enhance cross-chain interoperability in Web3 games. This solution will empower developers and decentralized applications (dApps) to facilitate seamless crypto transactions across different blockchain networks, advancing the gaming experience in the Web3 space.
  • In October 2023, Mastercard announced a strategic partnership with crypto payment platform MoonPay, aimed at exploring the potential of Web3 tools to enhance experiential marketing. The collaboration focuses on leveraging blockchain technology to discover new ways for Mastercard to engage with its consumer base, solidifying its position in the evolving digital payment landscape.

Author Credits:  Abhishek Verma


  • Report ID: 6476
  • Published Date: Sep 26, 2024
  • Report Format: PDF, PPT
Web3 Payment Solutions Market Report Scope
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