Exploring the Future of Crypto Payments with CoinsPaid CEO, Max Krupyshev

Introducing Max Krupyshev, Co-Founder and CEO of CoinsPaid, ready to share his insights with the CasinoRIX team. Max is here to spill the beans on how CoinsPaid became a global player in crypto payments. Join us as we explore Max’s journey, vision, and the exciting future of cryptocurrency transactions together.

Q: How do you see the cryptocurrency market overall, especially Bitcoin, in 2024? It’s interesting to hear your perspective as an expert.

A: Crypto.com’s recent ’Market Sizing’ report offers an interesting insight: the number of crypto owners worldwide has jumped by 34% in 2023, hitting 580 million. Even more so, according to the 2022 Boston Consulting Group (BCG) report, the number of crypto users is likely to surpass the 1 billion mark by 2030. So, what’s behind this crypto craze?

Of course, we should mention the apparent bull run on Bitcoin: in mid-March, BTC smashed the $70,000 resistance to reach an all-time high. Altcoins, led by Ethereum, are also on the rise. This rebound has captured the attention of investors, especially with the SEC giving the green light to a number of Bitcoin Spot ETFs. CoinShares reports that the digital asset investment products saw continued positive sentiment with inflows totalling $646M as of April 8th, while the year-to-date inflows are estimated at $13.8B, their highest ever level, now far exceeding the $10.6B seen in 2021.

Of course, we shouldn’t disregard the inherent volatility of cryptocurrencies: the price of Bitcoin, as well as investment flow dynamics, are changing constantly, with ups and downs being an ordinary occurrence for any financial market. Still, we can see a positive trend in terms of digital asset adoption. 

Additionally, the crypto payments sector is constantly growing and evolving with the demand for digital asset payments increasing among businesses and their clients. According to the sensitivity analysis by Bing Ventures and Alchemy Pay, based on the penetration rate (0.5%-10%) and crypto market growth rate (7.5%-10.5%), the payments industry can reach $316 to $362 billion within the next three years.

CEO of CoinsPaid, Max Krupyshev, commented: “The substantial use of DeFi points toward a more mature market where crypto is not just held as an investment but is actively being used for transactions and payments”.

Q: Could you tell us more about CoinsPaid? Is your company really leading the way as the number one Crypto Payment Solutions provider worldwide? And what factors do you think are driving your rapid growth?

A: CoinsPaid is an Estonian-licensed leading payment ecosystem of ready-to-use crypto solutions for businesses. It is an international fintech company with over 10 years of crypto expertise, helping merchants to legally accept over 20 top digital assets with instant exchange into fiat; reduce processing costs compared to traditional PSPs; open new markets and stay ahead of the curve on the global arena. Currently, the company serves over 800 merchant accounts with millions of their end-user transactions entrusted to us.

Businesses choose CoinsPaid for a multitude of reasons. First of all, it’s the convenience and straightforwardness of the solutions. We turn complex blockchain systems into user-friendly functionality, shielding our merchants from the complexities of crypto payments. Our solutions are designed to satisfy the needs of any business model through multiple payment methods supported, including invoices and automated channels. 

Secondly, it’s the security and reliability of our services. The platform undergoes independent security audits by reputable firms like 10Guards and HACKEN, minimising the vulnerabilities. Additionally, CoinsPaid employs a multilevel risk-scoring system and implements stringent security protocols to safeguard against cyber threats and fraudulent activities.

Personalised support is another hallmark of the CoinsPaid experience. Each merchant is assigned a dedicated personal manager who offers tailored assistance and guidance throughout the integration process and beyond. The platform provides 24/7 customer support, ensuring prompt resolution of any issues or queries. All this helps us to stand out in the crowded market of crypto payment providers and be chosen by hundreds of merchants. 

In conclusion, our growth can be attributed to a combination of full-fledged crypto functionality, excellent support, as well as the growing global trust in crypto payments. Thanks to all the factors mentioned above, our company emerged triumphant throughout 2023: CoinsPaid established itself as the most awarded payment gateway of the year, including recognition by Forbes as the Best Crypto Payment Gateway for High-Volume Transactions.

Q: Which industry brings you the most clients or volume: e-commerce, iGaming, fintech, Forex?

A: We work with merchants across various industries, without significant restrictions based on clients’ business sectors or geographical locations. The only exception is a blacklist of countries where the use of crypto is restricted. Our primary target audience comprises large businesses involved in the sale of goods or provision of services online. 

Indeed, a significant portion of our clients come from iGaming. Nonetheless, we are also witnessing a surge in crypto adoption within the lower-risk industry, including eCommerce, Software, Luxury Retail, Travel and Hospitality, Automotive, and Food and Dining. Crypto payments are particularly attractive to startups keen on cutting-edge technology and reducing transaction fees and operational costs. Meanwhile, larger, established companies like Microsoft, Shopify, PayPal, and Starbucks are using crypto to enhance customer experiences and set the trend for adopting crypto payments.

At CoinsPaid, we are interested in scaling our business to new markets and territories, responding to the increasing demand for our services. We are eager to continue delivering top-notch service to our merchants, assisting them with streamlining user experiences and reducing processing costs by offering fast, secure, and legal transactions.

Q: When we look at the data by geography, which regions are generating the most revenue?

A: At the moment Europe is the region generating the most revenue for us. This is mostly due to our established presence, legal expertise, and robust operations within European markets. In general, the penetration of cryptocurrencies for payments in European countries is on the rise, considering the development and implementation of MiCA and the growing trust in crypto among users, investors, and regulators. 

However, we are actively scaling up our business and acquiring new licenses, which will enable us to enter new markets and territories. These expansions are part of our strategic plan to diversify our geographic reach and tap into new markets as well as influence the mass adoption of digital payments across the globe. 

Q: During 2020-2021, there was a trend of Crypto Casinos emerging in the iGaming industry. Did this trend contribute to the growth of your company? And what’s the breakdown of Crypto payments in iGaming compared to other sectors?

A: This trend is still persistent, with online casinos increasingly recognising the integration of crypto payments as the most effective method to reach players worldwide and scale into global markets. Driven by growing industry demand, early adopters are actively seeking payment solutions that enable their players to place crypto bets. And yes, we are witnessing a spike in the interest of online casinos to integrate crypto payments into their infrastructure. Evidently, this trend is contributing to the growth of our company.

I think the mentioned trend will continue to exist among crypto casinos. Crypto payments can give casinos a competitive edge and position them as forward-thinking establishments. According to the latest Bitcoin casino statistics, crypto gamblers bet $3 million worth of crypto daily, and about 50% of all Bitcoin transactions are related to gambling. Thus, online casinos can attract tech-savvy players who are early adopters of innovative technologies. 

In addition to streamlining players’ experience, some of the hardest payment challenges, such as chargebacks and settlement delays, are taken off operators’ shoulders. Along with this, one major advantage is lower transaction costs. 

Finally, the growing crypto audience, with 580 million users worldwide, is one more reason explaining why a trend of crypto casinos emerging in the iGaming industry will continue to be persistent.

Q: There’s a lot of talk about AI these days. Does CoinsPaid utilize these technologies? Are there any interesting solutions in this area from your point of view?

A: Indeed, AI emerges as a valuable tool for streamlining operations within our company and optimising work across multiple departments. Moreover, it’s extremely interesting to observe the transformation in the AI sector and follow innovations, together with exploring new and new potential channels for its application. 

However, like with any technology, we believe it’s crucial to ensure its ethical utilisation. At CoinsPaid, we view it as an additional tool for increasing efficiency. For example, some of the most popular Chatbots and Virtual assistants for standardised work are used in our marketing department to boost video content creation, processes optimisation, etc. It’s also exciting to observe how innovations in predictive analytics, especially with large amounts of data, will evolve and become more automated. 

Q: Is Tether the second most used cryptocurrency after Bitcoin in terms of payments? And is its volume increasing?

A: In fact, it is currently the most used cryptocurrency for payments in terms of the number of transactions. Our internal data shows that stablecoin usage is on the rise. 

Over the course of 2023, Bitcoin’s share in our total transactions experienced a dip, reducing from 72% in January to 42% by the end of the year. Stablecoins payments, on the contrary, increased from 11% to 18%. Tether (USDT) specifically accounted for 15% of the total transactions throughout 2023. That being said, traditional cryptocurrencies are not entirely going out of fashion. Our data shows that the number of Ethereum transactions rose from 4% to 6% in 2023, while Litecoin usage jumped from 6% to 20%. It appears users are diversifying their crypto portfolios, increasingly looking for digital assets other than Bitcoin.    

This shift in user preference is even more pronounced when we look at transaction volume. Our data shows that in 2023, stablecoins made up 73% of the overall transaction volume, with USDT payments amounting to 72%, while Bitcoin transactions made up only 19%. 

Stablecoins have become an effective tool to negate the inherent volatility of cryptocurrencies, including Bitcoin, and we expect this trend to continue in 2024. 

Still, for those merchants and clients who favour BTC and altcoins, CoinsPaid suggests a robust solution to combat transaction price fluctuations: our system freezes the exchange rate for five minutes after initiating a payment, applicable to any selected currency, thus preventing any price changes during this critical period. Furthermore, our system enables merchants to instantly convert crypto into 40 fiat currencies with further withdrawal to a bank account. 

These conversion mechanisms in combination with a wide support for stablecoins ensure that businesses can accept crypto without worrying about volatility. 

Q: Why is there an increasing need for KYC in exchanges? Is this related to the beginning of regulatory efforts?

A: The increasing importance of KYB and KYC measures in the crypto space, especially for payment providers, reflects the maturing of the digital asset industry and its continued adoption across the globe. As the number of businesses and end users interacting with crypto surges, a clear regulatory landscape is crucial to ensure transparency, protection, and security for all parties. 

Europe is leading the race with the Markets in Crypto-Assets (MiCA) regulations, marking a significant step towards the establishment of a comprehensive regulatory framework for digital assets, providing businesses with clear guidelines on working with cryptocurrencies, addressing consumer protection, market integrity, and financial stability. 

Thus, it is crucial for businesses and their end users to choose legal providers. CoinsPaid is a licensed crypto processor, committed to the highest industry standards of compliance to KYB, and AML regulations, especially considering the fact that crypto regulation in Estonia is one of the strictest in the EU. Working with us, merchants can be confident in the security and legality of our operations. Moreover, we keep our clients informed about the latest changes in legislation related to cryptocurrency payments, ensuring they are always aware of any important updates.

This approach contributes significantly to the overall integrity of the cryptocurrency market, establishing a stable and reliable ecosystem for business operations.

Q: How fast are cryptocurrencies being legalized globally?

A: The transition of cryptocurrencies from a speculative investment to a new asset class has prompted governments around the world to find ways to regulate it. The pace at which digital assets are being legalised and regulated globally varies considerably, reflecting a complex and evolving landscape. Some governments have already created frameworks for crypto regulation, while others bide their time.

Currently, we are witnessing a race to the top among jurisdictions competing to have the most robust regulatory frameworks to attract commercial growth and innovation, and, at the same time, become the hub for digital assets. UK, EU, UAE, Bahrain, Japan, Hong Kong, and Singapore are key players in this race. 

The European Union is poised to take a significant leap forward with the introduction of the MiCA regulations. Once MiCA becomes fully applicable, we can expect a significant spike in the willingness of low-risk businesses to enable crypto payments.

While the European Union was the first to adopt measures requiring crypto service providers to detect and stop illicit cryptocurrency uses, the US is at a crossroads regarding crypto regulation. Nevertheless, the SEC is not standing aside, as demonstrated by its lengthy list of filings against crypto-centric businesses and projects, such as lawsuits and complaints against Ripple, Coinbase, Binance, and many others. However, we are witnessing a number of successful legal battles by blockchain entities against US regulators, coupled with optimism surrounding the approval of a Bitcoin ETF by the SEC. 

Finally, although Bitcoin was introduced 15 years ago and cryptocurrencies have already become an integral part of the global economy, some governments and regulators tend to move slowly due to the lack of knowledge on how to approach the new industry. 

Overall, we can confidently say that the cryptocurrency market is developing rapidly, and governments around the world are beginning to recognise the importance of digital assets at a different pace. 

Q: Finally, could you share your company’s plans for the next couple of years?

A: Looking ahead to 2024, CoinsPaid is doubling down on strengthening the trust our clients have in our services. The hurdles we faced last year resulted in us strengthening our security measures to ensure a safe environment for our merchants. 

However, security isn’t our sole focus. We’re equally dedicated to enhancing the efficiency and reliability of our products. This commitment has led us to actively seek out top-notch talent and invest in the continuous development of our current team. As a result, we’re equipped to offer cutting-edge solutions that meet the diverse payment requirements of our merchants, including features like Mass Payouts and integration with faster and more cost-efficient blockchains.

We are also focusing on refining our internal processes through a comprehensive evaluation of our operational strategies. Simultaneously, we’re broadening our reach by preparing to enter the US market and establishing new hubs in Poland and Lithuania.

Finally, to ensure our evolving goals and guiding principles are clearly communicated to our clients and partners, we’ve ramped up our marketing activities and launched a rebranding campaign.