In a landscape dominated by complex regulations and costly banking systems, the rise of cryptocurrencies has sparked discussions about their potential to reshape payments. Kate Lifshits, the CEO of NOWPayments, shared her insights on how crypto can simplify transactions in Europe’s highly regulated market.
Navigating European Regulations
Europe’s regulatory environment is notoriously strict, and navigating it can be a challenge for any company, particularly those dealing with crypto. Kate emphasizes the importance of compliance, and NOWPayments is striving to meet all necessary requirements.
“Each country has its own regulations, and we understand that,” she says. “That’s why we’re actively pursuing the MiCA (Markets in Crypto-Assets) regulatory framework. It’s about securing the right licenses, but it’s also about being check-ready. We have a full compliance department ensuring that everything from KYC/KYB to transaction tracking is in place.”
But it’s not just about paperwork; it’s about preparing for the future. Kate underscores the significance of having the necessary technology in place to comply with these regulations, emphasizing that having the right tools is crucial.
Reducing Fees with Crypto
One of the most significant pain points for businesses today is the high cost of traditional banking. With banking fees sometimes reaching as high as 10%, many wonder if crypto could offer a more affordable alternative. Kate has a simple answer: absolutely.
“Traditional banking fees can range from 4% to 10%, and that’s just for transfers between European countries,” she explains. “But with crypto, the fees are much lower, around 0.5% to 1%. No matter where the transaction is, those fees don’t increase. There are some network fees, but they’re still a fraction of what you’d pay with a bank.”
For businesses that need to make cross-border payments, this can be a game-changer.
Debunking the Security Myth
Security is another major concern when it comes to crypto, especially given how often banks tout their own security features. But Kate insists that crypto can be just as secure, if not more so.
“It’s actually a misconception that crypto isn’t secure,” she says. “The truth is, it can be even more secure than banks. Banks rely on intermediaries, humans, who can make mistakes or be compromised. With crypto, there are no intermediaries; the blockchain itself handles the security.”
She goes on to explain how NOWPayments offers both custodial and non-custodial models. In the non-custodial model, funds go directly to the merchant without touching NOWPayments’ systems.
“Security is the key factor here,” Kate continues. “In fact, our systems have never been hacked. It’s a tech-driven solution that traditional banks can’t offer.”
Building Trust with Stablecoins
Stablecoins have become a trusted bridge for people new to the crypto world. These digital currencies, such as USDT and USDC, provide stability and are often considered a safer bet than volatile cryptocurrencies.
“Stablecoins are like a digital dollar but without the volatility,” Kate explains. “For people in unbanked regions, stablecoins are a way into the financial ecosystem. It’s cheaper than using traditional fiat currencies, and with us, there are zero network fees for transactions with USDT or USDC.”
This unique offer helps make crypto more accessible to businesses and individuals alike, particularly in regions where access to traditional banking is limited.
Crypto in the Gaming Industry
Kate also sees a massive opportunity for the gaming industry to adopt crypto payments. Whether for online casinos or gaming operators, integrating crypto can offer speed and lower transaction fees, all while expanding their reach.
“Gaming companies can use crypto payments to enhance their user experience,” she says. “The tech is already there to process payments quickly, and it’s easier to onboard users who already own crypto.”
She also highlights an intriguing feature for companies that might be hesitant about losing customers who don’t use crypto yet.
“We offer off-ramping, which means casinos can accept fiat payments like USD but still receive crypto, USDT, for example, allowing them to enjoy all the benefits of lower fees and faster transactions.”
This flexibility, according to Kate, allows companies to embrace both fiat and crypto payments, expanding their user base and offering better services.
Final thoughts
Kate Lifshits’ perspective on crypto in the European market reveals just how much potential there is for disruption. By reducing fees, improving security, and offering better access to financial systems, cryptocurrencies are more than just a trend, they’re a business development tool.
“It’s about embracing both sectors, crypto and fiat, and expanding your user base,” Kate concludes. “In a world where speed and flexibility are key, crypto provides businesses with a unique edge.”
For companies in Europe and beyond, adopting crypto could be the key to navigating the complexities of payment systems while opening up new opportunities for growth.