Yeah it is clear that no crypto card has a sustainable business model. Clear reasons:
- The TAM for USDC holders to settle in USD is relatively small -- especially compared to the exact card market.
- If you target mass market, you either have to target US (to not face with FX fee) or you'll deal FX markups.
- If you have to deal FX markups, then you (or your user) have to pay a percentage of the payment that is sometimes higher than interchange fee
- And with the 3-5% cashbacks, they're not sustainable.
You either have to fund those programs with other revenues (like having yield program or making money with AUM) or you're loosing money.
A lot of companies are still spending their money like we're in bull market and everyone wants their neobank that has one of the worst UXs in the market.
We first need to solve the FX issue that card programs are dealing (traditional neobanks solve this with their Bank infra) , and then we can go to the mass market.
- The TAM for USDC holders to settle in USD is relatively small -- especially compared to the exact card market.
- If you target mass market, you either have to target US (to not face with FX fee) or you'll deal FX markups.
- If you have to deal FX markups, then you (or your user) have to pay a percentage of the payment that is sometimes higher than interchange fee
- And with the 3-5% cashbacks, they're not sustainable.
You either have to fund those programs with other revenues (like having yield program or making money with AUM) or you're loosing money.
A lot of companies are still spending their money like we're in bull market and everyone wants their neobank that has one of the worst UXs in the market.
We first need to solve the FX issue that card programs are dealing (traditional neobanks solve this with their Bank infra) , and then we can go to the mass market.
https://x.com/doganeth_en/status/2054963534262407339
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