The Future of Encryption Payments: Why Infrastructure, Not Hype, Will Determine the Next Wave in the Industry?

The environment for encryption payments is shifting from speculative frenzy to foundational development, said Kyrrex COO and founder Mike Romanenko. As the industry matures, solid foundations such as business-to-business payment infrastructure, user experience (UX), and regulation are crucial for its scalability and large-scale application. This article will delve into why the future of encryption payments will be determined by the construction of its underlying infrastructure rather than short-term market speculation.

1. Trust and compliance infrastructure are the cornerstones of sustainable growth

As encryption payments move from early adopters to the mainstream, the demand for infrastructure to establish trust has also emerged. Consumers and merchants need to ensure that transactions are secure, auditable, and compliant with financial standards. To meet the needs of institutional partners and users, many companies are voluntarily implementing industry best practices for compliance, custody, and identity verification. However, this does not mean that regulation is the only driving force.

The EU's MiCA regulations, along with initiatives from the UAE, the UK, and Hong Kong, represent a consensus that relies on transparency rather than control in adopting these regulations. The industry is now turning its attention to tools aimed at achieving transparent operations and reducing operational risks, rather than just focusing on legal technology. The industry has evolved to incorporate "Know Your Customer" (KYC), Anti-Money Laundering (AML), and reporting standards into the early stages of the development of encryption payment platforms.

Data shows that the environment has undergone significant changes. According to data from Chainalysis, the scale of illegal encryption activities reached approximately 40.9 billion USD in 2024. This fully illustrates the role that compliance technology plays in combating financial crime and building trust in the encryption field. As the industry continues to develop, focusing on trust and a sound compliance system will become key to the sustainable development of enterprises. Companies that pay attention to this are more likely to succeed, while others may struggle to establish themselves.

2. User Experience and Features: Enhance User and Merchant Experience

The development direction of cryptocurrency payments mainly focuses on making it more convenient and practical for users.

Stripe and CEX Collaboration: Aiming to make cryptocurrency transactions smoother. Stripe has integrated support for USDC across its entire suite of cryptocurrency products, allowing for faster and more economical remittances to over 150 countries/regions. At the same time, CEX has added Stripe's fiat-to-cryptocurrency channel to its wallet, enabling users to purchase cryptocurrency instantly using credit cards or Apple Pay.

The entry of traditional payment giants like Visa and Mastercard: Visa has partnered with the startup Bridge to launch a Visa card linked to stablecoins, allowing consumers in Latin America to use encryption in their everyday shopping. These cards convert stablecoin balances into local currency during transactions, making it convenient to use at any store that accepts Visa cards. Mastercard is also expanding its stablecoin capabilities by partnering with companies like Circle, allowing merchants to accept stablecoin payments. This move comes as stablecoin transaction volumes surge, reaching $35 trillion between February 2024 and February 2025.

All these measures reflect a clear trend: integrating encryption functions with traditional finance to provide users and businesses with more flexible and efficient payment methods. By enhancing user experience and fully leveraging existing systems, these collaborations are a key step in bringing encryption payments into everyday life.

3. Business to Business Payment Channels: Expanding Enterprise-Level Transactions

The institutional blockchain network is changing the boundaries of corporate transactions. A significant innovation is the concept verification of the Regulated Settlement Network (RSN) conducted by participants in the U.S. financial industry. The initiative explores the potential of shared ledger technology for the settlement of multi-asset and cross-network transactions, such as tokenized U.S. Treasury bonds and cash. The RSN demonstrates the possibility of an around-the-clock programmable settlement infrastructure that can enhance liquidity management and reduce operational risks for financial institutions.

Cross-border payment technology is also undergoing transformation, as noted in the Financial Stability Board (FSB) report for 2024, which highlights progress in standardizing payment systems. These advancements include the adoption of the ISO 20022 packet transmission standard and efforts to connect fast payment systems globally. This aims to make cross-border payments faster, cheaper, more transparent, and more inclusive, aligning with the G20 roadmap objectives. By enabling standardization and interoperability, these initiatives will help enhance the efficiency and availability of international enterprises' cross-border transactions.

4. Why Companies Should Pay Attention to Encryption Currency and What Factors to Consider When Choosing Partners

As payment channels for businesses become more mature, encryption has not only become feasible but also holds strategic significance for global enterprises. Blockchain-based solutions are increasingly meeting the operational needs of large companies. Pioneer enterprises are beginning to explore encryption as a way to optimize financial flexibility, balance capital operations, and build future-oriented payment infrastructure.

However, incorporating cryptocurrency into business processes requires careful selection of partners. In addition to technology, companies must also weigh vendors' compliance, integration with traditional financial infrastructure, and cross-regional scalability. Licensing status, interoperability, security practices, and institutional client expertise are all critical considerations. Today, the infrastructure is largely in place, and choosing the right partners is crucial not only for delivery but also for embracing the new wave of cross-border cryptocurrency applications.

Conclusion:

The future of encryption payments is not determined by hype, but rather by how long the currently built infrastructure can last. Trust and compliance frameworks are paving the way for long-term expansion, and industry participants welcome open standards that can establish trust with institutions and consumers. At the same time, enhancements in user experience—such as the collaboration between Stripe and CEX, as well as the integration of stablecoins with Visa and Mastercard—are also accelerating the standardization process of cryptocurrency payments. Behind the scenes, enterprise-level developments in multinational systems and settlement networks are empowering the scale needed for global applications. Although the infrastructure is quietly transforming, cryptocurrency is gradually becoming an indispensable part of the future financial system, rather than an alternative.