Crypto exchanges scramble to find user banking solutions FinXP has the answer

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Naxxar, Malta | May 16, 2023 9:45 a.m. Eastern Daylight Time

By David Willey, Benzinga

There is a gap in the financial services market when it comes to integrating crypto into the traditional financial system. FinXP is a European fintech company working to bridge this gap and help drive crypto adoption. It is a trusted partner for crypto companies in need of fiat banking and payment solutions; solutions now notoriously limited in the industry.

Although there is mistrust of crypto in the traditional financial industry, the use and adoption of crypto continues to grow. The global cryptocurrency market was worth $4.67 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.5% ​​from 2023 to 2030.

The average daily crypto trading volume sits at around $50 billion. In 2020, more than 120 million financial transactions were made with Bitcoin, the largest and most valuable crypto.

By 2027, the crypto is expected to have over 993 million users worldwide. This will increase user penetration from its current rate of 8.8% to approximately 12.5% ​​globally. However, there is a significant hurdle that hinders retail adoption of crypto. This is the difficulty many have in finding an on-ramp to easily convert between crypto and fiat currency.

Traditional banking institutions have been skeptical of crypto adoption and transactions with crypto exchanges. The problem has worsened in the short term as major players in the cryptocurrency banking industry, such as Signature Bank and Silvergate Bank, have exited the industry.

Over the past few months, steps have also been taken by regulators in an attempt to slow down transactions between crypto exchanges and banks. In 2020, 63% of financial institutions still described crypto as a risk rather than an opportunity.

Allowing users to deposit and withdraw fiat funds through crypto exchanges is key to onboarding the growing crypto user base. This gap in the fintech market has created space for forward-thinking alternatives to traditional banking.

Why exchanges are turning to closed-loop payments

One solution that seems to be gaining traction in the fintech space is closed-loop payment. A closed loop payment system is where end user and merchant share a common payment ecosystem.

If a crypto exchange and its users hold accounts with the same banking partner, payments between them would be fast, approval would be almost guaranteed, and cross-border payments would not be a problem.

User accounts could also be linked to debit cards allowing individuals to more easily spend or withdraw their funds, thus adding to the usefulness of the account.

Closed-loop payment systems are growing in popularity, with nearly two-thirds of fintech and payment companies saying they will launch a closed-loop payment product by the end of 2023. One of the reasons for their popularity is their high transaction approval rate and capacity. simplify and speed up cross-border transactions.

FinXP is one of the leading closed loop payment providers for crypto exchanges. As an award-winning payments and banking solutions provider, FinXP stands out not only by providing banking solutions to the crypto industry, but also by offering several payment processing solutions.

The company works with crypto exchanges and crypto wallet providers to provide specialized custom payment solutions. He believes that many crypto investors are willing to open an IBAN account specifically to facilitate trading and investing in crypto. He is confident that his solutions can help drive crypto adoption and increase customer loyalty.

Visit the FinXPs website to learn more about the company, or stay up to date with industry news and subscribe to the FinXPs newsletter.

Read Benzinga’s previous coverage on FinXP here.

FinXP, founded in 2014, is a Malta-based electronic money institution licensed by the Malta Financial Services Authority. The company’s mission is to enable its customers to quickly and easily make and receive payments in the form that suits them best. The company is registered with the European Payments Council and SWIFT, and is a principal member of Mastercard. FinXP provides dedicated IBAN accounts, card issuance, omnichannel payment processing, one-stop payment solutions, SEPA direct debit services and clearing services. It is a growing player in the European PayTech industry.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice.

Contact details

Jens Podewski

[email protected]

Company Website

Tags CryptocurrencyFintech

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