Market Analysis
PaywithCrypto enters a market undergoing rapid evolution in payment preferences, blockchain
adoption, and consumer expectations. The global cryptocurrency payments market was valued at
approximately $1.5 billion in 2022, with forecasts indicating a CAGR of 15–20% over the next
five years.
6.1 Competitive Landscape
6.1.1. Custodial vs. Non-Custodial Architecture
Feature
Custodial Systems (e.g., Coinbase Commerce, Binance Pay)
Non-Custodial Systems (Pay with Crypto)
Control of Funds
Platform retains control; users rely on third-party
Merchant retains full control of the wallet
Security Risk
Vulnerable to platform breaches or freezes
Less central attack surface
Compliance
Easier to integrate KYC/AML directly
KYC via partners, with on-chain transparency
Flexibility
Often limited to the internal wallet ecosystem
Works with MetaMask, Trust Wallet, etc.
User Trust
It depends on trust in the platform
Based on self-custody principles
Settlement
Funds settled internally may involve a delay
Direct wallet-to-wallet settlement
6.1.2. Key Drivers:
Widespread blockchain adoption and development of interoperable protocols
Increasing demand for decentralized finance (DeFi) and self-custody tools
Lower transaction costs and chargeback elimination in crypto transactions
Surge in global cross-border transactions requires efficient, borderless systems.
Growing regulatory clarity in crypto-forward regions like Southeast Asia
6.1.3. Technical Market Context
As of 2024, over 500 million active crypto wallets are in use globally, with daily blockchain activity exceeding 10 million transactions across Ethereum, BNB Chain, Solana, and Polygon.
•USDT is projected to settle over $27 trillion in 2024, surpassing the combined annual volume of Visa and Mastercard by approximately 40%.USDT alone settled more than $18.2 trillion in 2022, surpassing the volume of Visa and Mastercard combined.
Southeast Asia leads the world in DeFi adoption, driven by mobile-first financial behavior, remittance inflows, and low trust in traditional banking.
6.1.4. Regional Trends:
Thailand is emerging as a government-supported blockchain sandbox with the Bank of Thailand piloting central bank digital currencies (CBDCs)
Vietnam and the Philippines rank among the top countries in crypto ownership and remittance reliance.
LATAM nations like Brazil, Argentina, and Venezuela are showing strong demand for stablecoin usage due to hyperinflation and currency controls.
6.2 Relevant Case Study
6.3.1. Latin America (LATAM):
The LATAM blockchain market reached $800 million in 2023 and is expected to grow by 54% annually, reaching $39.7 billion by 2032.
Asset tokenization is set to revolutionize Latin America's financial landscape, enhancing financial systems and fostering economic inclusivity in a region where financial access remains a significant challenge.
Brazil is among the most advanced countries in the region in developing blockchain technology, promoting the Drex (Real Digital) project.
6.3.2. Southeast Asia (SEA):
Thailand is making bold strides to integrate blockchain technology into its economy, with Phuket emerging as a central hub for digital innovation.
The government's initiative encourages the use of cryptocurrency in tourism, enabling visitors to enjoy seamless digital transactions while fully complying with regulations.
This initiative reflects Thailand’s broader strategy to embrace digital assets within its financial system, reinforcing its position as a regional leader in blockchain adoption.
6.4 Market Opportunity: Phuket, Thailand
PaywithCrypto’s first deployment hub is Phuket, Thailand, a region experiencing one of the highest concentrations of crypto activity in Southeast Asia. This is especially driven by a large community of over 1 million Russian residents, many of whom are long-term tourists, expats, or digital nomads.
Due to sanctions, banking restrictions, or residency limitations, many Russians in Phuket cannot access traditional banking tools such as Visa, Mastercard, or local bank accounts. Their primary spending instrument is cryptocurrency, particularly USDT (Tether).
Currently, their workaround includes converting crypto through local OTC (Over The Counter) desks. These services allow them to swap USDT to THB, usually on a daily or weekly basis, which they then use for daily expenses like food, rent, transportation, and shopping.
6.4.1. Key Data Points
Over $20 million USD worth of crypto is converted daily in Phuket via licensed OTCs.
Underground OTC channels may push the total above $50 million USD daily, according to unofficial estimates.
These transactions occur outside the digital retail ecosystem, adding inefficiency, risk, and delay to everyday payments.
With this model, we unlock massive utility for an underserved population while helping the local economy transition into compliant, blockchain-friendly commerce.
200,000 Russian residents
Daily crypto demand: USDT 20M
Annual market: USDT 7.3B
Revenue potential: USDT 400K/day or 146M/year via 2% FX spread.
Thailand’s forward-looking blockchain policies support seamless adoption in tourism hotspots, making it the ideal launchpad.
6.5. Comparison of Market Players
Provider
POS
Crypto Support
Fiat Conversion
Fees
Ecosystem Control
PaywithCrypto
✔️
✔️
✔️
❌
Non-Custodial
Terminus
❌
✔️
✔️
✔️
❌
Pundi X
✔️
✔️
✔️
✔️
Semi-custodial
GoCrypto
❌
✔️
✔️
✔️
Semi-custodial
6.5.1 Competitive Edge
Non-Custodial Design
Merchants retain full control of their crypto or choose to instantly convert to fiat via licensed partners like COINS. No platform custody = higher trust and flexibility.
Physical + Soft POS System Offers a dedicated portable hardware POS with QR scan functionality and a mobile soft POS option, giving flexibility to both large and small businesses.
Licensed Local Partnerships Strategic collaboration with COINS (Thailand) allows legally compliant crypto-to-fiat conversion and settlement directly to merchants' bank accounts.
Regulatory-Ready Infrastructure Integrated KYC/KYB and AML safeguards via partners—ensuring adoption can scale with government oversight without compromising on decentralization.
Focus on Real-World Utility Designed specifically for underbanked regions and expat-dense zones like Phuket, enabling crypto holders to use assets for everyday spending—solving a real problem.
Zero Transaction Fees for Merchants While competitors charge 0.5%–2% per transaction, PaywithCrypto charges nothing on merchant-side and instead monetizes through hardware, subscriptions, and partnerships
PaywithCrypto is the only player in the market offering a non-custodial, hardware-ready, fiat-converting crypto POS system tailor-made for emerging markets and real-world usage—backed by local legal infrastructure. While others serve online-first or plugin-only use cases, PWC is building the rails for street-level crypto commerce.
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