People who make encryption payments are all asking the same question:

“Which road can really make money?”

I've heard many industry stories, but there are really not many that can actually make money.

Today I want to strip away all the “mysticism” outside and just talk about reality:

The only three categories where encryption payments are truly profitable now are: channels, compliance, and high-risk services. Other directions are basically powered by love.

By understanding these three categories, you basically know where the money flows in this industry, where the barriers are, and how you should enter the market.

Channel: The Eternal First Source of Profit (and it will get more expensive)

If you strip down the business models of all encryption payment institutions to the bone, only one question remains:

Who can send money to its destination the fastest, the most securely, and with the least trouble?

If you can do this, you can collect fees, take a bit of a spread, and gain some stickiness.

(1) U ↔ Fiat currency deposit/withdrawal

This is the “vascular system” of the entire industry. All Web3 projects, gaming companies, cross-border trade, and e-commerce cannot bypass this matter.

Why make money?

• High demand
• High Frequency
• Cost controllable
• Spread + fee has room

Transaction fees ranging from 0.3% to 2% have buyers willing to pay.

Future regulations will only become stricter, which means:

Channels will become more expensive, and there will be fewer people who can do it.

(2) Enterprise Cross-Border Payments (Salaries, Supply Chain, Global Settlements)

Obvious trend: Companies no longer want to distinguish between “fiat vs stablecoin”; they just want it to be usable, cheap, and fast.

More and more companies will:

• Pay global freelancers with USDT
• Pay suppliers with USDC
• Even use stablecoins for part of the settlement

Enterprises do not care whether it is on the chain or not, they only care about “speed, stability, and compliance.”

Being able to help enterprises handle cross-border wages and cross-border settlements is itself a very profitable business.

(3) Bank-level On-chain Payments (Tokenized Deposits / Stablecoin Enterprise Settlements)

Citibank, HSBC, and Standard Chartered have all issued their own on-chain “deposit tokens.”

This indicates a reality:

Bank-level cross-border payments are also beginning to migrate to the blockchain. When you see banks issuing tokens, it is a sign that the industry is entering a mature phase.

The profit margin for B2B large-scale cross-border transactions is far more stable than that of the retail sector. This area is expected to explode in the future because it truly addresses the old issues of “large-scale cross-border payments”: slow, expensive, and opaque.

Compliance: It may seem abstract, but this is the “true moat” of encryption payments

The further you go, the more obvious it becomes: you will find that in the encryption payment industry, what is most valuable in encryption payment is not “technology”, but “compliance capability”.

Many enterprises do not want to spend a year and a half applying for a license, nor do they want to bear the risk of rejection, so they choose:

“Rent” others' licenses, structures, KYC systems, and risk control systems.

This is “license as a service”.

Common rentable compliance capabilities include:

• US MSB
• Hong Kong VA1 Token Brokerage Interface (omnibus)
• Singapore MPI+DPT
• EU CASP
• Cayman VASP
• UAE's virtual asset light license
• Hong Kong/MSO's fiat gateway (does not touch U)

The logic of demand is simple: Instead of spending a year applying for a license, it’s better to integrate in a month.

The profit structure of this type of service is stable in the long term:

Fixed monthly fee + per usage fee.

Essentially, it is a subscription service that sells “compliance capabilities.”

Risk: Highest profit, but not everyone dares to do it

As long as it is a service that “banks don't like to do but the market really needs”, the profits are very high. Such businesses generally start with a handling fee of 3%–10%, but you have to take on all the responsibilities of KYC, risk control, chargebacks, and being “greeted” by the bank.

For example:

• NFT, payment collection for blockchain game projects
• Hashrate Project
• High-risk content websites
• Cross-border e-commerce in certain countries
• Node Staking/Miner Business
• Game Recharge
• AI Content Charging Platform

Transaction fees range from 3% to 10%.

The reason is simple:

Regular institutions dare not act, those who dare to act can collect premiums.

However —— the risk control and compliance pressure for this type of business is very high, without experience, it is easy to fail.

The Three Most Certain Growth Tracks in the Next Three Years

I summarized the most obvious trends in the industry into three sentences:

1. Enterprise-grade stablecoin cross-border payments will become the next hundred billion market

USDC/EURC/tokenized deposits have exploded this year.

Citibank, Standard Chartered, and HSBC have announced their entry.

Whoever can help enterprises run stablecoin cross-border settlements will be able to seize the biggest cake for the next three years.

2. On-chain salary (Crypto Payroll) moves from the fringe to the mainstream

Traditional payroll does not handle cross-border + stablecoins well.

Web3 project teams and AI companies are hiring globally, turning on-chain salaries into everyday system requirements.

This will eventually run out as a “Deel for on-chain compensation.”

3. The combination of license + structure + interface services will continue to be strong

The past model of “each finding their own suppliers” is disappearing.

Now companies are more willing to directly purchase: structural design, compliance system, KYC/AML, complete document package, and an operational channel (MSB, VA1, MPI, CASP, etc.)

Companies are willing to pay for this overall solution of “from design to implementation.” This is a long-term, stable, and continuous growth direction.

How should the bosses get involved?

In a nutshell:

Choose the type that you can do, do not try to cover all three types.

• If you have channel resources → Create a channel
• If you have local entities and risk control capabilities → Sell compliance
• If you have scenarios and merchants → Make high-risk payments
• If you have nothing → Start with “Helping businesses run stablecoin payments”

This industry makes money not by gimmicks, but by solid execution capabilities.

What services can I provide if you are ready to enter encryption payments?

Many bosses will ask at this point:

“Then I will make an encryption payment, what specifically can you help me with?”

Let me summarize the core services we have been providing for many years in Web3, payment, U Card, and stablecoin projects, which are all “practical and usable things”:

(1) Help you design a “regulatory acceptable” business model

• Can your business be done
• Which links cannot be touched
• How to design to avoid crossing the red line
• How to get banks to accept your structure
• How to connect with brokers, PSP, VATP

(2) Help you set up cross-border structures (Hong Kong / Singapore / BVI / Cayman / EU)

• Should I apply for a license? What license should I apply for?
• Where is the main body opened? How to layer?
• How to isolate risks and smooth the capital chain?
• How can the structure meet both commercial and regulatory requirements?

(3) Help you complete the entire set of compliance documents

including but not limited to:

• User Agreement
• Merchant Agreement
• Privacy Policy
• AML/KYC Policy
• Risk Control System
• Internal Control System
• Cooperation Agreement for Issuing Cards/Acquiring/Channels
• A complete set of documents required for bank/broker/platform integration

These are the keys to whether a business can operate smoothly.

(4) Helping you truly connect with banks, brokers, VATP, and channel providers

Not in concept, but in practice:

• How to open a bank account with MSB?
• How does Hong Kong MSO connect for receiving payments?
• Can VA1 open the omnibus mode for you?
• How to go through the proper route for stablecoin deposits and withdrawals?
• How to achieve the compliant landing of USDC → fiat?

(5) Help you design stablecoin payment/on-chain salary solutions

Includes:

• How to pay global employees with USDC
• How to ensure enterprises conduct stablecoin settlements without “crossing the line”
• How to integrate on-chain payments into your actual business scenario

In one sentence:

You want to make payments, I can help you streamline the entire process from “business design → compliance structure → document system → bank channel” until it can truly go live and operate.