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GM!

We’re back with your daily dose of consumer crypto-focused reading. 

I know the long weekend’s coming up fast, so let’s jump right in.

— Kate Irwin

Opinion: Crypto needs more no-fee, open-source payment tools 

A crypto researcher has whipped up an open-source payment processor within a week that lets a buyer tap a crypto wallet on a mobile device to pay for items without any processing fees typical of credit cards and terminals like Square.

Tim Robinson, head of crypto research at VC firm BlueYard, shared a video of the device in action this week making a payment with the MetaMask app on his phone. 

The terminal, which he’s dubbed FreePay, has a few different components, including an NFC reader and a screen for the seller to type in the amount they want to charge.

“We’re supposed to be replacing TradFi, not joining them,” Robinson said.

Robinson built a companion app for sellers using FreePay and an Android app for customers, but notes that FreePay only works with MetaMask and Coinbase Wallets (at least in its current form).

In recent months, crypto firms — from Coinbase to MetaMask, Avalanche to Solayer — have all unveiled their own various crypto payment cards using traditional payment processors like Visa, Mastercard and even American Express. 

But while these big-name TradFi firms have widespread reach, their fees aren’t inconsequential and can cut into businesses’ bottom lines or result in those higher costs being passed on to consumers.

Visa credit card fees per transaction can be anywhere from 1% to over 2%, while Amex fees are typically higher, and can range from 1.4% to over 2.5%.

Of course, blockchains come with their own set of fees, but ultimately that depends on the chain used. Ethereum L2 and Solana fees are much, much lower, especially when considering credit card fees plus the 2.6% and up additional fee added just for using a Square terminal. 

“I started with L2 support because that's what I know best, but because it's open source anyone can extend it,” Robinson told me in a DM of FreePay, adding: “Would love to see others add more chains and more wallets to support the standards needed to work with it.”

Crypto use in the US does come with some tax rules, though, which can deter some from using it as a payment method because it’s more complex than a stablecoin or fiat currency payment. 

But hey, if you want to spend your crypto directly from your wallet in a tap-to-pay method, FreePay looks like one potential way for merchants to let you do just that.

I personally think we’re still a little ways away from actually seeing crypto being used for daily, small payments at scale, but the crypto industry really should reconsider its full-tilt embrace of fee-heavy, decidedly centralized payment systems (and systems that refuse to bank businesses like legal dispensaries and sex workers).

As others have pointed out, crypto could also benefit from more open-source tech more broadly, including hardware wallets. Open-source tech is inherently more decentralized by design — and allows different motives besides maximizing profits alone to come into play.

A lot of compromises have been made by big crypto firms in pursuit of “mass adoption.” But maybe it’s time we look back at history and remind ourselves why bitcoin was even invented in the first place. 

• Crypto payments app MiniPay is working with Noah to enable more international payments options for users, like fiat-to-stablecoin payments from America to Africa or Central America.

  • Virtual USD and EUR accounts on MiniPay are coming soon.

  • Inbound funds are converted into US dollar stablecoins and can be converted to a local fiat currency or spent directly from the app.

  • This sounds like one way to get around paying remittance fees or other international money transfer hurdles and delays.

• Wake up, weebs: Crypto anime startup Oshi is going to use Solana to bring anime collectibles and early-access content onchain. Maybe something!

Not crypto-related, but Larian’s director of publishing Michael Douse (studio behind Baldur’s Gate) has shared his thoughts on the megalayoffs happening at Microsoft: