Cryptocurrency has become more common in global finance, but using it for everyday purchases is still not easy. Crypto cards are one of the solutions created to solve this problem. They let people spend crypto directly without converting it to regular money first. But making this idea work still comes with challenges, like regulations, getting stores to accept them, and technical issues.
To explore these issues, we sat down with Michael Gao, Co-Founder and CEO of RedotPay, a crypto payments platform, to discuss the current state and future of crypto cards and what needs to change for cryptocurrency to become a truly mainstream payment method.
Cryptonews.com: What are the main regulatory challenges facing crypto payment services? How can crypto payment platforms ensure compliance with the requirements of different jurisdictions?
Michael Gao: The regulatory landscape for crypto payments resembles a global patchwork quilt—each jurisdiction with its own pattern of rules, creating a complex compliance environment. What many see as a burden, we view as a strategic differentiator.
This fragmentation has forced the industry into a multilayered compliance approach. Basic KYC/AML is merely the fundamentals; sophisticated players now leverage blockchain analytics and regulatory technology to navigate this terrain. At RedotPay, we’ve transformed regulatory compliance from cost center to business enabler through strategic licensing across key Asian and European jurisdictions.
Our approach balances seemingly contradictory imperatives: stringent compliance and streamlined user experience. The platforms that will dominate this space are those building infrastructure designed for regulatory evolution, not those seeking regulatory arbitrage.
CN: How difficult is it to achieve acceptance among traditional retailers?
MG: Despite Bitcoin’s existence since 2009, merchant acceptance remained slow, revealing a fundamental truth: technology that requires merchants to change behavior faces enormous friction.
The resistance stems from three critical barriers: price volatility, technical complexity, and settlement uncertainty. Early adopters who attempted direct cryptocurrency acceptance essentially became crypto speculators alongside their core business.
At RedotPay, we’ve attacked this problem differently. Rather than asking merchants to adapt to cryptocurrency, we’ve adapted cryptocurrency to merchants. By emphasizing stablecoins and enabling settlement in familiar fiat currencies, we’ve eliminated volatility concerns while integrating with existing payment rails.
Merchant adoption requires cryptocurrency spending to be as seamless as possible. Successful payment innovations become ubiquitous not by demanding change, but by fitting into existing patterns while adding value. The future lies in ensuring cryptocurrency’s convenience in everyday use, where retailers see only reliable, low-cost payment settlement—no longer thinking about crypto itself.
CN: What kind of audience do crypto payment services primarily attract? Are your main users crypto enthusiasts, those without access to traditional banking services, or someone else?
MG: The genius of cryptocurrency lies not in improvements for the banked but in revolutionary access for the excluded. While early adoption came from crypto enthusiasts, the most compelling growth story is the global unbanked population. Rarely discussed, the 1.4 billion unbanked adults globally aren’t just a social problem—they’re an untapped market of immense proportions. These individuals don’t lack banking because they lack money per se; they lack banking because traditional systems weren’t designed to serve them profitably.
Source: 2023 FDIC National Survey of Unbanked and Underbanked Households
At RedotPay, our user data tells an illuminating story. In regions with limited banking infrastructure but high mobile penetration, we’re seeing enthusiastic adoption by non-crypto-native users. These customers aren’t speculating on asset prices; they’re solving practical problems—sending remittances, preserving value against inflation, and accessing global commerce.
This bifurcation in the user base creates fascinating product tensions. Enthusiasts demand different features than the financially excluded, who prioritize simplicity, reliability, and interoperability with local economies.
The implications for growth strategy are profound. While developed markets offer a concentration of wealth, emerging markets offer volume and organic growth driven by genuine need rather than speculation. At RedotPay, we’re deliberately building for both segments, recognizing that true financial inclusion isn’t charity—it’s sound business.
CN: How could the development of central bank digital currencies (CBDCs) impact crypto payment platforms? Is it a threat or an opportunity?
MG: Central bank digital currencies represent validation for the crypto payment sector, showcasing crypto’s fundamental advantages in security, programmability, and efficiency.
For some smaller stablecoin issuers, CBDCs may pose existential questions—why choose a private stablecoin when a government-backed digital currency exists? However, for payment infrastructure providers facilitating payment interoperability like RedotPay, CBDCs represent an extraordinary opportunity to bridge traditional and digital financial systems.
In emerging markets, CBDCs could provide monetary stability while blockchain infrastructure enables last-mile distribution to previously unreachable populations. This represents a leapfrog opportunity similar to mobile phones bypassing landline infrastructure.
CN: How do you see the future of crypto payments? What needs to change for cryptocurrency to become a truly mainstream payment method?
MG: The future of cryptocurrency payments isn’t about replacing traditional finance—it’s about expanding financial inclusion to the billions of traditional systems that are ignored or found unprofitable to serve. This insight fundamentally reframes the opportunity from disruption to expansion.
Our user demographics tell a compelling story about this future. At RedotPay, we’re seeing the strongest adoption among younger users who approach crypto payments not as an alternative but as their primary financial system. They’re not “converting” to cryptocurrency; they’re starting with it—similar to how many regions skipped landlines entirely for mobile phones.
This generational approach is critical for understanding adoption curves. The financial behaviors established before age 25 often persist for decades. When today’s digital natives, who find blockchain-based finance intuitive, become tomorrow’s economic majority, the shift will accelerate dramatically. The future arrives gradually, then suddenly.
Finally, the industry must focus on real-world utility over speculation. At RedotPay, we’re building for a world where digital assets seamlessly integrate with daily financial life. The revolution isn’t replacing banks—it’s bringing banking to everyone.
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