Web3 Payments Market

Web3 Payments Market Overview

The global Web3 Payments Market size was valued at USD 2.83 billion in 2023 and is predicted to reach USD 44.98 billion by 2030 with a CAGR of 47.3% from 2024-2030. Web3 payments market also known as tokenized payments market, involves using decentralized blockchain technology to enable secure, transparent, and efficient financial transactions among businesses. In this market, companies leverage cryptocurrencies and blockchain-based tokens to streamline transactions, eliminate traditional financial intermediaries, and reduce costs and settlement times. Smart contracts facilitate automatic transactions to ensure adherence to agreed terms and improve operational efficiency.

Web3 payment technologies offer improved security and privacy features, allowing businesses to better manage and control their financial data and information. Furthermore, these systems allow businesses to easily and affordably engage in cross-border transactions by offering global accessibility. Thus, web3 payments provide businesses with a more effective, clear, and secure way to manage financial transactions, promoting increased cooperation and creativity in the B2B sector.

Market Dynamics and Trends

The increasing demand for decentralized blockchain technologies is driving the expansion of the web3 payments market demand, as this technology enhances payment security, transparency, and cost efficiency by eliminating intermediaries and improving transaction effectiveness. In July 2024, Venn Network introduced the initial decentralized security network for web3, offering an always-on network of autonomous security providers to combat vulnerabilities in current solutions.

This network provides features for validating transactions, preventing issues, and alerting users to protect web3 protocols and rollups. Furthermore, the growing adoption of blockchain technology in the healthcare industry is significantly contributing to the secure management and exchange of medical data that further drives the market expansion.

Blockchain's decentralized network and unchangeable ledger offer a secure platform for storing and accessing medical records, promoting transparent transactions & enhancing patient trust. In September 2023, Binance Pay teamed up with SolveCare to enhance healthcare payments and promote the use of cryptocurrencies.

This integration enables patients to utilize more than 70 cryptocurrencies for making healthcare payments, increasing access to services and fueling market expansion. However, the regulatory uncertainties associated with financial reporting, anti-money laundering (AML), and know your customer (KYC) rules is restraining the growth of the market.

On the contrary, the integration of artificial intelligence (AI) in web3 payments creates a significant opportunity for the market. AI enhances transaction security in decentralized payment networks through advanced fraud detection and prevention algorithms, ensuring the integrity of these systems. Moreover, AI-powered analytics offer personalized financial insights and predictive capabilities to enhance user engagement within decentralized finance (DeFi) platforms.

For instance, in June 2024, AdEx, a decentralized advertising platform launched a refurbished platform for Web3 advertisers that incorporates enhanced AI-powered targeting and analytics to protect user privacy and enable decentralized advertising ecosystem. These advancements create future opportunities by increasing trust and adoption, enabling new use cases, fostering innovation, and improving user experience.

Market Segmentation and Scope of Study

The web3 payments market report is divided on the basis of type, application, end-user and region. On the basis of type, the market is segmented into public, private and hybrid. On the basis of application, the market is divided into cryptocurrency, conversational AI, data & transaction storage, payments, smart contracts, and other application. On the basis of end-user, the market is divided into BFSI, energy & utilities, government, healthcare and life sciences, and other end-users. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the web3 payments market share at present and is expected to continue its dominance throughout the forecast period. This is attributed to the rising popularity of digital currencies and cryptocurrencies such as Bitcoin and Ethereum among individuals and institutional investors within the region. This adoption fueled the demand for web3 payment solutions that leverage blockchain technology to enable secure, transparent, and efficient financial transactions.

In September 2023, PayPal launched on-ramps and off-ramps for web3 payments which allows customers to seamlessly convert between traditional fiat currencies and digital assets including cryptocurrencies. This new functionality enables PayPal users to buy, hold, and sell cryptocurrencies directly within the PayPal platform, as well as use those digital assets to make purchases from merchants that accept PayPal.

Also, the growing adoption of web3 payment technologies is driving the market growth for digital payment services by offering convenient and secure transaction solutions. For example, in October 2022, Fireblocks launched a new platform that simplifies the process for payment service providers (PSPs) to enable their customers to accept digital asset payments.

This development is aligned with the objectives of web3 payments, which aim to deliver faster and more secure transaction capabilities. On the other hand, Asia-Pacific is considered fastest growing region in the web3 payments industry owing to the increasing technological innovations with blockchain technology among the growing consumers in the region.

For instance, in June 2023, Fujitsu launched a blockchain collaboration technology called "ConnectionChain" to build web3 services which enables flexible, secure connectivity across multiple economies. The purpose of this technology is to make the world more sustainable by building trust in society through innovation. Moreover, growing collaborations of prominent payment companies with various startups and organization to maintain a sophisticated banking solutions is further fuelling the web3 payment market growth.

For instance, in May 2023, Visa collaborated with seven startups in the Asia-Pacific region as part of its Visa Accelerator Program to develop and test innovative solutions, with the goal of validating them within financial institutions, merchants, and digital partners. These startups focus on technological areas such as web3, global money movement, embedded finance, merchant and small business support, and open banking solutions.

Competitive Landscape  

Various key players in the web3 payments industry includes Web3 Foundation, Helium Foundation, Ocean Protocol Foundation Ltd, Filecoin, Zel Technologies, livepeer, Inc, Kadena LLC, Polygon Labs UI, Alchemy Insights, Inc, Binance and others. These market players are opting various strategies such as product launch and partnership to maintain their dominance in the global web3 payments market.

For instance, in May 2024, Alchemy Pay launched a web3 Digital Bank to provide global web3 businesses with a compliant platform for managing multi-fiat accounts, simplifying cash flows, and seamlessly converting between fiat and cryptocurrency. The new digital banking solution aims to bridge the gap between fiat and crypto economies, enabling businesses to navigate the transition from web2 to web3.

Also, in March 2024, Polygon Labs partnered with ChainGPT to leverage expertise in AI and scalable blockchain infrastructure to drive innovation and accelerate the adoption of web3 technologies. The partnership aims to support the growth of a vibrant ecosystem of developers, entrepreneurs, and businesses working on web3 projects built on Polygon's infrastructure.

Moreover, in November 2023, Web3 Foundation launched a USD 45 million decentralized future program to support a diverse range of ecosystem projects. The program aims to foster innovation and development in the decentralized web space with the use of web3 payment methods.

Key Benefits

• The report provides quantitative analysis and estimations of the web3 payments market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future web3 payments market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Web3 Payments Market Key Segments

By Type

• Public

• Private

• Hybrid 

By Application

• Cryptocurrency

• Conversational AI

• Data & Transaction Storage

• Payments

• Smart Contracts

• Other Application

By End-User

• BFSI

• Energy & Utilities

• Government

• Healthcare and Life Sciences

• Other End-User

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 2.83 Billion
Revenue Forecast in 2030	USD 44.98 Billion
Growth Rate	CAGR of 47.3% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing adoption of decentralized blockchain technologies drives the market growth. Rising adoption of blockchain technology in the healthcare industry further propels the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Web3 Foundation

• Helium Foundation

• Ocean Protocol Foundation Ltd

• Filecoin

• Zel Technologies

• Livepeer, Inc.

• Kadena LLC

• Polygon Labs UI

• Alchemy Insights, Inc.

• Binance