Web3 is the future of payments | Hydrogen Blog
Web3 is the Future of Payments

Web3 is the Future of Payments

Web3 payments are seeking to completely revolutionize the internet and how it’s run. How we send and receive money is no exception to Web3’s ambitions.

You probably know yourself. Buying things on the internet or sending money to friends can be a long and difficult process, often with too many hoops to jump through.

But can Web3 really revolutionize the payment space of the internet? And do any Web3 payment services already exist?

What is Web3?

But, first, what really is Web3? 

As a quick summary, Web3 is a set of propositions for how to reform the internet, in an attempt to make it more democratic and accessible. It seeks to combat the power held by just a few large technology companies and their infrastructure, by using blockchain as an effective way to run the internet.

All information and data would be stored in a decentralized location, and all processes verified by the decentralized network rather than private companies. Currency and information would be sent without needing to go through a third-party.

If you want to read about Web3 in more detail, check out this previous article from Hydrogen.

Why is Web3 the future of payments?

Web3 payments allow money to be exchanged without the need for centralized intermediary companies, in line with the ideas of privacy and democratization. Money can be sent easily, quickly, and anonymously. The exchange is peer-to-peer, meaning that no middle man is required to complete the payment, and removing the need for the infrastructure of big technology companies.

Web3 will cut the bureaucracy associated with finance and money. People will be able to send money without having to register for financial services or give permission for companies to access their personal and financial data. The fact that Web3 data is encrypted also means that purchasers on the internet can be sure that their personal information is secure and their transaction details cannot be accessed.

Web3 payments could also expand the number of currencies that people can exchange and hold, widening financial opportunities beyond simply fiat currencies. The possibility to pay in crypto or other currencies with ease will make investing and access to the financial system more widely available and universal.

The lack of bureaucracy also makes Web3 payments much quicker. While traditional Web2 payments might take days to settle, payments on the blockchain are settled within minutes, or even seconds. International transfers are also much easier under a Web3 payment system, removing the need for complex currency conversions and expensive remittance fees. 

In this sense, Web3 payments are a form of Decentralized Finance (DeFi). They use secure ledgers to process the moving of money, and seek to combat the control of large financial institutions such as banks, which often require fees and the submitting of data in exchange for their services.

Examples of Web3 payments


Ethereum is a decentralized, open-source blockchain. Through the platform, users can engage in frictionless trading of cryptocurrencies, as well as borrowing and lending, without third-party authorization.

The Ethereum platform is not solely restricted to the Ether token, acting as a platform for many other Web3 decentralized applications. All exchanges and payments are peer-to-peer, permissionless, and non-hierarchical.

The platform also allows for the trade and purchase of NFTs. It is an example of one of the platforms most at the forefront of Web3 payment innovation. 


In some ways, Web3 innovation will also have to be led by current Web2 technology companies, as these companies already have the capital and infrastructure to adapt and invent.

Paypal has been experimenting with Web3 processes for the past few years. The company is currently researching and seeking to implement blockchain processes into its business model, as well as its own crypto token.

In June 2022, Paypal announced that users would be able to transfer cryptocurrency from their Paypal accounts to other wallets and exchanges. This already opens up the possibility for users to send crypto to each other using Paypal’s services, with further developments on the way in the future.

The hope is that Paypal will further expand the possibility for frictionless exchanges along the blockchain, in a similar way to how it originally revolutionized Web2 payments.


OpenSea is the largest web3 marketplace, allowing users to buy and sell NFTs and other crypto commodities. 

Users can connect their personal wallet to the OpenSea platform, giving them the possibility to directly buy or sell on the platform. Transactions are completed through direct peer-to-peer payments between buyer and seller, rather than a centralized system.

In line with the ideas of Web3, OpenSea transactions are completed on the blockchain, and international transactions function exactly as local transactions.

How Hydrogen’s Platform Helps

Crypto Debit Cards

For many businesses outside the fintech sector, Web3 payments are an exciting and effective way to keep up with technological developments and the desires of modern customers. But, implementing Web3 processes requires significant experience and time to implement. 

With the help of fintechs such as Hydrogen, any business can make the most of Web3 innovations. We can open your business to wider markets and processes with our no-code Web3 payments use cases that require little expertise from you. We provide all of the tools and orchestration that you need, so you can easily integrate Web3 fintech products, such as crypto debit cards, with little effort or concern.

Contact us today to learn more.


Embedded Finance Made Simple
The Crypto Spend Card is issued by Pathward, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. The Crypto Spend Card may be used everywhere Visa debit cards are accepted.

The Crypto Spend Card is not currently available in Hawaii.

The Select Visa® Card is issued by Pathward, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. The Select Visa® Card may be used everywhere Visa debit cards are accepted.

The Select Prepaid Mastercard® is issued by Pathward, N.A., Member FDIC, pursuant to license by Mastercard International Incorporated. Mastercard® is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. The Select Prepaid Mastercard® may be used everywhere Debit Mastercard® is accepted.

Cash back and other merchant rewards are not offered or endorsed by Pathward, N.A.

Cryptocurrency custody services and the purchase, sale, or exchange of fiat funds for cryptocurrency are not offered or endorsed by Pathward, N.A. Cryptocurrency transaction and custody services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC. You must agree to the Zero Hash LLC and Zero Hash Liquidity LLC terms and conditions to enable your Zero Hash account. Cryptocurrency balances are not covered by FDIC or SIPC insurance.

Digital assets are subject to a number of risks, including price volatility. Transacting in digital assets could result in significant losses and may not be suitable for some consumers. Digital asset markets and exchanges are not regulated with the same controls or customer protections available with other forms of financial products and are subject to an evolving regulatory environment. Digital assets do not typically have legal tender status and are not covered by deposit protection insurance. The past performance of a digital asset is not a guide to future performance, nor is it a reliable indicator of future results or performance.
By using this website, you agree to our use of cookies, and you acknowledge that you have read and understand our Privacy Policy and Terms of Use   Continue
Close Menu