The world of payments is rapidly evolving, yet cryptocurrency remains largely trapped in investment portfolios rather than being used for everyday transactions. Derrick Hess of Zero Point, a veteran ISO with decades in the payments industry, believes this is about to change—and payment professionals will be the catalysts.
Cryptocurrency offers two game-changing benefits that could revolutionize merchant services: substantially lower transaction costs (around 1% compared to the 2-3%+ charged by traditional payment networks) and complete elimination of chargebacks. For high-risk merchants especially, these advantages could be transformative. What's missing isn't consumer adoption—millions already hold crypto in wallets like Coinbase—but rather the payment infrastructure that connects these wallets to merchant checkouts.
Hess envisions a future where customers simply scan a QR code at checkout, select their preferred cryptocurrency, and complete transactions that instantly convert to stablecoins like USDC, eliminating volatility concerns for merchants. This technology exists, but implementing it requires payment professionals who understand both the crypto ecosystem and real-world merchant needs.
The urgency for ISOs to embrace this evolution is heightened by another industry trend: integrated software vendors (ISVs) increasingly dominating the payments landscape. As Hess notes, "If you don't have a vertical software, you're running out of time." The traditional ISO who could once sell to nearly every business on Main Street now finds their addressable market shrinking dramatically as vertical-specific software bundles payments processing.
Despite the crypto market cap reaching approximately $2.7 trillion and projections of $10 trillion within 4-5 years, traditional financial institutions remain hesitant to fully engage. This creates an opportunity for payment professionals to position themselves as bridges between Web2 and Web3, bringing cryptocurrency payment solutions to merchants eager for lower fees and chargeback protection.
Whether you're crypto-curious or crypto-skeptical, this episode offers valuable insights into how blockchain technology is poised to transform the payments industry. Connect with Derrick Hess on LinkedIn or visit zeropointus.com to continue the conversation about the future of payments.
**Matters discussed are all opinions and do not constitute legal advice. All events or likeness to real people and events is a coincidence.**
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A payments podcast of Global Legal Law Firm