The Onchain Research Team has reviewed hundreds of crypto consumer applications over a few months, starting in Q4 2024. We found many new projects to be very different from the stereotypes of hype-based “ponzinomics.” The trend is to provide tangible benefits. You can see the key categories we examined in the table below.

For an even higher-level perspective, the Real-World Crypto Apps Sector Map below showcases many of the most interesting projects we encountered during our analysis.

A space that was once dominated by speculative projects has matured into a diverse ecosystem spanning crypto payments, decentralized social media (DeSoc), tokenized loyalty programs, DePIN networks, and beyond. One of our recent reports explores how DeSoc networks are reshaping online identity and user-owned communities.

To explore the broader crypto consumer apps ecosystem, which now includes over 1,580 projects beyond real-world applications, visit ConsumerApps.com.

Crypto real-world payment services: the most adopted Web3 consumer applications

Our research found that one real-world Web3 consumer app category stood out — crypto payments are the most widely used and rapidly growing sector. Survey results based on responses from 1,000+ users across various Web3 demographics strongly reinforce this trend.

Why are crypto real-world payment solutions so popular?

As blockchain technology matures, consumer applications that enable real-world financial transactions show the highest immediate economic impact. Crypto payments have shifted from early-stage experiments to fully-fledged financial products that offer:

✅ Fast, low-cost transactions: Eliminating intermediaries reduces fees and settlement times.
✅ Global accessibility: Crypto payments provide financial services to the unbanked and underbanked.
✅ Self-custody & decentralization: Unlike traditional banking, Web3 payments give users full control over their assets.

2.1 The evolution of crypto cards

Probably the most tangible way crypto integrates into real-world spending is through crypto debit and credit cards. The table below divides them into five generations. The cards vary in custody models, smart contract programmability, and DeFi integration.

The distinction between Gen 2 and Gen 3 cards is not absolute; both exist on a spectrum of decentralization, programmability, and financial autonomy. Gen 2 solutions typically provide non-custodial elements but still depend on manual top-ups, whereas Gen 4 cards integrate fully programmable finance for yield-earning balances, automated payments, and direct onchain spending. 

For context, Gen 0 cards function mainly as custodial off-ramps, Gen 1 cards rely on exchange-held crypto for automatic conversions, and Gen 4 solutions introduce onchain credit with self-repaying mechanisms via staked assets. This classification hinges on onchain capabilities, non-custodial properties, and DeFi integration rather than UX or interface quality. Indeed, some Gen 2 cards may offer smoother onboarding than Gen 3 products, which still face significant UX hurdles. 

The critical leap in Gen 3 is real debit and credit functionality alongside deeper DeFi composability, while Gen 4 adds borrowing and yield to the mix. Ultimately, each higher generation grants greater financial autonomy but also carries increased complexity, security considerations, and regulatory challenges.

Gen 0: Holyheld – a streamlined off-ramp, not a true crypto card

Holyheld is one of the most widely used crypto top-up solutions today as a result of its frictionless UX. According to Dune it counts over $2 mil in weekly deposits. However, from a technical perspective, it functions more like a crypto off-ramp than a true crypto-native card.

How Holyheld works

Holyheld supports non-custodial wallet integration, while the card itself is custodial and spends fiat EUR.

Each time a user tops up, funds are sent to a Holyheld-controlled IBAN account, which executes payments offchain. Transactions are not recorded onchain.

This design is similar to PayPal’s crypto conversion flow, where users send crypto that gets off-ramped to fiat and spent through a traditional financial network.

Strengths & weaknesses

✅ Superior UX: Supports gasless top-ups for over 1,000 cryptocurrencies across multiple blockchains. Transactions settle in under a minute.
✅ Passkey support: Users can spend without using a wallet, streamlining onboarding.
🚫 Not truly crypto native: Since payments occur offchain and require manual funding, it lacks DeFi composability.
🚫 No competitive yield: Unlike Coinbase and PayPal, which offer 4-5% yield on idle balances, Holyheld lacks an interest-earning component.
🚫 Potentially outdated model: As non-custodial Gen 3 cards gain traction, Holyheld may struggle unless it integrates deeper DeFi functionalities.

Future developments

Holyheld works on the Blockchain Reconciliation and Remittance Record (BRRR protocol), a new initiative meant to bring more transparency and automation to its payment infrastructure.

Gen 1 and 2: custodial and non-custodial prepaid crypto cards

Gen 1 and Gen 2 go a step further by offering debit cards that link directly to crypto balances. They differ primarily in custody models and top-up handling:

Gen 1: custodial crypto debit cards

Examples: Coinbase Card, Crypto.com, Revolut, Nexo, Wirex

Core concept: Balances are held by a centralized exchange or custodian, with automatic crypto-to-fiat conversion at checkout.

How it works:

• Users deposit crypto into their exchange account.
• At checkout, the provider instantly converts the required amount into fiat.

Strengths:

✅ Seamless for users who already keep crypto on an exchange
✅ Straightforward compliance and KYC

Weaknesses:

🚫 Limited DeFi integration
🚫 Custodian holds user funds

Gen 2: non-custodial, prepaid crypto cards

Examples: Osmosis Pay, Sanctum Pay, Kast, RedotPay

Core concept: Users hold their own keys but must manually top up a fiat balance before spending.

How it works:

• Funds remain in the user’s onchain wallet.
• The user must convert some crypto to fiat (or stablecoins) and load a prepaid balance on the card.

Strengths:

✅ Self-custody: Users control private keys
✅ It avoids relying on an exchange’s risk profile

Weaknesses:

🚫 Manual top-ups for each spending session
🚫 Only partial DeFi integration, typically limited to basic swaps

Gen 3: Gnosis Pay – a smart contract-integrated debit card

Gnosis Pay, introduced at EthCC 2023, represents one of the earliest non-custodial debit card solutions integrated directly with a Gnosis Safe smart contract wallet. This marks a significant milestone in the evolution of Web3 payments. Currently, Gnosis Pay exclusively supports stablecoins, specifically EURe (Euro-denominated stablecoin) and GBPe (British Pound-denominated stablecoin).

👉 Interested in experiencing Gnosis Pay yourself? Get your card today (only available in the EU).

Since its launch, the weekly transaction volumes and the number of Gnosis Pay users have constantly grown.

• In late 2024, the weekly volume of Gnosis Pay transactions exceeded € 1 mil (~$1.1 mil), demonstrating increasing user confidence and adoption.
• The vast majority of spending occurs in EURe, with GBPe adoption growing gradually.
• Volume has scaled consistently since December 2023, with periods of rapid acceleration around mid-2024, aligning with increased stablecoin adoption and expanding merchant acceptance.

How Gnosis Pay works

The direct connection to a Gnosis Safe smart contract wallet ensures true self-custody and onchain financial activity tracking.

This design makes Gnosis Pay a powerful alternative to custodial solutions because it provides users greater flexibility and ensures compliance with traditional payment infrastructure.

Strengths & weaknesses

✅ True non-custodial setup: Users remain fully in control of their funds until the moment of spending.
✅ Direct IBAN transfers: Users can pay rent or bills directly via SEPA transfers.
🚫 No real-time DeFi composability: The delay module prevents swapping tokens in real time for spending.
🚫 Requires preloaded funds: Funds must be topped up in advance, and users cannot spend assets directly from DeFi protocols.
🚫 Limited currency support: Currently, only two less widely adopted stablecoins (EURe and GBPe) are supported, though integration of DAI is also being considered.

Zeal, a smart wallet on top of Gnosis, is developing features to auto-top up a Gnosis Pay Safe by:

• Earning yield via sDAI.
• Automatically converting assets when the balance falls below a threshold.
• Enabling direct IBAN transfers for recurring payments (e.g., rent, subscriptions).

Gnosis Pay’s long-term potential lies in deeper DeFi integrations. It could be the foundation for future non-custodial banking alternatives.

Ready to experience next-generation financial infrastructure? Get your card today. 

Gen 3: Fuse Pay – a Solana-based, smart wallet-integrated card

Fuse Pay introduces a non-custodial, smart contract-based payment card built on Squads Protocol (Solana). 

How Fuse Pay works:

• Direct deposit support lets users receive fiat payments into a crypto-native bank account.
• Integrations with DeFi platforms (e.g., Drift for yield, Jupiter for swaps) enhance spending flexibility.
• Unlike Gnosis Pay, Fuse Pay does not introduce a “delay module,” allowing more immediate access to DeFi tools.

Strengths & weaknesses

✅ No foreign custody: Funds remain under user control in a smart contract wallet.
✅ Real DeFi integration: Direct spending from yield-bearing accounts.
🚫 Still rolling out: Fuse Pay is not yet fully live — its long-term usability will depend on adoption and liquidity.

Gen 4 (emerging): EtherFi Cash & Avalanche Card – DeFi-native credit cards

The next evolution in crypto payments is already on the horizon — fully onchain credit systems. EtherFi Cash and Avalanche Card are pioneering this model, allowing users to borrow against their crypto holdings while simultaneously earning staking rewards to pay down debt.

How it works:

• It supports liquid staking tokens (LSTs) like sAVAX and eETH.
• Users can spend against their collateral while automatically paying off debt with staking rewards.
• EtherFi integrates with Aave to determine lending rates based on utilization models.

Why gen 4 matters

✅ No need to sell crypto: Users preserve exposure because they spend against yield-generating assets.
✅ Self-repaying credit model: Staking rewards automatically offset borrowing costs.
🚫 Liquidity concerns: These cards require deep DeFi liquidity to function efficiently.
🚫 Security & risk factors: Smart contract risks could impact user funds.

2.2 The rise of Web3 apps with real-world utility

Spending crypto as seamlessly as fiat is turning into reality through the rise of crypto payment platforms. They are not mere digital payment processors; they represent an entirely new class of financial services, fundamentally different from both traditional banks and Web2 Fintechs like PayPal or Revolut.

This shift is significant because Web3 Fintechs remove the reliance on centralized intermediaries. This ensures that users maintain full control over their assets, payments, and financial interactions.

Web3 Fintechs vs. traditional Fintechs: a promising shift?

The core differences between Web3 Fintechs and legacy institutions are apparent in custody, transparency, programmability, and accessibility. The following table shows them side-by-side.

How Web3 Fintechs generate revenue

Traditional Fintechs rely heavily on transaction fees, interchange rates, and interest from loans. Web3 Fintechs tap into a richer, more dynamic mix of revenue sources. By integrating decentralized finance (DeFi) mechanisms, token incentives, and programmable smart contracts, these platforms create a multifaceted income stream that’s both resilient and aligned with the ethos of user empowerment. Here’s how they’re doing it.

Why it matters

1. Diversification
   • Multiple pillars: Web3 Fintechs are less reliant on any single revenue source as a consequence of combining transaction fees, currency spreads, DeFi yields, and merchant partnerships. 
   • Market resilience: Crypto markets can be volatile; multiple streams mitigate risks of sudden token price or interest rate drops.
2. User autonomy & incentives
   • Non-custodial model: Platforms often let users retain private keys, aligning with Web3’s ethos of personal asset control.
   • Revenue-sharing tokens: Some projects reward participants by redistributing a share of earnings to the community. This helps align platform success with user engagement.
3. Cross-border fee advantage
   • Lower costs: USDT/USDC prepaid card solutions and other Web3 rails can dramatically undercut traditional cross-border services (e.g., PayPal, Wise), often charging under 2% vs. 4–5%.
   • Global reach: Web3 apps can tap into emerging markets where conventional banking or established Fintech providers are unavailable or too costly.

Competitive landscape: the battle between Web3 Fintechs & banks

The rise of Web3 Fintechs challenges traditional banking infrastructure, particularly in regions where crypto adoption is growing faster than access to traditional financial services.

Because Web3 Fintechs operate non-custodially, they’re essentially interface providers who merely facilitate the transaction. As such they are a gateway to the broader Web3 ecosystem because you can tap into DeFi or NFT markets from the same wallet. The blend of these features allows Web3 solutions more flexibility, lower costs, and user empowerment than their conventional counterparts.

Blurring the lines between Web2 and Web3 Fintechs

Parallel to the increase in Web3-native solutions that appear on the market, the number of Web2 Fintech players that gradually integrate crypto services is also growing. Market leaders like Revolut, PayPal, and Cash App are adding stablecoin transfers or direct token purchases to their offerings. This shift can be seen across several Web3 sectors, including DeSoc, where large, established companies have begun adopting blockchain technology.

1. Pros for users: Easier on-ramps, brand familiarity, and more seamless interactions between fiat and crypto.
2. Risk for Web3 startups: Large incumbents boast vast user bases and regulatory leverage, potentially overshadowing specialized Web3 platforms in visibility and market share.
3. Core distinction: While mainstream Fintechs remain primarily custodial and heavily regulated, Web3-native solutions focus on self-custody, composability, and open financial infrastructure. We are looking at a fundamentally different approach to asset ownership and programmability.

So, are you more optimistic about the future of Web3 consumer apps? The developments in the financial services area are a good reason for an optimistic outlook.

However, significant hurdles remain. Regulatory uncertainty complicates global expansion, while merchant adoption and user education are still catching up to Web2 norms. At the same time, incumbents in traditional banking and established Fintechs are racing to integrate crypto rails, raising the stakes for Web3-native projects seeking to stand out.

In the next chapter, you will discover which additional areas are promising and where Web3 is still lagging behind Web2. Get ready for a tour through some European cities using some very useful dApps and discover how they improve your daily life (if they do) and how much you can expect to earn by using them.