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NOWPayments CEO Calls for End to Crypto Payout Fees With New Email-Based System
Summary
Crypto payment gateway NOWPayments has introduced a zero-fee payout infrastructure that uses email addresses instead of crypto wallets, a move its CEO says will eliminate network fees and reduce operational costs for businesses.
Crypto payment processor NOWPayments has launched a new infrastructure aimed at eliminating crypto payout fees for businesses, challenging what its CEO calls an outdated and unnecessarily costly industry standard. The new system replaces traditional wallet-based transfers with instant, email-based payouts, a move the company says will remove network transaction fees entirely.
A New Payout Model
For years, businesses conducting mass payouts in cryptocurrency have treated blockchain network fees as an unavoidable cost of operation. NOWPayments CEO Kate Lifshits argued it is time to challenge that assumption. "Why does sending crypto still feel harder than sending an email?" she stated in the company's announcement.
The firm's new solution bypasses the need for companies to collect and validate individual crypto wallet addresses. Instead, businesses can use an email address as the payout destination, automating the process and removing delays associated with blockchain confirmations.
Impact on Business Operations
According to NOWPayments, the reliance on traditional crypto wallets creates significant hidden operational costs for companies that process payouts at scale, such as affiliate platforms, marketplaces, and payroll providers. These costs include managing failed transactions, paying network fees, and handling recipient support.
Ad“The market has spent years competing over who can charge less per payout. We are asking a more important question: why should businesses pay per payout at all?” Lifshits said. The company claims its email-based system offers several key benefits:
- Zero network and service fees
- Under-one-second delivery times
- Reduced instances of failed payouts
- Lower support and administrative costs
Economic Implications
The primary impact of the new infrastructure is economic, particularly for businesses processing thousands of transactions. NOWPayments estimates that while some firms may save thousands of dollars annually, organizations with payout volumes in the hundreds of thousands or millions could reduce costs by hundreds of thousands of dollars each year.
To help businesses quantify the potential impact, the company has released a savings calculator that compares current payout costs to its zero-fee model. Lifshits described the shift as moving toward a "person-to-person" system, stating, "Anything more complicated is legacy infrastructure."