NOWPayments Launches Zero-Fee Crypto Payout System Using Email

Crypto payment gateway NOWPayments has launched a new infrastructure designed to eliminate blockchain network fees for businesses conducting mass payouts, according to a company announcement. The system replaces traditional wallet-based transfers with payouts directed to a recipient's email address, aiming to reduce costs and operational complexity.

A New Payout Model

The new system moves away from the standard practice of collecting and validating individual cryptocurrency wallet addresses. Instead, businesses can use an email address as the payout destination, automating the process for recipients to access their funds. According to NOWPayments, this method bypasses common issues like transaction confirmation delays and failed payments.

Kate Lifshits, CEO of NOWPayments, stated that the industry has focused on incremental fee reductions rather than questioning the necessity of the fees themselves. “The market has spent years competing over who can charge less per payout," Lifshits said. "We are asking a more important question: why should businesses pay per payout at all?”

Operational and Cost Implications

NOWPayments highlights that the shift to email-based payouts can significantly lower operational overhead for companies that process a high volume of transactions, such as affiliate platforms, gaming companies, and payroll providers. The company claims the primary benefits of its new infrastructure include:

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• Zero network fees and zero service fees
• Under-one-second delivery times
• Reduced instances of failed payouts and lower associated support costs

According to an analysis by the company, potential savings could range from thousands to hundreds of thousands of dollars annually, depending on payout volume and the cryptocurrencies used. To help businesses quantify this, NOWPayments has released a savings calculator on its website.

Vision for Person-to-Person Transfers

The company positions this development as a move toward a more simplified, "person-to-person" crypto economy. “The future of crypto payouts is not wallet-to-wallet. It is person-to-person: identified by email, delivered instantly and free to move inside the ecosystem,” Lifshits commented.

NOWPayments is a global crypto payment processor that supports over 350 cryptocurrencies and provides a suite of APIs and payment tools for businesses to integrate digital asset transactions.