NOWPayments Launches Zero-Fee Crypto Payout System Using Email Addresses

Crypto payment gateway NOWPayments has introduced a zero-fee payout system, challenging the industry standard of charging network fees by enabling businesses to send mass crypto payments using only an email address. The new infrastructure is designed to eliminate blockchain transaction costs and simplify operational workflows for companies that process large volumes of payments.

Challenging Payout Norms

According to a company announcement, the new system replaces traditional wallet-based transfers with instant, email-based payouts. This approach removes the need for businesses to collect and validate individual cryptocurrency wallet addresses, a process often fraught with complexity and potential for error.

"Why does sending crypto still feel harder than sending an email?" asked Kate Lifshits, CEO of NOWPayments, in a statement. The company's solution aims to address this by using an email as the destination, automating the process and bypassing common issues like network confirmation delays.

The Economic Impact on Businesses

The primary benefit for businesses is the significant reduction in operational costs. The company claims its solution eliminates both network fees and service fees for payouts. For organizations processing thousands or millions of transactions, this could translate into substantial annual savings.

NOWPayments highlighted several advantages for companies processing payments at scale:

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• Zero network and service fees
• Near-instantaneous delivery of funds
• Simplified, automated onboarding for recipients
• Reduced instances of failed payouts and lower associated support costs

To help companies quantify the financial benefits, NOWPayments has released a "Zero-Fee Crypto Payout Savings Calculator" to estimate potential savings based on transaction volume and the cryptocurrencies used.

A Shift in Infrastructure for Mass Payments

The service is aimed at businesses that conduct a high volume of payouts, such as affiliate networks, gaming platforms, online marketplaces, and payroll providers. These sectors often face what the company calls "hidden operational costs" associated with managing wallet addresses, recovering failed transactions, and paying variable blockchain fees.

"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 stated. This approach reframes payouts as a tool for growth and engagement rather than a recurring business expense.