NOWPayments Launches Zero-Fee Payout System Using Email Addresses

Crypto payment gateway NOWPayments has launched a new payout system designed to eliminate transaction fees for businesses, challenging the long-standing industry practice of charging for crypto transfers. The company's CEO, Kate Lifshits, stated that the infrastructure aims to remove unnecessary costs and operational complexities associated with traditional blockchain-based payouts.

A New Payout Model

The new system replaces conventional wallet-to-wallet transfers with a model that uses email addresses as the destination for funds. According to NOWPayments, this approach allows for instant, under-one-second delivery of payments without incurring network or service fees.

"Why does sending crypto still feel harder than sending an email?" asked Kate Lifshits, CEO of NOWPayments, in a statement. The company asserts this shift simplifies the process for both businesses and recipients, reducing issues like wallet address validation and transaction confirmation delays.

Addressing Operational Costs

NOWPayments argues that businesses conducting mass payouts face significant hidden operational costs. These include managing wallet addresses, handling failed transactions, and providing recipient support, which become major expenses at scale. The company's new model is positioned as a solution to these challenges.

Key benefits highlighted by the company include:

• Zero network fees
• Zero service fees
• Automated onboarding for recipients
• Reduced failed payouts and lower support costs

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"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?"

Market Impact and Target Audience

The economic impact is aimed at high-volume businesses, where savings could range from thousands to hundreds of thousands of dollars annually, according to the company. To help businesses quantify potential savings, NOWPayments has released a Zero-Fee Crypto Payout Savings Calculator.

This solution is designed for industries that process frequent, large-scale payouts, such as:

• Affiliate networks and marketplaces
• Gaming and creator platforms
• Payroll and cashback providers
• Fintech companies

Lifshits described the shift as moving from legacy "wallet-to-wallet" infrastructure to a more efficient "person-to-person" system. NOWPayments, a global payment gateway, supports over 350 cryptocurrencies and more than 30 stablecoins.