Win the next wave of crypto on-ramp growth
Revolut’s recent move to offer fee-free 1:1 fiat-to-stablecoin conversion for tens of millions of customers has set a new benchmark for how easy it will be for consumers to move into digital assets.
For PSPs serving crypto exchanges, wallets and trading apps, that benchmark puts today’s card-heavy deposit flows under real pressure.
At exactly the moment users are ready to deposit fiat, using cards for on-ramps is more expensive, slower to settle, and prone to chargebacks and declines.
As stablecoins start to look and feel like “digital cash”, crypto merchants are asking a simple question: why can’t funding accounts with fiat be as fast and seamless as moving money inside a neobank app? PSPs that can answer that question with Pay by Bank will be the ones that win the next wave of crypto on-ramp growth.
Stablecoins are becoming digital cash
Revolut’s launch of instant, fee-free fiat-to-stablecoin conversion is more than another crypto feature; it is a signal that mainstream users now expect frictionless access to digital assets.
Stablecoins, often USD‑pegged tokens (USDC/USDT) held on public blockchains, are increasingly used as a working balance rather than a speculative trade, which makes the speed and reliability of the initial funding step critical.
For crypto platforms, that funding step is often the weakest link in the journey. And when a user decides to deposit fiat, any delay, failure or unexpected fee translates into churn, lower trading activity and support requests.
Why cards don’t scale for crypto deposits
Cards have helped bootstrap the first generation of crypto on-ramps, but they are an increasingly poor fit for the volumes and expectations now in play. Interchange and scheme fees eat into margins, settlement delays create funding gaps, and chargebacks introduce risk and operational overhead that only grow with scale.
Crypto exchanges rank among sectors with high average chargeback values (£75 per incident, trailing only travel/hospitality at £90). Another issue that is particular to cryptocurrency exchanges is an extremely high chargeback rate. Chargebacks are significantly more common for crypto exchange transactions than traditional eCommerce, and chargeback ratios exceeding 0.9% trigger card scheme fines starting at £25,000 — even on defended claims, a frequent issue for exchanges due to thin margins where disputes can eat 30% of net profits.
On top of this, crypto is a high-friction category for card issuers and schemes, which means higher decline rates, increased 3DS and abandoned deposits.
When users are familiar with alternatives that are easier, secure and instant, every decline or extra step in the card flow becomes a reason to try a different platform next time.
Pay by Bank: the modern on-ramp
Working with Token.io, a leading PSP recently introduced Pay by Bank deposits for a fast‑growing European crypto platform, scaling from a small pilot to more than half a million fiat deposits in just six months, with sustained 20% growth monthly.
For exchanges, open banking–powered Pay by Bank is better aligned with how users expect to move money today. Rather than entering card details, users authenticate directly with their bank, approve the payment and see fiat settle significantly faster, often in just seconds.
For crypto merchants, Pay by Bank delivers lower and more predictable costs, fast settlement and the structural benefit of having no card chargebacks at all. Strong customer authentication is built into the flow, creating a familiar, bank-grade experience that supports trust in a category where security and compliance matter.
Why this is the moment for PSPs
Crypto merchants are actively looking for better deposit rails as they try to match neobank-level experiences and manage tight economics. The PSPs that can bring them a credible Pay by Bank option alongside cards will become strategic partners rather than interchangeable providers.
Deposit volume is the core revenue driver for PSPs in the crypto vertical, which makes completion rate and cost per funded account the key metrics to optimise. By adding Pay by Bank, PSPs can increase successful deposits, reduce funding costs and offer differentiated packages to high-value merchants, all without forcing users to abandon familiar bank accounts.
How Token.io helps leading PSPs deliver
Token.io helps PSPs offer Pay by Bank for deposits across thousands of banks in 21 European markets through a single API integration. Payments are routed via instant payment schemes (Faster Payments in the UK, SEPA Instant in Europe) which means crypto merchants and their customers, benefit from near-real-time settlement rather than waiting days for funds to clear.
For PSPs, Token.io is designed to slot into existing payment stacks, orchestration layers and risk controls. That makes it possible to roll out bank-powered deposits to crypto merchants without building and maintaining separate bank connections, while still maintaining control over UX, routing and reporting.
Example crypto funding journeys
A typical exchange deposit flow with Pay by Bank looks like this: the user chooses “Pay by Bank” as their funding method and selects their bank. The user is automatically redirected to their mobile banking app to approve the payment. The user is instantly returned to the exchange with their balance updated in near real-time. There are no card details to enter or save, and the user’s bank handles authentication with familiar methods such as biometrics.
For higher-value traders, Pay by Bank is particularly compelling. Where card limits and issuer controls can block larger loads, direct bank payments provide a compliant, lower-friction route for funding positions quickly, with clear visibility of when funds have arrived.
Your move
Revolut’s recent move to offer free and instant fiat-to-stablecoin conversion has made it clear that users will reward the platforms that make moving into digital assets feel fast, transparent and safe.
PSPs are in a unique position to help their crypto merchants meet that expectation by adding Pay by Bank as a first-class funding option.
If you are working with exchanges, wallets or trading apps today, or want to attract more business in this sector going forward. Now is the time to explore how Pay by Bank with Token.io can streamline deposit UX and improve economics.
Start by identifying a small set of crypto merchants where instant, low-cost bank payments could have the biggest impact on funded accounts and trading volume, then work with Token.io to bring those journeys to life.