One of the biggest challenges for decentralized application developers is onboarding new users. It’s far more difficult to do this in the weird and wonderful world of Web3 because for new users to get started, they need to be convinced to buy the cryptocurrency that’s required to interact with those dApps.
But convincing them to buy crypto is just one part of the problem. Developers also need to provide those users with a simple way to do it. That’s why so-called crypto on-ramp services like Transak and Moonpay are becoming such key elements of the Web3 ecosystem.
These on-ramp services provide an increasingly essential service for developers, allowing them to integrate the process of buying and selling crypto directly within their dApps, with a few simple lines of code. This integration means their new users won’t have to navigate through the pitfalls of finding a crypto exchange all by themselves.
That’s important, because it’s believed that many users will be more likely to give up than endure the hassle of signing up for a crypto exchange account. By letting people buy the crypto they need in seconds, in-app, developers are much more likely to onboard new users successfully.
By far and away the best known crypto on-ramps are Transak and Moonpay, the top two providers that control the lion’s share of the market. They are the titans of a crypto onboarding industry that’s growing in importance.
Transak vs Moonpay: How Do They Compare?
Although they offer a pretty similar service, Transak and Moonpay’s offerings are not identical to one another. There are some subtle differences between the two platforms, and developers would be wise to pay attention so they can understand which one is best for their dApp’s user base.
The differences span some key fundamentals, such as the range of cryptocurrencies users can buy, the payment mechanisms they support and the markets they cover. Developers need to consider the needs of their target audience in order to choose the most appropriate crypto on-ramp.
About Transak
Supported cryptocurrencies: As a crypto gateway, the number of actual tokens supported is a key consideration. Transak offers an extensive list of 173 cryptocurrencies at the time of writing, including all of the major tokens, such as Bitcoin, Ethereum, Solana, USDC, USDT, Dogecoin, and many more.
Supported fiat currencies: Crypto on-ramps are only useful if they can accept the fiat currency of the dApp’s user base. This is why Transak offers exhaustive support for all of the major fiat currencies, numbering 76 in total.
Payment methods: Users are also concerned about the type of payment method they can use. Transak excels with 17 different types of supported payment, including credit and debit cards, bank transfers, Google Pay, Apple Pay and others.
Payout methods: Transak’s payout options are much more limited, with just three available at the time of writing, including Faster Bank Transfer, SEPA and SEPA Instant. However, it does at least claim that its payouts are instant, with the money landing in user’s bank accounts in a matter of seconds.
Regional support: Transak extends its services to a total of 169 countries globally, supporting both fiat-to-crypto and crypto-to-fiat transactions in every market.
KYC process: Although crypto is decentralized, user verification is a key requisite for crypto-to-fiat interactions. Transak makes this as painless as possible with its multi-step KYC process, where users can get started quickly by only needing to provide a name and billing address (no documents required). To pass Level 2 KYC they’ll need to submit an ID, proof of address and go through a liveness test in order to increase their transaction limit to $20,000. For Level 3, and no transaction limits, users must undergo more detailed verification steps.
Integration: Transak makes life easy for dApp developers with a selection of APIs to integrate its platform, including its instant checkout SDK, React Native SDK and iOS, Android and White-Label APIs.
Fees: Fiat-to-crypto and crypto-to-fiat translation fees range from 0.99% to over 5% on withdrawals.
Affiliate program: Transak offers a fixed commission on each transaction by an affiliate referral. It also provides training and extensive support for affiliates, plus the chance to promote certain tokens with discounted exchange rates.
Other products: Besides its crypto on- and off-ramps, Transak has developed an NFT checkout for quick and easy fiat NFT purchases. It also provides access to the Transak One service, which enables users to engage in DeFi protocol functions such as staking and providing liquidity, with fiat currency.
About Moonpay
Supported cryptocurrencies: Moonpay’s fiat-to-crypto on-ramp allows users to purchase a total of 123 digital assets. Its list of supported tokens includes all of the major coins, but it lacks support for many lesser-known assets.
Supported Fiat Currencies: At present, Moonpay enables users to pay with 34 fiat currencies to obtain their crypto.
Payment methods: Moonpay supports just eight payment methods in total, substantially fewer than Transak, but it is the only on-ramp to support PayPal.
Payout methods: In terms of payouts, these are limited compared to its payment methods. At present, Moonpay lists five payout methods, including bank transfers, debit cards, PayPal, SEPA, SEPA Instant and UK Faster Payments. However, only PayPal and SEPA Instant allow for instant withdrawals.
Regional support: Moonpay currently caters to 158 countries, where users can both buy and sell crypto.
KYC process: Like Transak, Moonpay offers a step-by-step KYC process, beginning with a simple identity check, and ending in a more complex source of wealth verification. However, unlike Transak, which allows users to complete each level from the get-go, Moonpay’s system is incremental, and users can only proceed to the next level once they reach their transaction limit.
Integration: All told, developers can choose from six SDKs to integrate Moonpay, including Node.js, React and Web SDKs, plus Android, iOS and React Native APIs. It also offers simple URL integration, where developers can redirect users to Moonpay’s website within their app.
Fees: Moonpay charges a flat fee of 4.5%, or a minimum of $5 (whichever is highest) for both fiat-to-crypto and crypto-to-fiat transactions.
Affiliate program: dApp developers can set their affiliate commission at anywhere from 0.5% to 1.25% on each transaction. This flexible program enables users to strike the most optimal balance, considering the frequency their users interact with Moonpay.
Other products: Besides its crypto gateway, Moonpay offers an NFT checkout, a Web3 passport service and the HyperMint service for minting NFT-based assets.
Which Crypto On-Ramp Is Best?
From the above information, it is apparent that Transak has some fairly significant advantages over Moonpay, with the most important ones being its bigger list of supported cryptocurrencies, fiat currencies and regions, as well as its greater number of payment methods. Transak’s KYC process also appears to be more convenient for users, who can perform the various steps at a time that’s more suitable for them. Its transaction fees, on the whole, tend to be significantly lower, and its lack of a minimum withdrawal fee makes it more cost-effective for smaller withdrawals.
That’s not to say Transak beats Moonpay hands down. Moonpay has a clear edge in terms of its supported payout methods, and its affiliate program is more transparent and flexible (though we can’t be sure which is more profitable). It also offers a more diverse range of products, besides its main on- and off-ramp offering.
All told, Transak appears to be the better service, with its expansive support allowing it to support a wider audience of dApp users in more markets. It’s able to address more diverse needs, offering greater flexibility in many important areas.
Still developers will need to consider their targeted audience – Transak might not always be the most suitable option. Every dApp has its own needs in terms of token support, payment and payout methods and regional availability. Both platforms have solid reviews, with Transak rated at 4.2 stars on TrustPilot, and Moonpay slightly ahead at 4.3 stars.
Developers should remember that their goal when integrating a crypto on-ramp is to make life more convenient for their users. Both services do a good job of that, though Transak’s superior adaptability and flexibility give it a slight overall advantage.
