What Does a Good Fiat-Crypto On-Ramp Look Like?

On the surface, a crypto on-ramp allows users to convert their fiat currencies (such as USD, EUR, GBP) into cryptocurrencies (such as Bitcoin, Ethereum, etc.). It’s essentially the entry point for individuals who wish to purchase cryptocurrencies using traditional money. But, why is it important that we develop good on-ramps? 

Globally, the cryptocurrency ownership rate is estimated at 6.8%, with over 560 million cryptocurrency owners. Sure, this figure represents significant growth, an increase of around 8,000% since 2016, but there’s still a long way to go. 

One of the greatest barriers to widespread adoption is accessibility. In other words, newcomers often find it challenging to acquire cryptocurrencies using the traditional fiat currencies they are familiar with. Fiat on-ramps provide a seamless bridge, allowing users to easily purchase cryptocurrencies directly with their local fiat currency via bank transfers, credit/debit cards, or other payment methods. This significantly lowers the entry barriers.

Despite this, the process of acquiring cryptocurrencies can still be daunting for non-technical users. This is why user-friendly interfaces and streamlined processes for converting fiat to crypto and vice versa are so important. These systems should mirror those familiar to users from the traditional banking sector.

Today, we’ll examine Lunu, a novel crypto payments gateway, and explore how they have addressed the on-ramp challenge while maintaining user-friendliness, convenience, and competitive pricing.

Take notes, townspeople of Web3! 

1. Initial Purchase Screen: Buy Crypto

Lunu provides advanced fiat-to-crypto and crypto-to-fiat exchange services, and even operates an NFT checkout. Here’s what their user experience looks like. 

Beginning with a straightforward interface, users are prompted to "Buy Crypto." They start by entering the amount they wish to spend in their local fiat currency (e.g., EUR) and selecting the cryptocurrency they wish to receive (e.g., BTC). The interface shows the conversion rate and the amount of cryptocurrency the user will get, with a countdown indicating how often the quote updates, ensuring transparency and real-time pricing.

2. Selecting a Payment Method

Upon entering the desired purchase amount, users proceed to select their preferred payment method from a variety of options. Lunu offers multiple payment methods to cater to different user preferences, from credit/debit card options and Apple Pay, to Bancontact and Sofort. 

This wide range ensures that users can choose the most convenient and familiar method for them, enhancing the user experience.

3. Confirming Your Order

Once the payment method is selected, users are directed to the order confirmation page. This page summarises the transaction details, including:

• The amount of cryptocurrency to be received;

• The total cost in fiat currency;

• The selected payment method;

• The destination cryptocurrency wallet address.

The flow also ensures that customers are informed about the transaction's non-reversible nature, inviting them to read the terms of use. 

4. Order Completion

After confirming the order, users receive a notification that their order is complete. This screen provides reassurance that the transaction has been processed successfully. It also informs the user that they will receive a confirmation email from Lunu, adding an extra layer of communication and record-keeping.

In our opinion, Lunu’s user flow exemplifies a well-designed fiat-crypto on-ramp by combining simplicity, transparency, flexibility, and security. This holistic approach ensures a positive user experience, driving the widespread adoption of cryptocurrency services.

More on the Lunu Ecosystem 

While today's focus has been on Lunu's approach to on-ramping, it's important to highlight that at its core, Lunu is a comprehensive crypto processing solution. Featuring an MPoS terminal, it is designed to seamlessly integrate into various retail environments, operating on a network of various exchanges and liquidity providers that determine the market price for crypto-to-fiat conversions. Additionally, system oracles monitor and verify transactions across third-party blockchains to ensure accuracy and reliability.

Complementing the on-ramp services we have looked at today, Lunu also provides an efficient off-ramp solution, allowing users to convert their cryptocurrencies back into fiat currency seamlessly. This off-ramp service is particularly valuable for users looking to settle their crypto holdings into traditional bank accounts, with bank transfer payouts available across the EU and the UK. The off-ramp pricing is competitive, ensuring affordability alongside convenience.

Final thoughts 

New tech is hard to wrap your head around, so it’s important that we on-ramp right. 

Take KYC as an example – with the advent of digital banking and tightening fintech regulations in the early to mid-2010s, most of us are now familiar with the process of scanning our ID and taking a selfie, or passing what's known as a liveness test to prove our identity. Despite this, recent surveys found that two-thirds (66%) of digital service users had abandoned a digital bank application due to issues with the KYC process. This amounts to an estimated €5 billion in losses for financial institutions annually from onboarding drop-offs.

What's more, the target generation for crypto, Gen Z, has been recorded as being far more likely to abandon KYC processes compared to older age groups. After all, they have lower tolerance for inconvenient, time-consuming, or complex user experiences.

KYC is just one example of a new-era technology that’s having a tough time with learning curves. As such, when approaching novel technologies such as fiat-crypto on-ramps, the user experience should be a top priority. When combined with top-notch security, flexibility, globality, and a competitive price, we find ourselves with the solutions that are key to the mass adoption of not just crypto payments but Web3 as a new financial norm. 

If you’re interested in learning more about Lunu’s payment ecosystem, feel free to follow this link.