Checkout.com VP: Web3’s Success Depends on Bridging Payment Gaps with Web2

The real economic utility of Web3 — a broad term that refers to some future iteration of the internet — can only be realized by utilizing existing payment onramps and offramps, according to Max Rothman, vice president of crypto and digital assets of Checkout.com.

In an interview with Cointelegraph, Rothman explained that companies operating in Web2 and Web3 are largely siloed from one another, which means they cannot access each other’s benefits. “Web2 companies have mastered seamless online payments and the user experience,” he said, referring to businesses that operate in the current state of the internet. “For Web3 companies to continue to grow, they need a steady supply of new and existing users providing them fiat currency conversions into crypto.”

While crypto payments remove middlemen and offer higher security, merchants still have to manage volatility and apply for tax, among other issues.

An executive for Checkout.com claims mass adoption will be inevitable when those issues are dealt with.

As part of its crypto mandate, in June, Checkout.com launched a round-the-clock stablecoin settlement system based on Circle’s USD Coin (USDC). The company said more stablecoins and assets would likely be incorporated into the settlement system over time.

When asked about the current bottlenecks to greater Web3 adoption and understanding, Rothman explained that most companies operating on the internet today don’t understand the value of this new paradigm:

“The narratives and themes derived from Web2 introduced users to concepts like decentralization, censorship resistance and permissionlessness. However, Web2 companies don’t understand the use case or benefits of crypto, including opportunities to integrate Web3 strategies beyond just crypto acceptance.”

Industry Attitudes and Investment Directions

For all the talk of Web3, a unified definition of the term remains elusive, possibly due to the industry’s ongoing experimentation with blockchain technology. Nevertheless, venture capital is enamored by the concept and its potential, as evidenced by the massive funding flows to Web3 companies this year.

According to Cointelegraph Research, Web3 dominated almost every funding metric in the second quarter of this year, with early-stage investments in seed rounds totaling $2.18 billion. Web3 companies also saw more individual deals than the decentralized finance and centralized finance sectors.