RedotPay's B2B Gateway Cuts Merchant Fees 70% on Crypto Payments

RedotPay launched a B2B payment gateway Wednesday that lets merchants accept crypto and settle instantly in local fiat. The product, RedotPay Connect, cuts transaction costs by roughly 70% compared to traditional card networks, the company said.

The gateway routes a crypto payment through stablecoin infrastructure and converts it to local currency at settlement. That skips the multi-day clearing cycle and the interchange fees Visa and Mastercard charge. RedotPay said it already handles payments for 10 million users across 180 countries. The B2B service opens that network to online retailers, subscription services, and digital platforms.

Merchants integrating RedotPay Connect do not need to hold crypto themselves. The system accepts Bitcoin, Ethereum, and a range of stablecoins, then credits the merchant in their preferred fiat currency. RedotPay takes a cut of the transaction spread instead of the percentage-per-swipe model that dominates card processing.

The move puts RedotPay in direct competition with traditional acquirers and with other crypto-to-fiat rails like MoonPay and Coinbase Commerce. The company argues its stablecoin-first approach offers lower fees. It bypasses the card network's infrastructure entirely.

RedotPay, founded in 2020, has focused on stablecoin infrastructure for individual users until now. The B2B gateway marks its first enterprise product. The company did not disclose the number of merchants already signed up or the total payment volume flowing through the platform.

The target market includes international merchants who pay high cross-border card fees. A merchant selling to customers in Brazil, Nigeria, or Thailand typically loses 3% to 5% per transaction in currency conversion and cross-border fees. RedotPay's gateway settles in the merchant's local currency at the wholesale exchange rate, the company said.

RedotPay said the gateway processes transactions in seconds, not days. A customer pays with USDC or USDT. The payment is routed through RedotPay's liquidity pool, converted at the spot market rate, and deposited into the merchant's bank account in their local currency. The merchant pays a flat fee per transaction, not a percentage. RedotPay said the fee is roughly 70% lower than what Visa or Mastercard charge for an equivalent cross-border card payment.

The product targets merchants with high cross-border volume. Subscriptions, digital goods, and e-commerce are the first verticals. RedotPay said it already has pilot integrations with several unnamed online retailers.

The company's existing user base of 10 million consumers uses RedotPay's card and app for spending crypto at physical stores. The B2B gateway taps that same liquidity network, letting merchants access those spenders without building their own crypto checkout.

RedotPay's approach mirrors the pay-in-crypto, settle-in-fiat model that PayPal and Square have tested. The difference is the focus on the stablecoin settlement layer rather than the consumer wallet. The company said its advantage is the existing user base and the liquidity depth across multiple stablecoins.

The launch comes as traditional payment networks face increasing regulatory pressure and as stablecoin adoption grows. Circle's USDC and Tether's USDT together have a combined market capitalization above $150 billion. Regulators in Europe and Asia are writing stablecoin rules that could either encourage or restrict the use of such gateways.

RedotPay is headquartered in Singapore and registered in the United States as a money services business. It holds licenses in several U.S. states and in the European Union under the e-money directive, the company said.

RedotPay Connect is available starting Wednesday in more than 50 countries. The company plans to expand to the remaining markets in the second half of the year.