Crypto needs more no-fee, open-source payment tools

BlueYard’s head of crypto research developed FreePay to make fee-free, tap-to-pay crypto payments a reality

OPINION
article-image

JulieK2/Shutterstock and Adobe modified by Blockworks

share

This is a segment from The Drop newsletter. To read full editions, subscribe.


A crypto researcher has whipped up an open-source payment processor within a week that lets a buyer tap a crypto wallet on a mobile device to pay for items without any processing fees typical of credit cards and terminals like Square.

Tim Robinson, head of crypto research at VC firm BlueYard, shared a video of the device in action this week making a payment with the MetaMask app on his phone. 

The terminal, which he’s dubbed FreePay, has a few different components, including an NFC reader and a screen for the seller to type in the amount they want to charge.

“We’re supposed to be replacing TradFi, not joining them,” Robinson said.

Robinson built a companion app for sellers using FreePay and an Android app for customers, but notes that FreePay only works with MetaMask and Coinbase Wallets (at least in its current form).

Loading Tweet..

In recent months, crypto firms — from Coinbase to MetaMask, Avalanche to Solayer — have all unveiled their own various crypto payment cards using traditional payment processors like Visa, Mastercard and even American Express. 

But while these big-name TradFi firms have widespread reach, their fees aren’t inconsequential and can cut into businesses’ bottom lines or result in those higher costs being passed on to consumers.

Visa credit card fees per transaction can be anywhere from 1% to over 2%, while Amex fees are typically higher, and can range from 1.4% to over 2.5%.

Of course, blockchains come with their own set of fees, but ultimately that depends on the chain used. Ethereum L2 and Solana fees are much, much lower, especially when considering credit card fees plus the 2.6% and up additional fee added just for using a Square terminal. 

“I started with L2 support because that’s what I know best, but because it’s open source anyone can extend it,” Robinson told me in a DM of FreePay, adding: “Would love to see others add more chains and more wallets to support the standards needed to work with it.”

Crypto use in the US does come with some tax rules, though, which can deter some from using it as a payment method because it’s more complex than a stablecoin or fiat currency payment. 

But hey, if you want to spend your crypto directly from your wallet in a tap-to-pay method, FreePay looks like one potential way for merchants to let you do just that.

I personally think we’re still a little ways away from actually seeing crypto being used for daily, small payments at scale, but the crypto industry really should reconsider its full-tilt embrace of fee-heavy, decidedly centralized payment systems (and systems that refuse to bank businesses like legal dispensaries and sex workers).

As others have pointed out, crypto could also benefit from more open-source tech more broadly, including hardware wallets. Open-source tech is inherently more decentralized by design — and allows different motives besides maximizing profits alone to come into play. 

A lot of compromises have been made by big crypto firms in pursuit of “mass adoption.” But maybe it’s time we look back at history and remind ourselves why bitcoin was even invented in the first place.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).png

Research

Aave’s revenues have doubled from April lows and are fast approaching all-time highs. With 35% of borrow interest coming from ETH and 55% from stablecoins, Aave is emerging as a powerful proxy as an ETH and stablecoin beta. As looping strategies accelerate growth and Horizon positions the protocol to ride the RWA wave, Aave is shaping up as one of DeFi’s most compelling multi-narrative plays.

article-image

The first Solana treasury company is set to make its US debut

article-image

The Solana DAT reportedly plans to raise $1 billion

article-image

YO’s new yoEUR vault lands as incentives try to pull EURC onchain, but fragmented bridges and caps keep markets segmented

article-image

Astana regulator begins trial accepting USD-backed stablecoins for payments through Bybit integration

by Blockworks /
article-image

The Trump-backed DeFi project is believed to have blacklisted Sun’s wallet, triggering market pressure

by Blockworks /
article-image

Trump Media closed a $105 million agreement with Crypto.com for Cronos tokens

by Blockworks /