Web3 Payments: The In-Depth Guide for Consumer Brands

October 19, 2023

Consumer brands need a seamless multi-option payment system to satisfy customers and create a high-quality experience. 

Web3 payments are growing in demand as consumers crave alternate options to purchase and engage with brands. These modernized payments involve AML/KYC compliance, digital wallets, blockchain, smart contracts, crypto, and dozens of tools to create a web3 ecosystem. 

But here's the good news: With Mojito, brands easily accept payments with traditional methods like credit cards or bank information, alongside web3 digital payments. Mojito brings it all together so you can increase sales and meet customer demand without stress.

Right now, brands have the opportunity to become pioneers in the consumer web3 shift. Customers can pay how they want—whether with a credit card or a cryptocurrency like Ethereum.

Together, we'll dive into the uniqueness of web3 payments, blockchain and crypto, benefits, and how to integrate web3 no matter your adoption stage.

Unpacking web3 payments

Web3 digital payments are one component of the web3 ecosystem. Web3 is considered the third iteration of the internet. 

Three phases were built on top of each other to create an immersive internet:

Web1: This was the read stage. You could get information from a web page or use the internet as a reference. 

Web2: The "write and publish" stage gave everyone the power to engage with each other through social media and other platforms that presented everyone with their own corner of the internet. 

Web3: The phase we find ourselves in today is about digital ownership. Internet users can create something and own it as an asset. They can pay for products through various digital currencies. 

The best brands have nurtured and serviced their customers through every iteration of the internet. Because of this, they became (and many remain) the biggest movers in the market. 

Web3 ownership has the following characteristics:

1. New revenue streams

When customers buy a digital good from your brand, it's theirs. But for the first time, brands can add a new revenue stream through the re-sale of their digital goods. 

If a customer wants to resell an NFT you minted, you can earn a percentage in royalties. Also, if someone sells an item in your marketplace (Mojito can power this with our white-label solution), you can receive a portion of the transaction.

2. Audit capability

Brands build their reputations on quality and customer experience (creating trust). It's vital to develop a payment environment that's transparent and secure for traditional and web3 payments.

Web3 technologies provide transparency, automation, and audit capabilities. When someone makes a transaction, like a web3 payment or transfer of ownership, it’s recorded on a public ledger—the blockchain. 

If it’s a digital asset like an NFT (non-fungible token), it has a unique identifier tied to you until you sell it. Since this is public information, everyone knows what data is shared and can verify its authenticity. 

This allows brands and consumers to trace the provenance and transaction history of digital assets. This offers a safer and more transparent form of ecommerce.

Not only are these benefits good for consumers, but they also add additional levels of safety and better responsibility standards for brands interacting with their customers and communities.

Smart contract automation also helps save operational time, cost, and labor.

3. Digital ownership for customers

Thanks to the blockchain (a public ledger), platforms can integrate themselves with it, and users can ideally maneuver between spaces and apps. Consumers can own their digital assets outright.

For example, customers can purchase your NFT in a marketplace with Mojito’s white-label solution. Since the token, provenance, and transaction are recorded on the blockchain, consumers own it no matter what marketplace they bought it from (like with a physical purchase). 

Customers don't need a credit card company, the merchant bank, or the bank to communicate. Instead, they can transact directly with you—the merchant—and have immediate ownership. 

Everyone saves on fees and once that payment is sent, you don’t have to worry about chargebacks or losing on completed sales. Mojito makes the payment and integration experience easy and user-friendly, like the internet experience everyone loves today.

More importantly, brands prevent becoming obsolete (like the iPhone apps Apple created that replaced everyday necessities) and can instead become definitive leaders in the market.  

4. Community and culture

Through token-gated access (when customers have exclusive access to a community, rewards, virtual events, or physical events because of NFT or similar ownership within your brand project), they can join other passionate customers and invest in your brand. 

Web3 cultural identity plays a huge role. It’s the idea of freedom over your digital assets and data, fostering creativity and innovation. Web3 payments facilitate the buy-in as customers want to grow closer to your brand. 

5. Fast payments

Since web3 payment infrastructures do not rely on a centralized bank or intermediaries, the transactions settle immediately.

Faster transactions provide multiple benefits to both the brand and the consumer. The first is better cash flow. Businesses have more control over their funds, with faster payments arriving in their accounts. 

Another plus is a smoother experience. Customers can get their asset or reward as soon as they purchase it without waiting for delayed funds or a slow system. 

Faster payments create a real-time approach to transactions to improve security, asset delivery, and overall experience. 

The role of blockchain and cryptocurrency in web3 payments

As you develop your web3 payment solution, you’ll quickly need to align significant pieces of the web3 ecosystem. Like a machine, you cannot rely on one part to get the job done. Each piece should flow together, operating seamlessly. 

Smart contracts and web3 technologies unite to make this possible. 

Expanding your capabilities to web3 is not about choosing it over web2. It's about adding support for the growing demand onto your existing infrastructure. 

Mojito simplifies everything, supports the entire web3 ecosystem, and integrates with the tools you already use. You don't have to worry about the complexities of web3 or changing your system altogether. Instead, you can benefit from expanding your payment capabilities through solutions that make it easy and familiar for everyone. 

Smart contracts

Brands can place parameters on a digital contract for transactions that remove intermediaries and risky anomalies. 

For example, when someone purchases an NFT from your brand, a smart contract kicks in, recording it on the blockchain and transferring funds and ownership. Web3 transactions can be predictable and secure thanks to smart contract technology. 

Web3 payments encompass these facets of the ecosystem, along with others, to ensure successful transactions and user experiences.

Brands can also use this to pay vendors or any party, especially if it's related to a sale when people should get a percentage of the proceeds. They can easily write that into a smart contract for immediate execution. 

Credit cards and traditional payment options

Web3 doesn't have to feel new and doesn't need a learning curve. If brands partner with a SaaS like Mojito, they can easily connect the familiar web experience with the future. 

Customers can pay with credit cards, wires/ACH, or digital methods like Apple Pay and still reap the web3 benefits. 

Mojito connects the two building blocks of the internet and integrates the payment and experience. 

Fundamental advantages of web3 payments

As brands incorporate web3 payments, they can utilize several benefits for their operations:

1. Multi-payment inclusivity 

Web3 payments give everyone more access to valuable digital goods. If customers want to pay with different cryptocurrencies, they can. If customers wish to pay with local currency or digital payments via Apple Pay/Google Pay, they can do that, too. 

Customers can pay however they want through a traditional checkout experience. That means brands can benefit from increased sales and opportunities by meeting everyone's needs within web3.

The best part? Brands can use the tools they have today. Mojito's solution integrates and works with your web2 infrastructure. You can scale and grow with your customers as consumer web3 demand builds. 

2. Royalty payments

Brands can utilize web3 payments for royalties. This is a significant innovation for companies. They can use smart contracts to set up automatic parameters. 

For example, if there is a collaboration, let's say, between a brand and a high-profile artist, you split royalties based on your agreement. Additionally, if someone resells a digital asset on any onchain marketplace, you can get a royalty from that sale. 

Royalties create a new revenue stream for brands with long-term ROI potential.

3. Token gating opportunities 

Token gating creates value for customers by offering limited-access benefits, like private communities, events, or additional assets. Only owners of the token can access these perks. 

Brands can use token gating in connection to their web3 payments strategy to increase customer engagement and add new sales opportunities. 

For example, when Mojito partnered with the Tampa Bay Rowdies for an immersive fan experience, they knew token gating would offer the perfect solution.

Mojito facilitated the Rowdies Digital Pass creation. Season ticket holders could claim their NFT (the digital pass) and use it for 20% off discounts for food and drinks and select retail locations. The majority of season ticket holders jumped in. They loved the chance to experience innovative tech and join a membership community with their soccer team. 

Because of the success of the digital pass, the Rowdies verified onchain and offchain customer engagement data during their games, offering a valuable source to fuel their strategy and growth. 

Bridging the web2 and web3 payment gap 

Each web version is a building block, and brands have the opportunity to lead in web3. If they're too late, other brands will facilitate customer needs. Instead, if a brand takes hold of the reigns, it can process diverse customer payments, no matter what they are, and attract new consumers.

Source: Google Trends

In the last year alone, “crypto” has generated as much interest as “social media”—sometimes more. As these interests continue to spike, it hints at the incoming need for web3, online communities, and a desire for alternative payment methods. Brands can bridge the gap between these two trends and offer a solution. 

What’s surprising about these two terms is how prevalent social media has become in the last fifteen years. If web3 concepts (especially relating to finances) are just as popular, brands need to consider their response just as they did when they invested in social media platforms. 

Not everyone uses web3 features, but it continues to grow and will become the primary way we use the internet. Leaders can adopt the infrastructure to support prior web uses while also providing a robust web3 solution to lead the market and support customers. 

The right web3 payment processing solution can reconcile the divide by servicing everyone, no matter where they are in the web3 journey.

It’s all in the same place and done super fast. For example, Mojito makes it easy for users to buy your brand's NFT with a credit card. In seconds, they can connect their card, and Mojito’s technology facilitates the switch to the appropriate cryptocurrency to make the purchase. 

Payment solutions should also offer many relevant integrations that combine web2 legacy tools with the web3 apps, marketplaces, and solutions customers use.

How Mojito enables brands to confidently & securely utilize web3 payments

Mojito offers the most scalable, seamless web3 payment experience available for enterprise brands and customers. 

It’s user-friendly, so anyone can make a web3 purchase for the first time while providing the complex and necessary tools required for brands to fully utilize web3.

Brands don’t have to do guesswork or deploy crazy resources to conquer the new web. Mojito’s web3 payment solutions include the best tools for wallets, NFTs, marketplaces, CRMs, and everything you need for a successful web3 launch. 

Navigating compliance, legal, and tax

Mojito empowers all your customers to participate with the ability to accept traditional payments like credit cards, wires, Apple Pay, and crypto payment options. 

Mojito also provides a user-friendly crypto-paying experience and makes the experience much safer for brands. 

As a Merchant of Record, Mojito handles compliance, tax, fraud detection risk, and troubleshooting. With its payment mixer, businesses can introduce quick and convenient transactions to enhance customer satisfaction and drive revenue. 

We are OFAC, KYC/AML compliant and ensure brands are protected from fraud. 

Customers don’t have to worry about a complex journey as they purchase an asset or join a community with your brand. Mojito makes it easy to participate as a web2 user or one that is fully web3 knowledgeable. 

Instead of worrying about risks and complexities, Mojito can create a better experience. Your brand can build your community, energize your passionate customers, and create a web3 experience that grows your company.

You can try the demo today or learn more and see how Mojito can help your brand win web3 and the future of payments.

Remember: As your customers join the greatest internet innovation of their time, you want to be there, doors wide open.

WEB3 RESOURCES FOR BRANDS

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A Web3 Interview with Mercedes-Benz NXT

May 24, 2024

Learn more about the Mojito-powered ‘Era of Technology’ NFT collection.

Our latest partnership with Mercedes-Benz NXT, the Mojito-powered ‘Era of Technology’ NFT collection, is officially live!

Launched on May 21, the 780 collectible drop is now on sale until May 28, and you can go mint an NFT from the collection at this link.  

ICYMI in last week’s blog: each collectible is on sale at 0.08 ETH, including collectors’ discounts, and you can pay via ETH or your credit card. 

The drop also features a slew of features built by our web3 studio at Mojito — including our APIs, SDKs, and white-labeled, on-demand wallet creation — which powered the sale mechanics (including a unique discount feature) and made it super easy for Mercedes-Benz NXT to get its collection into the hands (and wallets) of its community. 

To continue spreading the Mojito x Mercedes-BenZ NXT gospel, we spoke with Sebastian Ihler, Co-founder and Head of Product 0xNXT GmbH (Mercedes-Benz’s web3-focused product studio), to learn a little more about what sparked the project, gain some insights for web3 brand leaders like yourself, and celebrate the onchain collection of stunning digital objects.

Let’s get into it. 

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Mojito Brought the Toledo Museum of Art’s Debut Web3 Collection to Market with 10,000 NFTs — and Zero Code

January 18, 2024

Learn how we helped the museum tell an essential cultural story through the power of digital art and community.

Mojito's technology breathes life into dynamic web3 experiences for brands. We simplify the complex backend, allowing the front end to effortlessly focus on the fun stuff – including sticky consumer engagement.

Our recent collaboration with the forward-thinking museum turned this vision into reality. Mojito worked with Toledo's team to orchestrate a digital art experience by Osinachi & Yusuf Lateef. Our community engagement portal enabled Toledo to provide a smooth minting process, hassle-free claims, turnkey community management and reporting for the museum. The result? A powerful drop of 10,000 NFTs.

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The Web3-ification of Credit Card Loyalty Programs

January 11, 2024

Visa's new web3 loyalty program is no accident.

Swipe (or nowadays, tap) your credit card, and earn points. A process that’s now commonplace has a lengthy history that can teach us more than a few things about customer loyalty — and its journey through technology. Let’s start at the beginning. 


From paper to plastic 💳


While the history of credit cards dates back thousands of years, things turned from stone to metal — and later paper and plastic — about halfway through the 20th century with the arrival of the modern credit card in 1950. Reportedly invented following a case of a forgotten wallet, The Diner’s Club Card (initially owned by Discover Financial Services before its acquisition by BMO in 2009) was the first multipurpose charge card credit card intended primarily for dining and travel expenses. 

The Diner’s Club was also the first to pair the concept of charging credit with fueling consumer loyalty through the inception of points. Through partnering with dining, entertainment, and later, travel entities (i.e., airlines, rental cars, and hotels), Diners Club cardholders paid a tiered annual fee to gain special perks based on how much money they spent. The greater the yearly fee, the greater the perks. 

About eight years following Diner’s Club in 1958, American Express entered the credit card industry with the world’s first international charge card, which initially had an annual fee of $6 (one dollar more than Diner’s Club). Shortly after, Bank of America and Mastercard followed suit. During this initial period, most credit cards focused on offering customers just that — credit — with loyalty and reward yet to take off.