Business Models
New payment rails. New business models.¶
The Stablecoin Stack creates commercial structures that were not previously viable โ or did not exist at all. This catalogue maps the opportunity space.
Revenue primitives¶
Every business model in this catalogue is a combination of one or more fundamental revenue mechanisms:
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Transaction fees (on-chain)¶
Collected automatically by the settlement contract on every payment. Denominated in the stablecoin being transacted. No bilateral agreement with the merchant required.
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Subscription fees (fiat)¶
Recurring monthly or annual fees from merchants for access to the payment service. Independent of transaction volume. Predictable revenue floor.
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Acquirer commission¶
A registered acquirer earns a percentage of the principal on every transaction that references their ID. Distributed automatically by the settlement contract, in real time.
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Conversion spread¶
In custodial configurations: the processor receives stablecoin and delivers fiat. The spread between the stablecoin value and the fiat amount delivered is a revenue line.
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Float income¶
In custodial configurations: stablecoin held between receipt and fiat disbursement can be deployed in yield-bearing instruments. At scale, this is a meaningful revenue line.
Processor models¶
PP-1 โ Transaction-Fee Processor¶
The simplest model. A per-payment fee, collected automatically through the settlement contract. Non-custodial settlement. No monthly fees. No fiat infrastructure required.
Best for: Early-stage processors. Developer-focused deployments. Markets where digital asset holders are already common.
PP-2 โ Subscription-Based Processor¶
A recurring monthly or annual fee in fiat for access to the payment service. On-chain fees set near cost-recovery only. Predictable revenue, B2B commercial relationship.
Best for: SME and enterprise-focused processors. Deployments where a broader product suite (analytics, integrations, support) justifies a subscription.
PP-3 โ Blended Fee Processor¶
A lower subscription fee combined with a reduced per-transaction fee. The dominant commercial structure in mature payment processing businesses โ predictable base revenue plus volume-correlated upside.
Best for: General-purpose processors. The recommended default for most new deployments.
PP-4 โ Custodial Full-Service Processor (Fiat-Out)¶
The processor accepts stablecoin payments on the merchant's behalf, converts to fiat, and remits to the merchant's bank account. The merchant interacts entirely in fiat.
Revenue: transaction fee + conversion spread + float income + optional fiat-settlement premium.
Best for: Processors targeting merchants with no appetite for digital asset management. The largest addressable merchant market.
Note on regulatory complexity
Holding client funds โ even briefly โ activates custodial obligations in most jurisdictions. This model requires banking relationships and regulatory compliance infrastructure. It offers the highest revenue potential and the highest operational complexity.
PP-5 โ White-Label Processor¶
Deploy the Stablecoin Stack as infrastructure and licence it to other companies who want to offer stablecoin payment acceptance under their own brand.
Revenue: licence fee or revenue share from white-label clients.
Best for: Infrastructure-focused companies with strong technical depth. Wholesale distribution over direct merchant relationships.
PP-6 โ SaaS Infrastructure Provider¶
Sell managed, hosted Stablecoin Stack infrastructure to other companies who want to become payment processors. The customer launches a processor business; you provide the infrastructure as a service.
Revenue: monthly SaaS subscription + usage-based billing.
Best for: Companies already operating developer platforms or cloud infrastructure who want to expand into payment rails.
PP-7 โ Embedded Finance Processor¶
Integrate payment acceptance capabilities directly into a host platform โ an e-commerce solution, accounting system, or business management suite โ so that merchants on that platform can accept payments without leaving.
Revenue: revenue share with the host platform on transaction fees.
Best for: Processors with strong developer and partnership capabilities. An effective first entry point into a market.
PP-8 โ Float-Yield Processor¶
Charge no transaction fee and no subscription. Generate revenue entirely from deploying stablecoin balances in yield-bearing instruments. The zero-fee positioning is a significant market differentiator.
Revenue: yield on stablecoin balances.
Why this is possible now
This model was not viable on card rails because card networks require fees to compensate each party in the settlement chain. There is no such mandatory fee sharing in the Stablecoin Stack. The processor captures all economics, and can afford to offer zero-fee processing if their yield operations are sufficient.
Best for: Capital-heavy operators. Treasury-focused businesses.
PP-9 โ Vertical-Specific Processor¶
Focus on a single industry โ hospitality, logistics, freelance services, cross-border payroll โ and build the checkout and reconciliation experience around that vertical's specific needs.
Revenue: any combination of fees, subscriptions, and premium vertical features.
Best for: Founders with domain expertise in a specific industry. Processors differentiating in a competitive market.
Acquirer models¶
The Acquirer role is one of the most underutilised commercial opportunities in the Stablecoin Stack. Any registered third party can distribute the payment service and earn a share of the processing fee โ automatically, on-chain, without a bilateral trust arrangement with the processor.
AQ-1 โ Classic Distribution Acquirer¶
Sign up merchants, refer them to a processor, embed your Acquirer ID in their payment flow. Earn commission on every transaction they process, automatically.
Revenue: on-chain commission on all referred merchants' transactions.
AQ-2 โ Wallet-as-Acquirer¶
A digital wallet developer registers as an acquirer. Every payment made through the wallet carries the acquirer ID and earns commission.
Revenue: passive commission on all wallet-originated transactions.
This is genuinely new
Traditional wallet providers do not earn commission from the payment networks their users transact on. The Stablecoin Stack's open acquiring model makes wallet-originated commission possible for the first time.
AQ-3 โ Point-of-Sale Hardware Acquirer¶
Manufacture or distribute payment terminals pre-configured with your acquirer ID. Every payment processed through a deployed device earns commission โ indefinitely.
Revenue: commission on all transactions through deployed hardware + hardware margin.
AQ-4 โ Regional Agent Network¶
Recruit local agents โ small business owners, community representatives โ who each earn a share of the commission by signing up merchants in their area. Penetrate markets where formal sales channels don't reach.
Revenue: commission (net of agent payouts) on the agent network's merchants.
AQ-5 โ Platform Acquirer¶
A marketplace, app store, or SaaS platform registers as an acquirer and embeds the payment method into its platform. All merchant transactions carry the platform's acquirer ID.
Revenue: passive commission on all platform merchant transactions.
AQ-6 โ DAO Acquirer¶
A collectively governed organisation registers as an acquirer. Commission flows into a shared treasury governed by the members โ merchants, payers, developers, community contributors.
Revenue: commission directed to DAO treasury; distributed per governance rules.
Combined and emerging models¶
| Model | Description | Revenue Source |
|---|---|---|
| C-1: Vertically Integrated | Operate as both processor and acquirer. Capture full fee stack on self-originated transactions. | Processor fee + acquirer commission |
| C-2: Cooperative Network | Group of companies jointly funds processor infrastructure. Each earns acquirer commission on their merchant portfolio. | Shared commission, shared infrastructure cost |
| C-3: Franchise Network | Franchisor operates the processor. Franchisees operate as acquirers in defined territories. | Base fee (franchisor) + commission (franchisee) |
| U-1: Merchant Collective | Merchants collectively own and operate their own processor. Eliminate third-party processor fees entirely. | Cost reduction, not revenue |
| U-3: Refund-as-a-Service | Custodial processor manages refunds at the fiat disbursement layer. Offered as a premium service to consumer merchants. | Premium subscription + per-refund fee |
| U-5: Treasury-as-a-Service | Hold and manage merchant stablecoin balances in yield-bearing strategies. Pass share of yield to merchant; retain management fee. | Treasury management fee |
| U-7: Loyalty Infrastructure | Embed loyalty programmes at the payment layer. Automatic credit on every confirmed payment. | Premium merchant fee |
| U-8: Programmable Escrow | Hold funds until defined conditions are met. Release automatically. Viable for any transaction size. | Escrow fee + float income |
Where to start¶
If you are evaluating the Stablecoin Stack as a commercial opportunity, the Foundation recommends:
- Start with the blended fee model (PP-3) โ predictable base revenue with volume upside. The default for most new processor deployments.
- Start non-custodial โ lower regulatory complexity, faster time to market. Add custodial services once the core business is established.
- Treat the acquirer model as a distribution tool โ not an afterthought. The commission mechanism can build partner networks with aligned incentives that enforce themselves on-chain.