Small cryptocurrency wallet providers face a critical challenge: users who need to swap, buy, or stake assets often leave the app to complete those transactions elsewhere, taking transaction fees and engagement with them. According to Yana Mar, Head of B2B and Partnerships at ChangeNOW, this gap between storage and active use represents a significant revenue leak.
Mar outlined the problem at TOKEN2049 in Singapore, explaining that wallet retention suffers when users cannot find the features they need. Storage alone generates no income for wallet operators, but enabling transactions inside the app keeps users engaged and creates revenue opportunities.
The Infrastructure Cost Barrier
Building and maintaining transaction infrastructure weighs heavily on smaller wallet teams. Rather than developing these features from scratch, Mar advised small wallets to integrate ready-made solutions for fiat on-ramps, swaps, and staking through third-party providers.
Finding a Competitive Edge
With major wallet providers now offering everything from stablecoin spending to tokenized stock trading, smaller teams need a distinct focus. Mar identified five strategies for differentiation:
- Regional focus: Add local payment methods and support teams tailored to specific markets
- Specific audience: Build features for particular communities, such as Dreamster, which serves music fans with Digital Music Assets
- Security emphasis: Make trust and safety the core value proposition
- Speed: Ship features in weeks rather than months
- User experience: Maintain quality as the product scales
Competing on Value Rather Than Zero Fees
Some larger wallets have removed fees on certain stablecoin swaps, a move small wallets cannot easily replicate. Mar cautioned against pursuing the same strategy, noting that these zero-fee offers typically apply to limited networks and coins. Network fees still apply, and cross-chain swaps remain excluded.
Instead, small wallets can differentiate by offering superior experiences, including cross-chain swaps and support for assets larger competitors do not readily list. Mar emphasized that what users receive matters more than how the fee is labeled.
Support Structure and Integration
When wallets integrate exchange services, clear lines of responsibility prevent user frustration. Exchange providers handle transaction-specific issues, while wallet support teams maintain the user relationship. This division allows partners to handle integration problems without burdening wallets with technical support for failed swaps.
Early Revenue and Growth Programs
ChangeNOW launched its Fast Track program in March to help new wallets generate revenue from day one. Participants integrate the exchange API and earn from swaps immediately, with revenue sharing starting at 0.4%. The program includes marketing support through cross-promotion, press releases, and industry events.
Building Security and Trust First
Mar stressed that security must remain a top priority for wallet teams. The industry experienced significant losses to hacks in recent months, with fear of theft and scams remaining barriers to mainstream adoption. Building a trustworthy product is essential for growth.
Rather than attempting to build every feature in-house, small wallets benefit from partnering with proven providers. This approach allows teams to add features efficiently while reducing development complexity and cost. By focusing on what users need and where the wallet can deliver a superior experience, smaller operators can build sustainable revenue streams without directly competing on price or feature breadth with larger platforms.
