nav
Business Operations Business Models

How Does MoonPay Make Money (Business and Revenue Model)

The MoonPay business model

MoonPay logo
Here’s what you should know:
  • What is MoonPay, and how does MoonPay work?
  • How does MoonPay make money?
  • Transaction Fees (Processing Fees)
  • MoonPay Concierge
  • MoonPay funding, net worth, and valuation
  • MoonPay profit and revenue
  • What is the MoonPay business and revenue model?
  • MoonPay subsidiaries, acquisitions, and exits

How does MoonPay make money? Well, here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the MoonPay business and revenue model, how much MoonPay makes per year, and how MoonPay works.

What is MoonPay, and how does MoonPay work?

MoonPay is a crypto payment infrastructure that offers crypto users an on-and-off ramp service for converting between fiat currencies and cryptocurrencies.

Founded in 2019 by Ivan Soto-Wright and Victor Faramond, MoonPay now has processed more than $2 billion in transaction volume for more than 5 million users since its founding back in 2019.

So, how does MoonPay work? To use MoonPay, simply visit buy.moonpay.com or go through one of MoonPay’s partnering crypto wallets.

Once there, you can simply 1) choose from the crypto you want to buy, 2) enter in how much you’d like to purchase, 3) enter in your crypto wallet address (double check to make sure that the crypto you’re buying is compatible with the wallet address you entered), 4) agree to the rate of exchange, and 5) click “Buy Now.”

Some of MoonPay’s competitors include Coinbase, FTX, Crypto.com, Binance, Wyre, BlockFi, Uniswap, and other platforms where you can buy and sell crypto.

How does MoonPay make money?

According to MoonPay, MoonPay has processed more than $2 billion in transaction volume for more than 5 million users since its founding back in 2019.

So how does MoonPay make money off of all these users and transaction volume?

Below is a breakdown of how much money MoonPay makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how MoonPay makes money in 2022

MoonPay has a revenue model that makes money in two (2) ways; from transaction fees (processing fees) and MoonPay Concierge fees.

#1. Transaction Fees (Processing Fees)

MoonPay makes most of its money from the transaction fees, or processing fees, they add to each transaction.

When users buy cryptocurrency using MoonPay, they will incur a transaction fee of 4.5% when using a debit card and or a 1% fee for bank transfers. And when selling cryptocurrency, users will absorb another 1% bank transfer fee.

As noted above, MoonPay has processed more than $2 billion in transaction volume for more than 5 million users since its founding back in 2019. Of which, they receive a percentage of 1% to 4.5% on all of it. Which you can see below.

How much are MoonPay fees?

  • MoonPay transaction fees are 4.5% for card payments and 1% for bank transfers (minimum of $3.99/€3.99/£3.99 or currency equivalent)
MoonPay app | MoonPay Business Model | How Does MoonPay Make Money | How Does MoonPay Work
Source: MoonPay

Note: MoonPay handled over $2+ billion in transactional volume since being founded.

#2. MoonPay Concierge

The other way MoonPay makes its money is through a service they call MoonPay Concierge.

According to MoonPay, MoonPay Concierge is a service for “high net worth individuals to purchase NFTs” and is by referral only at this time. It is unclear how much MoonPay charges for these services.

MoonPay funding, net worth, and valuation

MoonPay’s Crunchbase profile shows MoonPay has raised $642 million over 3 rounds and has a valuation of $3.4 billion as of November 2021, per reports.

MoonPay profit and revenue

MoonPay has not released any official reports in regards to company earnings.

Note: Because MoonPay is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the MoonPay business and revenue model?

MoonPay makes money through a few revenue models that they combine within their company, they are:

  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

MoonPay subsidiaries, acquisitions, and exits

To date, BitPay has made a total of 4 investments.