Deep Reflections Behind Infini's C-end U Card Business Shutdown

Recently, the crypto startup Infini announced the suspension of all card services, attracting widespread attention in the industry. This decision reflects the many challenges faced by the U card industry.

Strategic Retreat

Christine, the co-founder of Infini, stated that the shutdown of the U Card business is mainly due to high compliance costs, thin profits, and significant operational pressure. The company will focus on wealth management and asset management in the future, as well as explore decentralized payment solutions.

Christine admitted that this decision was made after careful consideration. Although Infini has accumulated a considerable user base in the Chinese-speaking region, the team believes that this is not a sustainable development path in the long term.

In the official announcement, Infini detailed the compensation plan for users, including automatic refunds of card issuance fees and ensuring the safe arrival of funds in transit, reflecting the team's sense of responsibility and business ethics.

Core Pain Points of the U Card Industry

Heavy cost structure

Christine pointed out that the U card business actually has no profit, only costs. These costs mainly include:

1. KYT and KYC Costs: Each transaction requires identity verification and risk monitoring.

2. Deck and bank fees: including fixed API fees, exchange rate conversion fees, etc.

3. Operating Costs: The operational complexity of the U Card is comparable to that of a cryptocurrency exchange, requiring the assurance of transaction security and the provision of real-time customer support.

4. Compliance Costs: Applying for payment licenses in different regions is costly, and each user verification incurs a fee.

The Misalignment of Cryptographic Vision and Reality

Compared to the ideal "bridge from the crypto world to real-world payments", the U Card reveals structural limitations. Christine believes that if one wants to profit from the U Card, they can only increase the fees, which goes against the team's original intention and may also cause dissatisfaction among users.

The more realistic issue is that the U card user experience is far inferior to that of Web 2.0 products. Some fees, although not set by Infini, are ultimately borne by the users, leading to misunderstandings and dissatisfaction.

Future Outlook of Cryptocurrency Payments

Christine believes that the current crypto payment sector has not evolved along the lines of the crypto trend. The practice of converting stablecoins into fiat currency with U Card is, in fact, a "regression" for the industry.

She emphasized that the ultimate goal of crypto payments should be to allow users to make payments directly using stablecoins, rather than relying on fiat payment channels. It will be the "iPhone moment" for crypto payments when ordinary users can directly pay and purchase things with USDT and USDC.

Future Plans of Infini

1. Strengthen the wealth management product line: Provide more diversified and secure wealth management products to meet the needs of different users.

2. Explore decentralized cryptocurrency payments: Committed to developing solutions that allow users to pay directly with stablecoins.

Christine stated that Infini will move forward with the long-term mindset of an entrepreneur, firmly optimistic about the development prospects of crypto payments. The team will continue to accumulate experience, promote technological innovation and business expansion, and strive to create more efficient and convenient payment solutions.