The fast growth of cryptocurrencies has brought a lot of modern apps that are designed to make the use of cryptos easier. The most important of these apps are crypto wallets, which are digital wallets for cryptocurrencies. These wallets are competing against traditional payment apps like PayPal, Venmo, and Revolut. But can they really compete against these apps? Well, the answer is not short, which is why we have written this article. Next, we will compare crypto wallets with traditional payment apps by going through the most common factors users consider. At the end we will point out areas in which crypto wallets shine.
Fees and Cost of Use
The most important factor for many users when choosing any payment app is the cost of transactions. Traditional apps usually earn money through different transaction fees, currency conversion charges, and monthly subscriptions. For example, PayPal usually takes a few percentages from business transactions. Similarly, some apps usually charge a few percentages for converting currency.
This is not the same with crypto wallets. They usually don’t have similar platform-based charges. However, this does not mean that the transactions are free. Users pay network fees, which are usually transparent and differ by blockchain. For example, some chains like Solana and EOS offer low fees that make transactions cheap, while Ethereum might be expensive during periods of congestion. While the actual wallet apps themselves don’t usually add any extra fees on top, users should always check the app’s fee disclosures to be sure.
While there of course are exceptions, many users find that crypto wallets offer a more straightforward and transparent fee structure. For example, Best Wallet Apple Store shows its low transaction costs and fees clearly, which makes it easy for users to proceed with the wallet. On top of that, this kind of transparent fee structure enhances the user experience and helps the app appear safer and more trustworthy.
Transaction Speed and Reliability
Another important factor is speed. Since nobody wants to wait minutes or even hours for a transaction to go through, speed is a must. Most traditional apps like Zelle and Venmo offer near-instant transactions within their apps. However, back-end banking transfers can still take days, since they require different middlemen. This goes on especially for cross-border transactions and for transactions that involve multiple currencies.
For cryptos, the speed differs a lot depending on the blockchain the specific crypto supports. For example, Bitcoin transactions can take 10 minutes or longer, while newer blockchains like Solana can confirm transactions in just a few seconds. Additionally, network congestion during the transaction can also slow things down. Whatever the case and situation are, crypto transactions are usually confirmed within minutes.
Despite development and recent improvements, transaction reliability is one area where crypto wallets still have room to grow. Sometimes occasional delays, pending confirmations, or failed transactions caused by low fees can occur. While these can confuse the users, the wallets are actively improving their feedback systems, such as confirmation notifications or dynamic fee suggestions, to improve transaction reliability overall.
Interface Design and Usability
Traditional payment apps have been here for years, which is why their interfaces are usually polished to near perfection. For example, Cash App, which, according to statistics, had approximately 57 million monthly active users in 2024, offers seamless bank linking and auto-filled contacts that make transactions feel effortless and enhance user experience. Traditional payment apps are designed to be familiar and simple, even for first-timers and beginners.
Crypto wallets, on the other hand, used to be so complicated that only the most tech-savvy people could use them. In the past, users had to know complicated terms like “seed phrase” and “gas limit” in order to use the wallets. However, things have changed significantly. Nowadays wallets are designed to be beginner-friendly by offering tutorials and guides. They also use modern technologies and features like fingerprint login and self-explanatory interactive dashboards.
While the two are now similar in this regard, the balance between simplicity and security still sets them apart. In crypto wallets, users truly are in control of their funds. This is effective but also risky. While traditional apps offer customer support and account recovery options, crypto wallets must find new ways to combine ease of use with robust self-custody features. Many are getting closer, and the future seems bright.
Global Use and Accessibility
When it comes to global use, crypto wallets are the go-to options. Traditional payment apps are usually geographically limited thanks to regulations, banking partnerships, and compliance checks. For example, Venmo is only available in the U.S., and its terms and conditions explicitly prohibit accessing its services from outside the U.S.
Crypto wallets, on the other hand, can be accessed by anyone from anywhere. The only thing needed is an internet connection. For most cases, there is no need for a local bank or even official identification. Because of this, cryptos are incredibly useful and popular in countries with underdeveloped financial systems or heavy currency restrictions. For example, in Nigeria and Argentina, crypto wallets are becoming more popular each day.
While cryptos have the upper hand when it comes to global use, accessibility is also important. Internet reliability, local laws, and financial situation all play roles in this matter. Crypto wallets are still not fully ready to replace traditional apps in many regions, since they are in need of legal clarity and better infrastructure.
Where Crypto Wallets Shine
Crypto wallets also shine in areas where traditional apps can’t even compete. For example, they support programmable transactions via smart contracts, which are digital contracts that are automatically executed when terms and conditions are met. With them, users can automate their payments, stake assets, or interact with decentralized apps directly. This is revolutionary for the finance world, since it possesses a lot of opportunities.
They also offer greater privacy and autonomy. When using a crypto wallet, users hold private keys for their wallets. This means that there are no centralized services that can freeze their accounts or block their transactions. While this kind of control might sound risky, it appeals to privacy-conscious users and those in regions where financial censorship is a concern.
And lastly, crypto wallets are multi-asset platforms. In addition to cryptocurrencies, users can store NFTs, stablecoins, and governance tokens, all in one place. Some wallets even let users browse decentralized marketplaces or access yield-earning features, transforming them into powerful financial dashboards. It’s this multifunctionality that positions crypto wallets as more than just an alternative.
