The cryptocurrency community is always looking for new ways to use decentralized finance (DeFi) technologies to bridge the gap between conventional finance and fiat currencies. A primary means through which consumers can transition between these two financial ecosystems is through the use of crypto on-ramp services.

Also, if there are complications throughout the transaction process, there is a chance that up to 90 percent of customers will leave their purchases in the middle of the flow.

The research looked at nine of the most popular fiat-to-cryptocurrency exchanges, including Coinify, MoonPay, Transak, and Wyre, among others.

According to statistics, the performance of different access paths varies greatly; however, the position of the user is one of the main elements to consider. Transaction success rates in Europe were among the highest in the world, while those in Africa and South America were among the lowest.

Payment methods, fiat currency converted to cryptocurrency, and available trading pairs are some of the other elements that influenced transactions on cryptocurrency exchanges. Using bank transfers as a means of payment has been shown to have higher success rates in transaction completion rates, reaching almost 100% success in two separate cases.

Furthermore, the value of the transaction was an important factor in determining whether it was successful or not. Transactions ranging from $0 to $26 had an authorization fee of 66 percent, while those with a value of more than $5,000 had an authorization fee of 19 percent on average.

The study concluded that one of the possible solutions to the problems with transaction authorization could be for token service providers to provide as comprehensive a selection as they can manage of aggregate accesses through a single interface. Another solution is to dynamically route transactions to provide consumers with the most appropriate solution for their circumstances.

Paolo Ardoino, Tether’s CTO, made this statement not long ago at the World Economic Forum. He referred to the platform’s stablecoin Tether (USDT) as an on-ramp for Bitcoin (BTC).

The Hong Kong Monetary Authority has identified its soon-to-be-launched retail central bank digital money as a potential entry point into the field of decentralized finance.