MiCA and the Future of Crypto On-Ramps: Why Pay by Bank Is Replacing Cards

Crypto on-ramp services were long seen as a purely functional solution — simply another way for users to deposit funds. Today, however, their role is far broader. The on-ramp has become a strategic layer that directly impacts user experience, conversion rates, and cost structure, as well as a crypto platform’s ability to meet regulatory requirements.

With the introduction of MiCA (Markets in Crypto-Assets Regulation) in the EU, this layer is now under particular scrutiny. Crypto is entering a regulated phase in which the way fiat funds enter the ecosystem is just as important as the crypto offering itself.

What is now expected from a crypto on-ramp

The market has gradually established a new standard. For end users, entering the world of digital assets must be fast, intuitive, and as close as possible to the experience of a bank transfer. In practice, this means that a crypto deposit should feel like part of modern digital banking — not a separate, complex process.

In this context, the on-ramp now determines:

• whether a user reaches a successful deposit,

• how smooth their first experience will be,

• and whether the platform feels modern or outdated.

Why card-based models are starting to fall behind

Although cards are widely used, in a crypto context they increasingly become a constraint. The issue is not just cost, but the overall structure of card-based flows. At the moment when a user is ready to deposit, card payments often introduce additional checks, declines, and delays.

For PSPs and crypto platforms, this translates into:

• higher and less predictable fees,

• lower approval rates,

• exposure to chargebacks and fraud disputes,

• increased operational and compliance complexity.

As a result, cards are increasingly becoming the weakest link in the user journey.

Stablecoins are changing the logic of entry

At the same time, stablecoins are increasingly established as a digital equivalent of money rather than merely a trading instrument. They are used for payments, value storage, and operational balances. When the movement of funds within the crypto ecosystem is nearly instantaneous, it naturally raises the question of why the fiat entry point remains slow and complex.

This is precisely where card-based models begin to look like legacy infrastructure that no longer meets modern expectations.

MiCA and the role of the funding layer

MiCA introduces clear requirements for fund traceability, control over the source of fiat funds, and the operational resilience of crypto service providers. This means the funding layer can no longer be treated as a purely technical decision.

In a MiCA-regulated environment, card-based on-ramps:

• add additional intermediaries,

• complicate end-to-end traceability,

• increase compliance costs.

The “cards-first” model starts to look not only expensive, but also regulatorily inefficient.

Pay by Bank as a natural evolution

Against this backdrop, the Pay by Bank / IRIS Pay model, based on account-to-account payments and open banking, emerges as the logical next step. Funds flow directly from an identified bank account, with clear traceability and no chargeback risk. This results in higher success rates, better cost control, and significantly easier alignment with MiCA’s regulatory framework.

The next wave of crypto on-ramp growth will not be won by optimising card fees. It will be won by PSPs that rethink the funding layer and transition to Pay by Bank / IRIS Pay.

In a world where stablecoins behave like digital money, the on-ramp must behave like modern banking.