Why Do Small Crypto Wallets Struggle to Convert Users into Revenue?

During the TOKEN2049 event in Singapore, Yana Mar, Head of B2B and Partnerships at ChangeNOW, highlighted a recurring challenge in the world of small crypto wallets: the difficulty in converting active users into revenue. The absence of essential features, such as the option for direct swaps within apps, leads users to seek alternatives on other platforms, taking with them transaction volume—and, consequently, the fees that would sustain these smaller wallets.

The user experience challenge for smaller wallets

Crypto wallets are key components for the adoption of digital assets, allowing users to store, receive, and send cryptocurrencies. However, small wallets often fall short in terms of user experience, especially when compared to major market players. According to experts like Yana Mar, the lack of a swap button or integration with exchange services within the app causes users to stop using it, opting to complete transactions elsewhere.

This limitation is not just a matter of convenience. Frustrated users not only abandon the app, but also transfer their purchasing power and associated fees to better-structured competitors. This creates a cycle in which small wallets struggle to retain value and grow.

Why is integrating swaps so complex?

Adding swap functionality (direct crypto asset exchanges) requires technical partnerships, integration with liquidity providers, and regulatory compliance—challenges that small teams often cannot quickly overcome. Additionally, integrating third-party solutions can increase operational costs and require constant updates to ensure security and efficiency, which are critical in the crypto market where attacks and failures can be costly.

For large wallets and exchanges, these investments are spread across a broad user base, making it feasible to offer multiple services. For small wallets, however, the return does not always justify the initial effort, resulting in less innovation and a less seamless experience for the end user.

Market impact and alternatives for small players

This scenario contributes to market concentration around major platforms, which offer integrated services and capture most of the fee revenue. Users seek convenience, and the lack of features pushes emerging wallets even further away from relevant transaction volumes. On the other hand, solutions like integrations via swap aggregator APIs or B2B partnerships can be ways for small wallets to improve their offerings without having to build the entire infrastructure from scratch.

The crypto wallet market remains competitive and dynamic. Industry data shows that mobile wallet adoption is growing globally, but the market share is concentrated among the top 10. For investors and developers, the lesson is clear: investing in user experience and service integration is essential to capture revenue and maintain relevance against increasingly complete competitors.

What to watch for in the future of crypto wallets?

As the crypto world matures, competitive pressure is expected to force even small players to innovate, whether through partnerships or by adopting white-label swap and DeFi solutions. The success of these wallets will depend on their ability to offer a streamlined, secure, and comprehensive experience—factors that attract and retain users, as well as ensure the revenue needed for business sustainability.

Want to trade crypto with AI support? Check out Zayion AI, Bianchi Capital’s trading assistant.

With information from BeInCrypto Brazil (September 2026).

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Alexandre Bianchi

Fundador da Bianchi Capital e do Zayion AI. ~10 anos no mercado de ativos digitais, autor de referência e presença na mídia.

Autor de “O Manual do Criptoinvestidor”Presença na RedeTVPublicado no Terra+150 mil seguidores

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