The Challenge

Client A was a fast-scaling e-commerce merchant operating in the crypto vertical, having launched just six months prior. Their growth trajectory was impressive — from £25,000 in revenue during the first month to £350,000 by month six — driven by strong demand and efficient product sourcing. However, as volumes increased, so did the cost of payments. Transaction fees, cross-border charges, and settlement delays were eroding margins, particularly given the high-frequency, low-ticket nature of many crypto-related purchases. Despite strong top-line growth, profitability was under pressure, and the merchant lacked visibility into how their payment structure was impacting the bottom line.

Quadropay's Strategic Solution

Quadropay’s consultants engaged with Client A to conduct a granular analysis of their payment flows, fee structures, and merchant discount rates across various channels and geographies. Client A switched to Quadropays gateway and acquirer options and by benchmarking against industry standards and factoring in the unique risk and compliance considerations of crypto transactions, Quadropay identified inefficiencies in the pricing model — particularly around micro-transactions and EU cross-border volumes.

The team proposed a strategic shift: implementing a minimum fee threshold for purchases to offset fixed transaction costs and recalibrating the pricing model to better reflect the merchant’s risk profile and volume behavior. This change not only improved unit economics but also allowed for more predictable margin management. In parallel, Quadropay advised a reorientation of the marketing strategy — focusing on the EU marketplace, where payment costs could be optimized through local acquiring and tailored fee structures.

The Outcome

The impact was immediate and measurable. Profit margins improved as the new minimum fee structure reduced the drag from low-value transactions. The EU-focused strategy unlocked more favourable pricing terms and settlement efficiencies, further enhancing profitability. Client A gained newfound clarity on their payment economics, enabling smarter decisions around pricing, customer acquisition, and product bundling.