Infini Terminates U Card Service: Strategic Optimization or a Reluctant Move?

On June 17, the crypto startup Infini announced the shutdown of all card services, attracting widespread attention in the industry.

Regarding this decision, Infini co-founder Christine admitted that it is a well-considered strategic adjustment. She stated that the shutdown of the U Card business is mainly due to high compliance costs, thin profits, and significant operational pressure. In the future, the company will focus on wealth management and asset management while exploring decentralized payment solutions.

Christine provided a detailed analysis of the two core challenges faced by the U-card business: uncontrolled costs and a malfunctioning business model.

In terms of costs, KYT and KYC, card group and bank fees, operational costs, and compliance costs have all put significant pressure on the company. Christine pointed out that the application for a payment license is the most expensive part.

Compared to the ideal of being a "bridge from the crypto world to real-world payments," the U Card reveals structural limitations in reality. Christine believes that the only way to make a profit from the U Card would be to increase transaction fees, which contradicts the team's original intention and could also lead to user dissatisfaction.

In contrast, some large trading platforms are still actively promoting U-card services. Christine's analysis suggests that these platforms are more likely to view the U-card as a "fund retention tool" rather than a main source of revenue. For Infini, which lacks a large trading business to back it up, the U-card has instead become a high burden with low returns.

Christine emphasized that the ultimate goal of crypto payments should be to enable users to make payments directly with stablecoins, rather than relying on fiat payment channels. She believes that when ordinary users can directly pay and purchase things with USDT and USDC, it will be the "iPhone moment" for crypto payments.

Despite the challenges on the entrepreneurial journey, the experiences over the past year have also provided the Infini team with valuable insights. Christine particularly emphasized the importance of reputation, believing that in the crypto industry, reputation is the most core asset.

Looking to the future, Infini will focus its development on two directions: first, strengthening the wealth management product line to establish a sustainable income base; second, continuously exploring truly decentralized crypto payment paths to enhance their feasibility in real-world applications.

Christine stated that Infini will always move forward with the posture of a long-term entrepreneur, firmly optimistic about the development prospects of crypto payments. Although the future is full of uncertainties, the direction that Infini insists on and the accumulated experience are gradually building a more sustainable innovation path, which may have a profound impact on the crypto payment industry.