Original | Odaily Planet Daily (@OdailyChina)
On March 12, the crypto payment company Mesh (full name Mesh Connect, Inc.) announced the completion of an $82 million Series B financing round, led by the well-known venture capital firm Paradigm, with participation from several heavyweight institutions including ConsenSys, QuantumLight, and Yolo Investments. Notably, most of this round of financing was settled in PayPal's PYUSD stablecoin, highlighting the trend of integration between traditional fintech and the crypto ecosystem.
This is not only an important milestone in Mesh's development journey but also reflects the recognition of top capital in the blockchain industry regarding the prospects of the crypto payment sector. Since its establishment in 2020, Mesh has raised over $104 million in total financing, aiming to promote the adoption of digital asset payments through a network connecting crypto wallets, exchanges, and payment service providers.
Business Model
Mesh is a crypto payment company founded in 2020 and headquartered in San Francisco, USA. Its core business model revolves around "embedded finance" and "blockchain payments," aiming to connect traditional finance with the crypto ecosystem through technological innovation. Here is a detailed breakdown of its business model:
1. Core Product: Payment Settlement Network
Mesh provides a payment settlement network that allows users to make payments using various crypto assets (such as BTC, ETH, SOL), while merchants can choose to receive payments in stablecoins (such as USDC, PYUSD, RLUSD). This design addresses the issues of high volatility of crypto assets and low payment efficiency, providing flexibility for both users and merchants.
Users pay directly from their crypto wallets through Mesh's network, with the system processing transactions in real-time, allowing merchants to receive stablecoins and avoid the risk of price fluctuations. Mesh does not hold user assets but facilitates direct wallet-to-wallet transfers, emphasizing security and decentralization while complying with SOC II security standards, enhancing compliance and trust.
2. Embedded Finance Operating System
Mesh has developed an embedded finance operating system that has integrated with over 300 fintech platforms (including major crypto exchanges and wallets). This system serves not only as a payment tool but also provides functions such as digital asset transfer and account aggregation.
Through a unified API and SDK (supporting platforms like Web, iOS, Android, etc.), Mesh offers plug-and-play solutions to partners, lowering the technical access threshold. Users can seamlessly recharge, pay, and convert crypto assets within partner platforms without leaving the original interface, enhancing user experience.
3. Revenue Sources
Although the specific charging model has not been disclosed, based on industry practices, Mesh may profit through the following methods:
Transaction fees: Charging a certain percentage fee for each payment or asset conversion.
Platform integration fees: Charging subscription fees or usage-based fees to partnered fintech platforms.
Value-added services: Offering additional features such as data analysis and compliance support, charging enterprise clients.
Mesh emphasizes the security and compliance of its technical architecture, adhering to SOC II standards (established by the American Institute of Certified Public Accountants to assess data protection capabilities) and has passed multiple independent security audits. This compliance-focused strategy gives it a competitive advantage in the increasingly regulated crypto industry.
Market Positioning
Mesh's market positioning in the crypto payment sector can be summarized as "the connecting layer of the crypto ecosystem," distinguishing itself from single payment service providers by focusing on ecosystem integration and global expansion.
1. Target Market: Dual-Driven by Enterprises and Consumers
Enterprise side: Mesh targets fintech companies, crypto exchanges, wallet service providers, and merchants, offering embedded payment solutions to help these platforms quickly expand their crypto payment capabilities. For example, merchants can accept various crypto assets through Mesh while settling in stablecoins to avoid market risks.
Consumer side: Providing convenient payment channels for users holding crypto assets, supporting the daily use of mainstream cryptocurrencies like BTC and ETH, promoting the practicality of digital assets.
2. Competitive Differentiation: A Connecting Layer Rather Than a Single Service Provider
CEO Bam Azizi stated that he hopes to make crypto payments as simple as credit cards. If this vision is realized, it could open new pathways for the practicality of cryptocurrencies. Unlike direct-to-merchant crypto payment service providers like BitPay and Coinbase Commerce, Mesh acts more like an infrastructure provider. Its advantages include:
Extensive integration: Connected to over 300 platforms, covering exchanges, wallets, and custodial services, forming a vast ecological network.
Stablecoin support: Supporting various stablecoins (such as PYUSD, USDC), providing merchants with diverse options and reducing volatility risks.
Embedded experience: By embedding SDKs and APIs into partner platforms, users can complete payments without switching to external interfaces, optimizing the usage process.
Of course, Mesh's global expansion plans demonstrate its market ambitions but face multiple challenges:
Technical stability and low costs: Ensuring efficient and stable network operation.
Merchant acceptance: Encouraging more merchants to adopt stablecoin settlements.
Regulatory adaptability: Responding to compliance requirements in different regions.
3. Industry Positioning: Promoter of Stablecoin Payments
Mesh positions stablecoins as the core of its business, seizing the rapidly growing trend in the stablecoin market (with the global stablecoin market expected to exceed $200 billion by 2025). Its deep collaboration with PayPal (with Series B financing settled in PYUSD) indicates that Mesh aims to bridge traditional finance and crypto payments, attempting to break down barriers between the two through stablecoins.
Leadership Team: A Combination of Technology and Finance
Mesh's leadership team consists of professionals with experience in fintech and blockchain.
Bam Azizi, Founder and CEO. Bam Azizi has a solid background in fintech, particularly in the development of automated systems. He previously worked at Carta, where he was responsible for designing and implementing automated solutions, accumulating extensive industry experience and technical capabilities.
Arjun Mukherjee, Chief Technology Officer. Arjun Mukherjee is a prominent technical expert in the Web3 and blockchain technology fields. He has held significant positions at Coinbase and Goldman Sachs, showcasing his strength in the intersection of fintech and traditional finance. Additionally, he is an angel investor and advisor for several fintech and Web3 startups. In 2024, he spoke at the Sui Basecamp event, further highlighting his technical leadership in the industry.
Other team members mostly come from fintech backgrounds, and while the specific size has not been disclosed, the company has nearly 9,000 followers on LinkedIn.
Financing History
Series A Financing (September 2023): $22 million, led by Money Forward, with participation from Galaxy, Samsung Next, etc., primarily used to enhance platform integration capabilities.
Series B Financing (March 2025): $82 million, led by Paradigm, supported by institutions like ConsenSys, with funds intended for global expansion and technological research and development.
Although Mesh's specific valuation has not been disclosed, the scale of the Series B financing and the lineup of investors indicate a significant enhancement of its market position. Particularly, the application of PYUSD as the main settlement method further deepens Mesh's connection with traditional fintech companies like PayPal.
Conclusion
The capital injection represented by Paradigm and ConsenSys not only provides financial support to Mesh but also casts a vote of confidence in its development direction.
As a company connecting crypto assets with payment scenarios, Mesh's exploration reflects the trend of blockchain technology shifting from speculation to practicality. Whether stablecoin payments can become a mainstream breakthrough for cryptocurrencies remains to be seen, but Mesh's practices undoubtedly provide an important sample for industry observation.
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