- Infini Union exits crypto card business due to compliance costs and low margins
- Off-chain settlements and inefficiencies hindered scalability of Infini’s card services
- Company shifts to digital wealth products with 5% yield and lower operational strain
In a decisive pivot, China-based Infini Union has announced the shutdown of its popular crypto card services. This marks a significant departure from its earlier focus on crypto-based consumer payments. The company attributed the move to unsustainable compliance costs, tight profit margins, and high operational strain.
Notably, these services consumed nearly all of Infini’s resources but yielded little return. The strategic realignment aims to steer the company toward more stable and scalable ventures, particularly within digital wealth management and asset growth solutions.
Compliance Burdens and Operational Complexity Drive Exit
Infini Union’s decision to withdraw from the crypto card space stems from the growing regulatory and technical burdens in the sector. The company operated several types of cards, including the Global Card, Lite Card, and Tech Card.
However, running these products required extensive off-chain settlements. These processes often resulted in slow transactions, high fees, and a diminished user experience when compared to traditional Web2 systems. Consequently, the card business faced growing inefficiencies that clashed with Infini’s long-term vision for seamless Web3 payments.
Besides the operational hurdles, compliance costs also proved overwhelming. Staying in line with varying international regulations made the business model financially unviable. Infini executives acknowledged that maintaining this service drained the firm’s capacity, leaving little room for innovation or profitability.
Strategic Pivot to Asset and Wealth Management
Infini Union now aims to reallocate its efforts to financial services that promise higher returns and lower overhead. The company plans to expand its presence in the wealth and asset management space, offering users more consistent and attractive investment options. Currently, their digital wealth products offer an annualized return of approximately 5%, positioning them competitively in a crowded fintech market.
Moreover, the company has ensured that essential financial functions such as deposits, withdrawals, and yield-generating accounts remain fully operational. By focusing on scalable and regulated financial services, Infini seeks to create a sustainable business model that aligns with emerging Web3 standards.
