2025 has set the stage for Web3 quietly becoming the plumbing of everyday finance. The shift isn't happening on trading apps, but at markets, restaurants, street vendors, and digital storefronts – places where consumers aren't thinking "blockchain" at all.
From Uptop's commerce rails, and the Urbanspace x Avalanche USDC pilot, to the Avalanche Card and Wyoming's FRNT stablecoin program, a clear pattern is forming: the next generation of payments will settle onchain, even if the user never sees the chain.
This piece kicks off a deeper series exploring that stack – what's actually under the hood, why it works, and how developers can build on it.
The Modern Web3 Payment Stack
Most Web2 payment apps disguise a decades-old system made of layers of intermediaries: processors, gateways, issuers, acquirers, and clearinghouses. Web3 payments replace much of that with a programmable settlement layer.
Here's what that stack looks like when built on Avalanche:
App Layer
(e.g., Uptop, Urbanspace, AVAX Card UI)
This is the user-facing surface where payments feel like any Web2 app – simple checkouts, clean UI, and no friction.
Wallet Abstraction Layer
(e.g., Core SDK, embedded wallets)
This layer handles all the behind-the-scenes wallet magic: auto-generated accounts, seamless key management, and user flows that never expose seed phrases. Developers can integrate embedded wallets through providers like:
If you want a walkthrough, here's a step-by-step guide on using Privy for embedded wallets on L1s.
Transaction Orchestration
(e.g., meta-tx, relayers, gas abstraction)
This layer manages the mechanics of sending onchain transactions without exposing users to gas fees, signatures, or blockchain UX. Toolkits for gasless flows include:
Settlement Layer
(e.g., C-Chain: USDC, FRNT, reward tokens)
This layer handles real settlement, moving stablecoins like USDC and FRNT onchain with fast, deterministic finality. Avalanche integrates with Circle's USDC stack, including CCTP and smart wallet support.
Issuer / Compliance Infrastructure
(e.g., Wyoming stablecoin trust, KYC/AML routing)
This layer manages regulatory requirements—KYC/AML, identity checks, and compliant stablecoins like USDC and FRNT. It plugs into the orchestration layer so real-world payments stay compliant without friction.
Merchant Integration Layer
(e.g., APIs, POS connectors, reconciliation)
This is where blockchain settlement connects to merchant systems through APIs, POS integrations, and automated reconciliation—letting businesses accept onchain payments without touching crypto infra.
Each layer replaces one or more TradFi intermediaries, which is why these apps feel faster, cheaper, and more programmable.
Driving Payments Through Embedded Web3 Rails: The Pattern Behind Modern Web3 Commerce
You can substitute a fintech API, a state-issued stablecoin, a marketplace wallet system, an embedded payments SDK—it's the same pattern.
Embedded Web3 rails = the orchestration layer that abstracts blockchain into a usable payment experience.
This layer typically handles:
- User identity and wallet linkage
- Gas abstraction or relaying
- Funding and settlement flows
- Stablecoin handling (e.g., USDC, FRNT)
- Merchant reconciliation and reporting
- Compliance routing
Think of it like Stripe's job in Web2, but programmable at the protocol layer.
Case Studies: The Infra Behind "Invisible Web3"
Urbanspace Markets: Gasless USDC Payments in NYC
The Urbanspace pilot shows how thousands of non-crypto-native users can transact onchain without knowing it.
Infra Highlights
- Auto-generated embedded wallets via Core SDK
- Meta-transactions so users pay no gas
- USDC on Avalanche for instant, stable settlement
- Smart contract loyalty that behaves like traditional rewards but remains fully portable
What looks like tap-to-pay is actually: user signs meta tx → relayer broadcasts on C-Chain → merchant receives USDC in seconds.
This playbook will power many future real-world activations.
Uptop: The Web3 Commerce Stack for Marketplaces
Uptop takes the same primitives and packages them for e-commerce and marketplace builders.
Infra Highlights
- Universal embedded wallets for buyers and sellers
- Platform-level stablecoin treasury tools
- Programmable payouts (e.g., release on delivery events)
- Settlement logic encoded onchain instead of in spreadsheets
Uptop effectively operates as an embedded Web3 rail for marketplaces.
Avalanche Card: Turning Stablecoins Into Real-World Spend
The Avalanche Card extends the same payment stack into a familiar form—credit cards—but they settle via stablecoins underneath.
Infra Highlights
- Card processor connections to abstracted fiat endpoints
- Stablecoin funding on C-Chain (USDC today, FRNT tomorrow)
- Real-time balance checks via embedded wallet infra
- API hooks for building programmable card apps
For developers, stablecoin balances behave like programmable bank accounts.
Wyoming Stablecoin (FRNT): State-Level Settlement Rails
Wyoming's FRNT (Finality-Resilient Network Token) is a state-regulated onchain settlement asset built for public financial infrastructure.
Why this matters for developers
- Government-grade KYC and compliance baked in
- Onchain mint/burn events compatible with existing dApps
- Interoperable with USDC
- Potential for instant payroll, benefits distribution, or B2B settlement
FRNT is effectively a public-sector payment rail that plugs directly into Avalanche fintech stacks.
The Bottom Line
Stablecoin payments are no longer experimental—they're quietly becoming part of everyday financial infrastructure. From NYC holiday markets to state-backed digital cash programs, we're watching a new payment stack emerge in real time.
Consumers may never see the blockchain. Developers, however, now have unprecedented control over how money moves.
In Part 2: we'll break down the invisible machinery powering these experiences—embedded wallets, meta-transactions, relayers, and the onchain settlement flows that make Web3 payments actually work.
Is this guide helpful?