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Faster Onboarding and Higher Conversion with Magic and Sardine

NFTs are here to stay, but users and NFT creators often suffer from poor onboarding, UX, and payment options. This creates missed opportunities to buy a unique item for buyers and for sellers, a loss of conversion, and monetization for dApps.

Magic and Sardine have partnered to overcome both of these issues to improve conversion rates. Combining Magic’s rapid and secure onboarding with the instant account funding of Sardine’s NFT checkout.

Collectors can create a wallet and buy an NFT instantly. Merchants can get near 98% conversion rates, and the security that Sardine will reduce fraud.

NFTs are here to stay.

Non Fungible Tokens (NFTs) continue to succeed with brands and creators, even after the 2021 bubble burst. In the first six months of 2022, brands like Nike, Adidas, and Tiffany collectively generated over $1.3bn in NFT revenue (with more than 50% of Nike revenue being secondary sales). NFT marketplaces generate an average of $16m in revenue per day for independent creators and NFT collections.

Decentralized Finance wallets (or DeFi wallets) are critical to the success of NFTs. Users collect NFTs and can take advantage of the unique properties of DeFi wallets, like interacting with 3rd party games, apps, or marketplaces.

But brands creating NFTs still struggle with Crypto’s UX problem.

The standard wallet security model is confusing for new users.

Often, just creating a web3 wallet is a test many users fail to pass, and if they do, to secure their account now, they have to manage a 16-word secure passphrase. Not only is this complicated, but it also involves several steps unfamiliar to users who often just want to buy an NFT immediately.

Time speeds up during an NFT drop as users fight to secure a rare, unique NFT, and in this scramble, every second counts when trying to secure an exclusive piece. If the user is battling wallet registration or security, they may lose the opportunity they had waited for.

Often NFT drops don’t happen on a marketplace or site where a user may already have credentials and login, but on a brand or creates own launch site. Users must connect and manage their wallets at the launch site to the NFTs contract. This can create delays, especially if a user doesn’t have a compatible wallet (e.g., if the NFT is on a chain that the user’s wallet does not support).

Brands and NFT merchants can’t afford delays and poor user experiences that can damage the community and create a high abandonment rate.

Magic has an alternative to instantly create secure wallets.

Magic help customers enable seamless NFT purchases by instantly creating user wallets without passwords or seed phrases. Users can leverage their existing credentials (e.g., Email, SMS, or Social Login in Web2 or web3 wallet if they have one) to quickly get in on an NFT drop. Magic works regardless of chain, so users do not have to create a new wallet to participate. Magic also supports large-scale drop events such as Matrix and Discovery Channel Shark Week on Nifty’s.

For brands and creators, this means the NFT drop is available to more users, and their chances of a collection selling out rapidly and gaining community momentum and excitement increase.

But there’s another requirement for a smooth NFT drop.

Don’t let unfunded wallets create delays.

Higher conversion also requires well-funded wallets. But if a user has never used that wallet before or is new to a particular chain, how can they quickly fund a new wallet?

Traditional on-ramps into NFT wallets may involve a consumer buying a compatible Crypto asset at their exchange, then sending it to their new wallet. Depending on the network, this can take minutes to hours during high congestion.

Some NFT brands and creators direct on-ramps into major wallets, but often these rely on debit card or bank account funding which has a low spending limit and a high chance of being declined. This is because, unfortunately, the risk of fraud when funding a brand new Crypto wallet for NFT purchases is extremely high.

Users want their NFT now but have a 50+% chance of being declined and may be limited to a maximum of $500, meaning they miss out on the rarest NFT.

Sardine instant settlement works via bank transfer or card, with higher approval rates and higher limits.

That means more customers and more NFT sales when customers want them.

Sardine’s instant NFT checkout has supported clients like Autograph during their exclusive Tom Brady drop and allowed users to instantly fund their wallets with higher limits and approval rates.

For users, this means instead of being frustrated by declines when trying to fund the wallet; they get the NFT they want. NFT issuers can improve their approval rates to 90+% (and in many cases 98%+), building on Sardine’s unique fraud prevention and instant funding expertise. Sardine can also provide much higher limits, allowing users to buy more exclusive and limited edition NFTs from a collection.

You can streamline your onboarding and wallet funding today with Magic and Sardine.

Click here to learn more.

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About the author
Simon Taylor
Head of Strategy and Content