⏳ Onboarding is the real conversion bottleneck

Great products make first-time friction feel like an investment, not a chore. Consider Apple Pay. The first time takes a few extra steps - adding your card, verifying it with your bank, setting up Face ID - but after that, every payment is one tap. That setup builds trust once, and the convenience compounds every time after.

You see the same pattern elsewhere:

• Electric bikes on your trip to Europe: Standing awkwardly on the sidewalk trying to complete verification (just me?) but once you’re set, every ride after takes 10 seconds to get going.
• Food delivery apps: Setting up address, payment, and preferences for the first order, then it's "reorder in one tap”. 
• TSA PreCheck: Forms, fingerprints, and an in-person appointment just to skip a line, but once you’re approved, you breeze through security in under two minutes for the next five years.

The first use is an investment. The second is where the magic happens.

In crypto and fintech, the gap between the two is incredibly wide. The companies that win are the ones who help users understand why the upfront friction is worth it.

In this article, I’ll explore how effective onboarding transforms first-time setup into a foundation for repeat engagement, higher conversion, and long-term loyalty.

The onboarding tax

Let’s be honest about what first-time crypto users face:

• Account creation: Email, password, multi-step verification. 
• Security setup: Two-factor authentication and device trust prompts. 
• Identity verification: Document uploads and verification checks.
• Linking payment methods or bank accounts: Micro-deposit verification and card authorization.
• Accepting terms: Disclosures, risk acknowledgments, compliance checks.

It’s all necessary friction (designed to build trust, compliance, and personalization), but for many apps these early steps are still where most users drop off. Industry data shows that 25% of users abandon an app after one use if they can't understand its value immediately. If onboarding is confusing, 75% never return after the first week. In crypto specifically, 60-90% of new users drop out before completing their first transaction.

The biggest culprit? Time. Every extra minute in setup increases drop-offs by 40%. Rigid KYC and lengthy verification processes alone drive away 70% of potential users.

The returning user advantage

Now consider a user’s second session.

They open the app, they're either already logged in or they login using Face ID, they skip KYC (it's done), they skip 2FA setup (it's saved), and they go straight into the core experience.

We see the same pattern with Mesh-powered crypto payments. The first-time experience establishes trust by securely connecting a verified exchange account, confirming ownership, and capturing wallet preferences for future use. Once that’s done, everything accelerates. Returning users skip setup entirely so they can enjoy one-tap payments every time after.

Why this matters

For businesses, getting users to a second session has many long-term advantages. Returning users typically complete transactions twice as fast and convert at nearly double the rate. Every returning user delivers compounding value:

• Higher lifetime value: Returning users transact more frequently. They're comfortable, trusted, and integrated.
• Increased revenue per user: After onboarding, every subsequent interaction has near-zero marginal friction. Users spend more, try more features, and stick around longer.
• Better data and feedback loops: Onboarded users generate rich behavioral data. They deliver actionable feedback because they’re not rage-quitting after the third screen.
• Network effects: Users with connected accounts become advocates. They refer friends, post about successful transactions, and build trust signals.

None of this happens if users drop off before setup is complete. In that sense you can think of onboarding as an investment threshold: users who cross it become compounding assets, whereas users who don't are just acquisition costs with zero return.

Show them the future upfront

Here’s what separates good onboarding from great: showing users what’s waiting on the other side.

Most onboarding flows are all friction, no preview. Users slog through steps without knowing that the next time will take seconds.

The best products signal the transformation upfront. A clear message like “2-minute setup, then every payment is one tap” turns effort into payoff. 

In crypto, where trust is fragile and alternative options abound, this clarity matters even more. Users need to know that the pain is temporary and the convenience is permanent. The best products don’t try to remove friction—they make it meaningful:

1. They make the value visible before asking for the work. 

Also called “progressive onboarding”, the idea is to delay non-critical steps so users experience value before full setup (leading platforms even let users explore features or receive assets before requiring full verification).

2. They make the second experience magical.

This is where Mesh shines. Returning users skip setup entirely: one tap goes straight to confirmation. 

3. They communicate what's coming.

Users tolerate friction when they know why it matters and how long it will take. Small cues like “Verification takes under 2 minutes” turn effort into anticipation.

Closing thoughts

As crypto edges toward mainstream adoption, onboarding remains the gatekeeper between interest and action. But the goal shouldn’t be to remove friction—it should be to make it feel like an investment. Every extra step should earn its place by building trust. When users understand the why behind setup, that’s where great products build lasting momentum.

Want to see how Mesh powers instant repeat payments and deposits? 

Check out our Client Managed Tokens Guide or book a demo.

Want more like this? Subscribe to Mesh Weekly.