E-commerce giant Shopify untapped the potential of crypto market in payments with the latest announcement on the integration of Solana Pay for Solana-compatible USD stablecoins like the USDC, offered by Circle. Considering the massive share of e-commerce market the platform controls, this could likely be the beginning of a massive shift towards crypto payments.
What Is Solana Pay?
Solana Pay is a decentralized payments protocol built by Solana Labs. With this, millions of businesses will have it as an approved app integration on Shopify. The app is built for instant transactions and near-zero gas fees. This partnership enables real time payments through blockchain without any costs for millions of merchants. With the blockchain based payments, the merchants would have the advantage of having ability to handle token based rewards and seamless across countries.
How Much Cost Will Shopify Users Save
Patrick Hansen, the Director of European Union’s Strategy and Policy at Circle, said users would be able to save a great deal in average cost per transaction if done using Solana Pay and USDC. He revealed that the USDC transactions would cost a meagre $0.00025 per order, as against the 1.5-2.5% in credit card fees per order. This could be a massive improvement in terms of cost cutting for the e-commerce platform, which controls about 10% of the total online shopping activity in the United States.
The e-commerce platform is one of the bigger names to have jumped into the crypto bandwagon in recent times. On the institutional front, financial companies like Blackrock and Fidelity have shown interest in offering Bitcoin based products via spot ETF filings with the U.S. Securities and Exchange Commission (SEC).
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