In a combination of two respective Web2 and Web3 powerhouses, e-commerce giant Shopify has announced its integration of crypto payments solution Solana Pay.
For context, Solana Pay is an open source, decentralised payments protocol built on the Solana network, whilst Shopify is a leading e-commerce platform for processing and managing online payments.
When it comes to the latter, there’s a likelihood that you’ve already come across it, as recent stats suggest that Shopify facilitates around 10% of all e-commerce transactions in the US, which equates to a whopping $444 billion.
With the integration of Solana Pay, Shopify’s 1.75+ million global merchants will be able to offer a fresh new alternative at the online checkouts, wherein customers can enjoy lower fees and even speedier payment processes.
For the time being, Solana-compatible USDC ($USDC) will be the only crypto on offer to online shoppers, however Solana Labs plans to add other altcoins in the coming months - including its native $SOL and meme coin $BONK.
In going back to the benefits on offer, Solana Labs official Josh Fried has stated that Solana Pay will be able to facilitate vastly-reduced transaction charges in comparison to traditional credit card fees. As of now, the network’s average charge per transaction is recorded to be around $0.00025, whilst credit card processing fees typically range from 1.5%-3.5%.
With Solana Pay and the introduction of Solana-compatible USDC, Shopify merchants will also be able to utilise enhanced real-time access to their funds, as well as methods for managing capital, liquidity, and liability protection.
Given the 1.75+ million merchants able to leverage Solana Pay, the integration could mark a transformative moment within the ‘mainstreaming’ of crypto payments. This is because these stores are said to cater to a worldwide consumer base that exceeds 650 million.
Perhaps just as excitingly, it also opens the door for companies to innovative new Web3-related marketing ploys, which could include things like token-gated experiences or NFT loyalty schemes. To do so, Solana Pay has included a suite of blockchain-based e-commerce tools within the integration.
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This article is intended for educational purposes and is not financial advice