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Shopify Partners with Solana Pay for USDC Payments

Shopify Partners with Solana Pay for USDC Payments

Source : Solana Pay

Shopify, the leading e-commerce platform that powers millions of businesses worldwide, has announced a new partnership with Solana Pay, a decentralized payment app built on the Solana blockchain. This partnership will enable Shopify merchants to accept payments in USDC, the second-largest stablecoin in the crypto market. In this article you will get to know about the partnership between Solana Pay and Shopify, Why Shopify is accepting payments in cryptocurrency ( specifically USDC ) and What effects could this partnership have on crypto adoption and prices.

What is Solana Pay?

Solana Pay is a payment app that allows users to send and receive payments in various cryptocurrencies, including USDC, on the Solana network. Solana is a fast and scalable layer 1 blockchain that can process over 50,000 transactions per second with low fees unlike Ethereum. Solana Pay leverages the speed and efficiency of Solana to provide a seamless and secure payment experience for both merchants and customers.

USDC on the other hand is a stablecoin that is pegged to the U.S. dollar and backed by fully reserved assets. USDC is issued by Circle, a leading fintech company that provides digital currency services and platforms. USDC is widely used in the crypto space for trading, lending, borrowing, and payments. USDC has a market capitalization of over $26 billion, according to CoinGecko.

Why Shopify Chose Solana Pay and USDC?

Shopify has been exploring various ways to integrate crypto payments into its platform, as it recognizes the growing demand and potential of this emerging technology. Shopify already supports other crypto payment options, such as Strike for Bitcoin lightning network payments, Coinbase Commerce, and Bitpay. However, Shopify chose Solana Pay and USDC for several reasons.

 

First, Solana Pay offers a “fee-free” payment option for merchants and customers, compared to credit card processing fees that can cost up to 3.5% per transaction. According to Solana Beach, transactions on Solana cost roughly 0.000005 SOL at writing time, worth fractions of a penny.

Second, Solana Pay features USDC as its initial integration, which is a stable and compliant stablecoin that is closely tied to the U.S. dollar. This makes it an attractive option for merchants and customers who want to avoid the volatility and regulatory uncertainty of other cryptocurrencies. However, Solana Pay plans to add more cryptocurrencies in the future, such as SOL, the native token of Solana, and BONK, a doge-themed meme coin.

Third, Solana Pay enables merchants to create innovative loyalty programs using crypto and NFTs. For example, merchants can reward customers with discounts or other perks for making repeat purchases through Solana Pay. They can also issue NFT loyalty tokens that represent unique digital collectibles or experiences.

Fourth, Solana Pay is also supported by other platforms and services in the crypto space, such as Circle, Phantom wallet, and Checkout.com. Solana Pay aims to become a leading payment app that connects users across different networks and platforms using crypto.

Which Shopify stores have started using Solana Pay?

Several crypto-focused teams and brands have already integrated Solana Pay into their Shopify storefronts. These include Helius, Mad Lads, and MonkeDAO. These teams are excited to offer their customers a new way to pay with crypto and to support the adoption and growth of the Solana ecosystem.

Author’s Take

Shopify is one of the largest e-commerce platforms in the world, contributing to 10% of total U.S. e-commerce and facilitating economic activity worth $444 billion worldwide. By partnering with Solana Pay, Shopify is opening up new opportunities for its merchants and customers to benefit from the advantages of crypto payments.

Overall from the adoption point of view, Shopify’s partnership with Solana Pay is good for crypto industry as it will lead to more and more people adopting crypto as a means of payments. It will also encourage people to learn more about cryptocurrency.

Recently launch of PYUSD stablecoin by Paypal and now Shopify’s partnership with Solana Pay shows that the big tech companies are recognizing the potential of cryptocurrency. These steps will be ultimately bullish for crypto prices, but surely these things won’t happen overnight. The future of crypto payments looks brighter than ever.

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