“Solana Pay” To Boost Stablecoin Payments

February 2, 2022 6:23 pm

Solana Labs has recently announced that they will be launching new software called “Solana Pay” where the purpose is to help businesses accept payment transactions using the Solana network.

Currently, there are already a number of clients that will be accepting “Solana Pay” such as Checkout.com, Circle, and Citcon which will greatly help prove Solana’s utility as truly a payment network which is what it was originally designed for.

That’s not to say that other crypto options can’t handle the same type of payment transactions that Solana is being used for in the case, but many have been plagued by certain disadvantages such as not having enough speed, scalability, and low fees.

With the Solana blockchain specifically targeting all these pain points, there is a potential chance this can help accelerate growth for using crypto to do payment transactions on a more mainstream level.

CoinDesk reports:

The software development kit (SDK) takes crypto in and spits crypto out. Obvious, maybe – but a notable difference from some of the market’s better-known crypto-to-fiat rails.

Virtually every merchant paid with a “crypto credit card” sees their payments settled in cash.

Crypto payments have been central to the industry since the Bitcoin white paper touted “peer-to-peer electronic cash” over a decade ago.

But a mix of price volatility, slow on-chain settlement and tax headaches hampered growth, said Sheraz Shere, head of payments for Solana Labs.

“Now that we have a blockchain that has the throughput, speed and scalability and low fees of traditional payment networks – 50,000 transactions per second and sub-second transfer times, we can potentially build a merchant payment system that’s truly on the blockchain, and most importantly, that’s peer-to-peer and decentralized and permissionless,” Shere said.

Solana investors are also very confident about the fact that the popular Solana native USDC integration with Solana Pay.

Currently, the Solana blockchain already has $4 billion dollars worth of the popular stable coin flowing throughout the Solana network which deeply solidifies Solana’s status as truly a payment network.

The best part is the minimal payment transaction fees that are on the Solana network which is a tiny fraction compared to traditional digital payments  or other blockchains.

The only thing left to do now in ensuring an easy way for Solana Pay to plugin with a variety of different businesses and merchants to use.

The service to integrate Solana Pay is relatively cheap or can even be free if the businesses do it themselves, but not all businesses truly understand how it all works yet.

Yahoo reports:

The state of play for merchants is only a tad more complicated. Plugging into Solana Pay through a third-party like Checkout.com, they might pay a minimal service charge.

They could set it up themselves for zero fees, he said.

Customer payments are only the start, Shere said. He’s “thinking about a future where stablecoins like USDC are the transactional currency,” underpinning everything from payroll to invoices.

That said, Solana has seen its fair share of hiccups lately.

Continued network slowdowns could set back the stated vision, though a spokesperson for Solana Labs said that USDC transfers are simple to execute and unlikely to add stress.

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