The ‘Email Moment’ for Online Payments (Which Could Kill Visa and Mastercard)
TL;DR
Solana Pay allows merchants to accept stablecoin payments in USDC, for a flat fee of $0.00025.
Not only is Solana Pay faster, but - GET THIS - it’s also 46,200x cheaper when processing a $1000 purchase.
Crypto payments, like USDC via Solana Pay, make it possible for big name merchants like Amazon to save billions per year in fees.
Full Story
Changing the speed and cost of a product or service can have a massive impact on an industry - or hell, the world!
Just look at the transition we’ve all made in the past 30-odd years, as we moved from paper mail (slow and costly) to email (free and instant).
…ok, what does this have to do with crypto?
Solana Pay is coming to Shopify and allowing millions of businesses to use crypto as a payment method.
Which is a way bigger deal than it may first appear!
(This could be the ‘email moment’ for online payments)
Here’s why:
Solana Pay allows merchants to accept stablecoin payments in USDC, for a flat fee of $0.00025.
Ok, so merchants save a few cents in fees? Boooring!
True…payments are a snooze fest at first glance, but check this out…
Let’s compare each system on a per-transaction basis, using the lowest card fees available:
Mastercard Rate: 1.15% + $0.05 rate (some go as high as 3.5% + $0.30) Speed: 3 business days before it’s in your account.
Vs.
Solana Pay Rate: $0.00025 Speed: a few seconds before it’s in your account.
Here's what that looks like IRL:
$10 transaction Card (1.15% + $0.05) = $0.165 fee Solana Pay (+ $0.00025) = $0.00025 fee
$100 transaction Card (1.15% + $0.05) = $1.20 fee Solana Pay (+ $0.00025) = $0.00025 fee
$1000 transaction Card (1.15% + $0.05) = $11.55 fee Solana Pay (+ $0.00025) = $0.00025 fee
So not only is Solana Pay faster, but - GET THIS - it’s also 46,200x cheaper when processing a $1000 purchase.
And this is why crypto payment integrations will extend far beyond Shopify merchants, in time.
For example:
Amazon made ~$514B in 2022, which means if they were paying the 1.5% industry average for card fees, they would have had to have forked out $7.71B between Mastercard and Visa.
Crypto payments, like USDC via Solana Pay, make it possible for big name merchants like Amazon to save billions per year in fees.
...Visa and Mastercard better watch their backs (see gif ☝️).