Solana Pay could catapult Layer 1’s to compete with established companies like PayPal. Covered: Solana Pay Goes Live Payments Are Like “Sending an Email” USDC Fully Integrated Solana Pay Goes Live  In February, Solana Labs announced a new payments platform that could take the merchant/customer interaction to a new level. The new protocol allows stablecoins, […] The post Can Solana Pay Compete With PayPal? appeared first on CryptosRus.

Can Solana Pay Compete With PayPal?

Solana Pay could catapult Layer 1’s to compete with established companies like PayPal.

Covered:

  • Solana Pay Goes Live
  • Payments Are Like “Sending an Email”
  • USDC Fully Integrated

Solana Pay Goes Live 

In February, Solana Labs announced a new payments platform that could take the merchant/customer interaction to a new level. The new protocol allows stablecoins, such as USDC and USDT to move directly from the wallet into the merchant’s account. Because Solana is lightning fast, this means settlement and finality could happen in seconds.

In current merchant solutions, like Square, for example, merchants still have to pay fees to process the debit and credit cards. PayPal checkout comes with a 3.49% fee and a fixed fee on top of that. On top of that, merchants have to wait for transactions to settle through the bank. Solutions like Solana Pay could solve this friction.

The first-ever Solana Pay transaction took place just a week ago at a shoe store in the famous Wynn Hotel in Las Vegas, Nevada. The video shows that the payment is as simple as scanning a QR code from the Solana wallet; just like that, the merchant has instant access to the funds.

Payments Are Like “Sending an Email”

Solana Pay aims to make payments like sending an email a simple data message. As their announcement states: “The funds hit your merchant account at the speed of sending an email, at near-zero cost, and immediately begin earning high-yield interest.”

Solana Pay is built by a team with deep experience in the payments field. Particularly Sheraz Shere, who worked for American Express and Google, working on Google Pay. In the announcement for Solana Pay, he states that “the futuristic promises in payments – simple, seamless, connected – haven’t materialized.”

The premise behind Solana Pay is to facilitate a ” true peer-to-peer communication channel between the merchant and consumer.” Another concept that is important to the project is ensuring censorship resistance and eliminating processing fees. Glow Wallet is a popular Solana wallet that has fully integrated the system.

More than just payments, NFTs, rewards, and loyalty programs are offered “in the same messaging scheme.” The next step in developing the protocol will “enable merchants to send digital assets back to the consumers which will open up new capabilities in commerce not possible before.”

Recommended: Solana Landing On Brave Browser To Bring DeFi Support To Millions Of Users

USDC Fully Integrated

It also will allow merchants to even participate in Defi to generate yield. Circle, the team behind USDC, has given their take on Solana Pay, saying, “Circle is thrilled to be working with Solana to simplify and adapt USDC payments for consumer-facing businesses.” 

Circle mentions how “merchants can settle and store USDC in their Circle Account, where they can manage payments and treasury operations, convert funds back to fiat via traditional bank accounts, and send USDC on-chain via a growing list of the world’s leading blockchains.”

Circle also cites a study that indicates “73% of small businesses surveyed said accepting digital payments is fundamental to growth in 2022.” All merchants need to do to integrate Solana Pay is enable a QR code on their merchant website or at the point-of-sale.

As CEO of Circle Jeremy Allaire put it: “the launch of Solana Pay means merchants and consumers will help drive how the advancement of blockchain technology reshapes the commercial payment infrastructure for enterprises and small businesses like never before.”

Solana Pay could certainly create much more inclusion, too, as potential sellers do not need to engage with credit card companies, banks, or any intermediaries. This is significant. It is well known that being able to accept credit cards directly takes significant effort, and many businesses are turned down.

PayPal, Square, and the traditional payments world will either integrate these solutions as well or be washed out by instant, by peer-to-peer, open-source solutions like Solana Pay.

Recommended: Solana Pay Is Getting The Crypto World Excited. Here’s Why.

The post Can Solana Pay Compete With PayPal? appeared first on CryptosRus.