Solana Labs recently rolled out its latest feature, a payment platform called Solana Pay. The payment mechanism would allow for a direct payment link between merchants and their clients. This means that sellers can directly collect crypto payments for their digital products.
In a blog post it shared, the network said its new product would ‘usher in a new era of payments and commerce’. Solana’s team hopes to lay a foundation for “a decentralized, open and truly peer-to-peer payment protocol.” Being a peer-to-peer payment mechanism, Solana Pay would simplify the process of digital transactions.
1/ Introducing Solana Pay, a decentralized, secure, and open-source payments protocol for the next generation of merchant payments 💸#SolanaPay https://t.co/mI2hMIh79G
— Solana (@solana) February 1, 2022
How Does Solana Pay Work?
Using Solana Pay, traders and vendors on Solana’s blockchain can accept Solana’s native token, SOL, or the stablecoin USDC. Furthermore, Solana Pay is compatible with other Solana-based tokens. Solana Labs stated that payments would be instantaneous, adding a real-time advantage to the payment service.
Solana said its new rollout came after its merchants on its platform had sought direct links and engagement with their clients. However, the presence of third parties in digital transactions makes that difficult.
Furthermore, Solana Pay users will enjoy reduced costs due to Solana’s lower fees. The new payment service considers that its users want a seamless experience without the constraint of cost. As a result, the payment service will be more cost-effective for its customers.
Solana Pay to be a GameChanger
Solana Labs Head of Payments, Sheraz Shere, opened up about the importance of this payment system to The Block. Shere said, “If people can seamlessly transact on-chain just like they do with cash, we believe that will spur interest and create new innovations, which is why the protocol is designed to allow for developers to build new commerce experiences on top of it.”
Shere further noted the next phase of development would be revolutionary for the commerce space. Following the update, the protocol will allow merchants to transfer digital assets back to their clients. This feature was previously unavailable in the commerce space.
Solana’s Multiple Partnerships For Digitial Payment
Solana’s team developed its new payment infrastructure in collaboration with other projects. These include Circle, Checkout.com, and Citcon. Furthermore, the platform got digital wallet integration from the likes of Slope, Phantom, and FTX.
As part of the collaboration, Circle will allow traders to take USDC through a Circle Account, from which they can also convert cashback to fiat currency. Furthermore, Phantom will support Solana Pay transactions. In addition, Solana’s team has an ongoing conversation with Shopify to support digital payments on its platform.
A Tough Competition is in View
With Solana Pay, Solana’s network plans to invade a congested environment of existing financial apps. Tech firms like Apple and Google currently dominate the digital payment space. Other big players like PayPal intend to have a say in the digital payment realm. Solana Pay would also have to compete with Venmo, Wise, Cash App, and Stripe. However, Solana’s edge is its support for cryptocurrencies.
Rather than seeing itself as a competitor, Solana’s platform intends to act as a game-changer. Solana, a fast-paced blockchain, plans to overhaul the present ideology in the digital payment business. Solana’s team wants to create a system that hands full control to merchants and is truly decentralized. This will provide a new experience in the Web3 e-commerce industry.
Solana’s Platform To Address its Shortcomings
Most crypto users believed Solana, established in 2019, would give Ethereum a run for its money. The blockchain’s higher capacity was easily noticed. However, things have not gone as expected. The network has experienced a number of network disruptions, casting doubt on its efficiency.
The network went down for 48 hours in late January. The platform also suffered from previous overloading concerns. However, it plans to address them alongside other events that would contribute to the developer’s world.
Solana’s Price Activity
As of writing, Solana trades at $110.63 and is up 3.31% in the last 24 hours. Furthermore, it has a 24-hour trading volume of $3,105,626,539. Solana is up 3.31% in the last 24 hours.
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