Maker has rolled out some reasons for online merchants to adopt Dai as a preferred option for crypto payment.
The decision by Maker to promote Dai was a result of a recent rise in online traders’ use of cryptocurrencies as a means of payment. This is due to the rise of decentralized finance (DeFi) and the limitless benefits of crypto payments to both online sellers and customers alike.
With the great efficiency and security provided by DeFi, there is still a hitch in the acceptance of crypto payments. The reason is that most cryptocurrencies have high volatility and merchants must exchange payments using a stable currency at first, to avoid loss of value for received funds.
Maker’s token Dai actually prevents such loss because there is no need for exchanges during Dai payments.
Dai as a means of payment
Dai represents the leading decentralized stable coin and in the DeFi space, it is the most used cryptocurrency. When you use Dai, it’s more like you’re using cash. This is because it can be used as a means of payment and can be held without penalty or risk. Merchants can choose if they want to exchange Dai or if they don’t.
With its outstanding features, Dai perfectly suits e-commerce traders as they get the best out of fiat and cryptocurrency.
Why merchants should adopt Dai as payment?
One of the reasons merchants should adopt Dai is due to its low volatility. Through the Maker protocol, Dai as a stablecoin is able to alleviate volatility. Unlike Bitcoin, e-commerce traders can indefinitely receive and hold Dai, without necessarily exchanging it with other fiat currencies.
With Dai, exorbitant processing fees can be avoided. Depending on their transaction rates, small e-commerce sites can avoid high payment processing fees. This is because crypto gas fees are actually lower. Dai also incurs a little flat fee which the sender will pay during payment.
Being integrated with many wallets, Dai is suitable for mobile payments. This provides ease for customers to make payments using their mobile phones. According to Forbes, by 2021, 72% of online purchases will be carried out using mobile devices.
Dai is hosted on a decentralized blockchain, and this makes all Dai crypto payment permanent and transparent. As a result, there are no chargebacks or middlemen during transactions. Once payment is made, such a transaction can neither be reversed nor canceled. Customers only get to receive refunds when the merchant issues one. Read full details here.