Solana continues to grow as a blockchain and build upon its own ecosystem. Solana has built its reputation upon seamless transactions with minimal fees and now the blockchain has prepared a way to build upon their system with a payment platform that will capitalize on the strengths of the blockchain.
A Better buying experience
The idea stated on the main Solana website is quite intriguing. Imagine purchasing a pair of sneakers using your Solana wallet , the funds are instantly transferred to the merchant without a fee ( merchants often lament about fees that need to be paid to credit card providers for sales), the customer recieves the physical shoe and then two tokens, one a NFT that can be used in web3 and metaverse applications and the other is a token receipt that gives the purchaser access to exclusive clubs and opportunities.
Fees Fees Fees
As stated earlier fees paid by merchants for credit card transactions have always been a pain point for sellers. With credit card payents increasing past 131.2 Billion in 2018 to present (paymentdepot.com, 2021) and card payments accounting for over 60% of all transactions, fees paid by merchants can reach up into the trillions of dollars a year. According to fool.com the Average payments on Visa can range from 1.15% +$0.05 to 2.40%+$0.10, payments on Mastercard having a peak of 2.50%+$0.10. American Express has one of the highest fees ranging from 1.43%+$0.10 to 3.30%+$0.10. Keep in mind these are transaction fees that are paid by the vendor upon sales and dependent upon carrier. American Express has always had the highest fees. It would not be hard to imagine how beneficial a system such as the one planned by Solana would be for merchants.
Bridging The Gap
The idea is solid and introduces new ways for both merchant and customer to benefit from the growth of the blockchain. There of course have always been ideas like this pushed by other payment services but none that have come to fruition, Solana plans to change that and create a new ecosystem made to bridge web3 into the ecosystem of the real life merchant. The payment system will be decentralized and has been touted to “usher in a new era of payments and commerce.”
This could be a viable first step in mass adoption of digital currency and bringing to fruition the idea of decentralized non-taxed transactions that bring forth a more positive shopping experience for both shopper and merchant. To learn more about the possibilities produced with Solana Pay please make sure to check the official site here.