Solana Pay Integrates With Shopify Allowing Payments in USDC for Businesses

Ethereum competitor Solana has taken a step further in bringing crypto payments to daily purchases. Solana’s decentralized payment protocol Solana Pay has recently announced its integration with the widely used e-commerce platform Shopify.

The integration would allow several businesses registered on the Shopify platform to accept payments in the USDC stablecoin. As we know, USDC is the second-largest stablecoin with a market cap of $25.9 billion.

The decision to begin with USDC seems to be a strategic one since merchants are more likely to accept a digital asset closely tied to the US Dollar. Josh Fried, the head of commerce business development at the Solana Foundation, said: “When thinking about this integration, we chose a stablecoin because merchants and consumers ‘think in dollars. It creates a much simpler entry point when pricing is in a currency consumers and merchants naturally understand.”

Shopify, which makes up 10% of all online shopping in the U.S. and contributes to $444 billion in global economic activity, has now become a part of the Solana network.

Solana Pay is gaining popularity with well-known crypto entities like Circle and Phantom, as well as payment processing companies like Checkout.com and Citcon. This move strengthens Solana's position in the market even more, considering it already has over 11.5 million active accounts.

Solana Pay stands out for its almost "fee-free" transaction cost, providing a significant contrast to the traditional credit card processing fees of 1.5% to 3.5% per transaction. On Solana's blockchain, the average cost per transaction is incredibly low at $0.00025, equivalent to just fractions of a penny. This cost efficiency has the potential to transform how businesses manage transactions, particularly considering Solana's impressive 100% uptime in Q2.

This integration also introduces the possibility of innovative loyalty programs with minimal development effort. Merchants can introduce NFT loyalty tokens that offer discounts to returning customers who use Solana Pay for their purchases. Several crypto-focused teams and brands have already agreed to incorporate Solana Pay into their Shopify storefronts. Additionally, any Solana-centric crypto wallet integrated with Solana Pay will be able to connect to this plugin.

Shopify has previous experience with crypto payment options, having launched blockchain-enabled commerce tools and integrated with other payment applications like Coinbase Commerce, Strike, Crypto.com, and BitPay. Solana Labs views its blockchain as ideal for payments, eliminating intermediaries, bank fees, chargebacks, and lengthy holding times.

The collaboration between Solana Pay and Shopify represents a major step forward in the advancement of e-commerce and online payments. Through its support for USDC payments, Solana Pay has not only broadened the range of payment choices available to countless businesses, but it has also introduced a transaction model free of fees, potentially reshaping the financial dynamics of the industry.