Solana Pay Now Integrated with Shopify for USDC Payments
Solana Pay, a decentralized payment protocol by Solana Labs, is now integrated into Shopify's e-commerce platform.
Solana Pay, a decentralized payment protocol developed by Solana Labs, has been integrated into Shopify's e-commerce platform. This move allows millions of businesses on Shopify to adopt a new payment method using the stablecoin, USDC, which boasts a market capitalization of $25.9 billion.
The decision to start with USDC is strategic. Given its close tie to the U.S. dollar and its regulatory compliance, it's an attractive option for merchants and consumers. However, the protocol is considering the integration of other cryptocurrencies, including Solana's native SOL token and BONK, a meme coin, in the future.
Shopify, which accounts for 10% of total U.S. e-commerce and facilitates $444 billion worth of global economic activity, has progressively integrated Web3 solutions into its operations. This includes a suite of blockchain commerce tools for Web3-focused stores, and crypto wallet connect features. The platform had previously integrated other crypto payment options like Strike for Bitcoin lightning network payments, Coinbase Commerce, and Bitpay.
The Solana ecosystem currently has over 11.5 million active users. Solana Pay has been adopted by major crypto entities like Circle and Phantom and payment processors like Checkout.com and Citcon. Josh Fried, the Head of Business Development at the Solana Foundation, emphasized the significance of payments in the crypto space, stating, "Some people argue the killer app for crypto hasn’t arrived, but it has: it’s payments."
Compared to traditional credit card processing fees, which can range between 1.5% and 3.5%, Solana Pay offers a virtually fee-free experience. Transactions on Solana's blockchain cost around $0.00025, mere fractions of a penny. This integration also allows merchants to establish innovative loyalty programs, such as NFT loyalty tokens, offering discounts or other rewards for repeat purchases.
Several crypto-focused teams and brands, including Helius, Mad Lads, and MonkeDAO, have already integrated Solana Pay into their Shopify storefronts. Despite its past challenges with network outages, Solana has shown resilience, reporting 100% uptime since February.