Solana Labs To Disrupt Traditional Peer-To-Peer Payments With New Protocol
Anew peer-to-peer payments protocol has been launched on Solana with support from Circle, FTX, and Phantom that will allow customers and merchants to use digital assets like Circle’s USDC stablecoin for various transactions. Launched by Solana Labs, Solana Pay, a decentralized payments protocol built on the Solana blockchain, lets merchants and e-commerce platforms accept payments using crypto wallets, giving merchants and customers expanded financial freedoms while allowing new kinds of interactions and purchasing power.
By Andrew Senior
February 1st, 2022
Solana Pay is a peer-to-peer service that provides merchants and customers with unlimited flexibility and the ability to accept and move Solana-compatible digital assets like USDC anywhere at any time. Solana Pay operates on the Solana blockchain and was spearheaded by Solana Labs in partnership with Checkout.com, Circle, and Citcon. Phantom and FTX have already announced that they will be integrating the service through their platforms.
Targeting e-commerce platforms, payment providers, and a variety of merchants, Solana Pay is looking to disrupt the outdated single lane transaction model by giving expanded freedoms to consumers, brands, and retailers. To start using the service, merchants will simply need to enable a barcode for customers to make payments using their cryptocurrency wallets.
Sheraz Shere, the Head of Payments at Solana Labs, highlighted some of the benefits of Solana Pay’s disruptive technology and user friendly cost capabilities in a press release saying,
“Solana Pay transforms outdated one-way transaction models into powerful, two-way merchant-to-consumer relationships, giving brands and retailers a direct channel to surprise and delight their customers in new ways. Now that we have a blockchain that has the throughput, speed and scalability and low fees of traditional payment networks – 50,000 transactions per second and sub-second transfer times, we can potentially build a merchant payment system that’s truly on the blockchain, and most importantly, that’s peer-to-peer and decentralized and permissionless.”
Circle’s Jeremy Allaire commented saying that the Solana Pay launch was “a critical step toward broadening access and usage for merchants and customers who want to participate in the rapidly evolving landscape for the next generation of payment technology.”
The Circle-issued stablecoin USDC will be the primary medium of exchange on Solana Pay at launch. However, there could be quick adoption of Phantom, FTX, and many other Solana-compatible digital assets. Circle has already stepped into the payments space after it partnered with both Visa and Mastercard last year, now it’s looking to disrupt the traditional mechanisms of the business even further.
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