Encryption Payment: The New Choice for E-commerce Giants

As encryption assets become increasingly popular, global retail giants are beginning to view them as a future payment method. Recently, several well-known e-commerce platforms have started to explore stablecoin payments, attracting industry attention. What are the driving forces behind this trend? Can stablecoins address the pain points of traditional payments? This article will delve into the core reasons for e-commerce's embrace of encryption assets.

The Payment Dilemma of E-commerce and the Advantages of Stablecoins

For a long time, payment fees have been the invisible cost killer for e-commerce platforms. Whether it's a large e-commerce company or a small merchant, each transaction requires payment of credit card or third-party payment platform fees, usually around 2-3%. For e-commerce businesses that already have low profits, this is undoubtedly a significant expense.

In contrast, stablecoin payments have the following advantages:

1. Real-time settlement: On-chain transactions can be completed instantly.
2. Low transaction costs: No need to pay intermediary fees.
3. Cross-border compatibility: Avoid complex foreign exchange conversions
4. Programmability: Easy to integrate with existing systems

These characteristics make stablecoins an ideal payment method in the eyes of e-commerce platforms.

Stablecoin Attempts in E-commerce Platforms

A well-known e-commerce platform has taken the lead in launching a USDC payment feature based on a certain Layer 2 network. Its operation is as follows:

• Customers pay on-chain using USDC
• Merchants receive fiat currency (automatically converted)
• The backend is handled by a third-party organization.

This model provides the same experience for customers, while merchants do not need to understand the details of encryption asset technology. The key advantages are lower fees and faster settlement speeds.

To attract users, the platform even offers a 1% USDC cashback incentive, directly challenging the status of traditional payment channels.

Retail giants are following suit

In addition to the aforementioned e-commerce platforms, several global retail giants have also begun to take encryption asset payments seriously:

• A large retailer is exploring the issuance of its own stablecoin.
• Travel and airline companies are researching encryption payments to simplify cross-border settlements.

The reasons why these traditional giants suddenly go "all out" include:

• Reduce transaction costs
• Accelerate settlement process
• Enhance customer stickiness
• Bypass traditional bank delays

In short, stablecoins are expected to address multiple pain points that the e-commerce industry has faced for a long time, which explains the positive attitude of major platforms.

Encryption payment's practical operation mode

It is important to note that the current encryption asset payments are not completely decentralized, but rather adopt a "on-chain/off-chain hybrid" model:

1. Users choose to pay with USDC on the platform (via blockchain network)
2. The platform receives payments, and third-party institutions convert it into fiat currency.
3. Fiat currency is delivered to merchants through traditional banking channels.

This model, although it bypasses credit card networks, still relies on traditional banking systems for the final step. Regulators are closely monitoring this area to ensure compliance and transparency.

The Deep Reasons Behind E-commerce Giants Betting on Stablecoins

Analysis indicates that the following three major factors have driven e-commerce platforms to embrace encryption payments:

1. Cost pressure: Seeking solutions to reduce payment fees and accelerate cash flow.
2. Technological Innovation: Web3 payment infrastructure has advantages such as automation, borderless, and transparency.
3. User Demand: Attract and Retain a Growing User Base of Encryption Assets

Outlook

The influence of stablecoins in the global e-commerce payment sector is rapidly growing:

• Surge in payment volume: Monthly payment volume increased from $2 billion two years ago to $6.3 billion.
• The platform is taking active action: Several giants have launched or are researching related solutions.
• Clear trend: the acceptance of encryption assets is rising, and the demand for cross-border trade is growing.

If Bitcoin is digital gold, then stablecoins are becoming digital dollars. E-commerce platforms that take the lead are laying the foundation for the global payment landscape of the next decade. With advancements in technology and improvements in regulation, encryption payments are expected to play a greater role in the e-commerce sector.