The road to mass adoption of web 3.0 is all about aligning interests. Payments will be the killer app.
As presented in the previous article the merchant payments market is a huge one, dominated by consolidated entities and ready for disruption. We believe that the blockchain technology will help bring about that disruption. We believe this will happen sooner rather than later and that’s why we chose to build a solution to facilitate mass adoption.
We’ve already presented the Web 2.0 merchant payments business model in our previous article here: https://solpays.medium.com/merchant-payments-are-broken-solpay-is-a-one-click-web-3-0-payment-solution-e7df91a10ef0. The web 2.0 companies rely on providing a gated payment service and charging a fee for that service by extracting value from the client-merchant relationship usually in the form of payment processing fees. The interest of the payment provider is aligned with the interest of the merchant and all payment costs are passed to the consumer. The bigger the selling volume, the more revenue the payment processors make. Right now there is practically no one doing this in the e-commerce market so if you’re reading this you’re very early. We believe the next big wave in payments will be aligning interests towards no fees, instant, frictionless payments that will onboard millions of consumers to Web 3.0.
What if we shift the paradigm?
What if there was a way to do it in which everybody wins? Payments with zero fees, the merchant passes those savings to the consumer and all the transactions are handled fast and transparently on the blockchain while the payments processor becomes transparent? At first it seems that in this case the payment processor looses by not collecting fees but that isn’t actually the case. In the long term, everybody wins through the volume brought about by the mass adoption of Web 3.0 payments. Technology has finally enabled free payments and we believe onboarding millions of people will be the most valuable service. The
Free payments? I thought everyone in crypto was complaining about huge gas fees.
Not everyone in crypto and using blockchains is complaining about gas fees. The biggest disruptor in blockchain and crypto adoption last year was the Solana blockchain and there are two main reasons: it’s fast (400ms block times and achieving transaction finality within seconds) and it’s practically free (transactions end up costing fractions of a cent). It’s true that free payments could not be implemented on Ethereum or other blockchains because of gas fees. On the other hand Solana was optimised for fast, secure, transactions that take seconds to confirm and finalise.
How does it work and what is solpay.store?
The missing part of the payments puzzle was the Solana Pay launch announcement on the first of February. The Solana foundation build and launched Solana Pay, a specification for a protocol that allows the consumer to send digital dollar currencies, such as USDC, from their wallet directly into the merchant’s account, settling immediately with costs measured in fractions of a penny.
We’ve taken this protocol specification and built it into solpay.store, a merchant payment solution that can be easily and quickly integrated into any Wordpress merchant site as an alternative payments gateway. It works as seamless and as easy as installing any other plugin. Consumers can pay either via a Web 3.0 wallet on the website or by scanning a QR code and accepting the payment into their mobile Phantom app. Either way it’s a one click confirmation for the payment that makes it easy and frictionless for the user.
As we’ve seen in the previous article, that would remove much of the friction experienced by online shoppers. More than 50% of them quit because of fees or because it’s too hard or to buy the items they want, according to the the Baymard Institute study from 2019. Moving to Web 3.0 payments removes friction in terms of payment costs, complexity and time. Not to mention self custody of funds, transaction security and transparency. Once people get on this boat they will never move back.
Solpay.store is being built by a talented team of software engineers from Romania and is targeting the payment gateway market through a multitude of popular e-commerce software integrations. Right now our team of engineers has finished the prototype and demo for our WordPress integration and we are going to present a pretty cool demo of the technology soon. Follow our twitter page for updates: https://twitter.com/SolPayStore