Solana Pay, the decentralised, open-source, peer-to-peer payments protocol built on the Solana blockchain, is now available to millions of businesses as an approved app integration with Shopify, the global commerce company providing internet infrastructure for commerce.
Solana Pay aims to make it easier for merchants to have real-time access to their money and to manage working capital, liquidity, and liability protection.
The payment protocol eliminates bank fees, chargebacks, and holding times while enabling immediate, direct payment settlement of USD stablecoins compatible with Solana – as it deals with no intermediary.
Payments through Solana Pay also enable web3-enabled commerce experiences, including token-gated offers, simple cross-border payments, and NFT-based loyalty programs.
Built on the decentralised Solana network, Solana Pay is an open-source protocol offering high transaction speeds and “near-zero” fees. These factors hope to make it an ideal choice for firms scaling Web3 payments, while providing a good user experience.
Josh Fried, head of commerce business development at the Solana Foundation, discussed the significance of the integration: “Solana Pay on Shopify opens up millions of merchants to a more dynamic and efficient payment choice, while consumers get the convenience and increased utility of being able to pay for goods and services with digital dollar currencies from the vast network of merchants using Shopify.”
“Making the future of payments more than just the payment itself”
Josh Fried also sat down with The Fintech Times to discuss how the collaboration with Shopify could help Solana Pay see increased adoption and reach a larger audience.
Fried explained: “Shopify is a global giant in e-commerce and retail point-of-sale tech. With more than two million merchants across the globe, the integration is very important to offer real benefits and exposure to consumers using Solana Pay.
“This is a practical use case of blockchain technology as opposed to the often speculative activity seen in crypto, and creates a much simpler entry point to crypto by using USDC.”
He also provided insight into the potential future for blockchain-based payment protocols: “We see a trend that many web2 payment companies are looking to leverage blockchain technology. The integration of Solana Pay into the Shopify infrastructure is another touchpoint for consumers and merchants to experience the benefits of payments settled on the blockchain.
“Payments on Solana Pay are settled instantly with significantly lower fees by cutting out the middleman and facilitating peer-to-peer transactions from consumer to merchant. The cost savings that come with using USDC for payments could ultimately be reflected in the costs of services and goods through Shopify, thereby benefiting customers.
“Additionally, Solana Pay creates a way for merchants of any size to build loyalty with consumers and opens up a two-way communication channel – making the future of payments more than just the payment itself. Merchants can send their consumers NFTs, grant discounts and create an impactful relationship with end consumers.
“Small and medium-sized businesses, and the companies building the underlying payment infrastructure for e-commerce, have taken note of the tangible benefits of blockchain-based payments, and we’ll likely see continued growth in this area in the near future.”