Solana Pay, a decentralized payments protocol built on the Solana blockchain network, has integrated with Shopify, offering millions of businesses a new payment solution.
This collaboration allows merchants to have real-time access to their funds and greater control over working capital, liquidity and liability protection, the Solana Foundation said in a Wednesday (Aug. 23) press release. By eliminating intermediaries, Solana Pay eliminates bank fees, chargebacks and holding times, while enabling immediate payment settlement using USD stablecoins compatible with the Solana network.
Josh Fried, head of commerce business development at the Solana Foundation, said in the release that the integration of Solana Pay on Shopify opens up numerous possibilities for merchants and consumers alike.
“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,” Fried said.
One of the key advantages of adopting Solana Pay is the gateway it provides to Web3-enabled commerce experiences, according to the press release. These experiences include token-gated offers, simple cross-border payments and non-fungible token (NFT)-based loyalty programs. By embracing Solana Pay, businesses can cater to their Web3-savvy customers and tap into the growing demand for Web3-native payment options.
The decentralized Solana network upon which Solana Pay is built is known for its high transaction speeds, near-zero fees and sustainability, the release said.
Several prominent brands that are already active on Solana, such as MonkeDAO, MadLads, Helius and Solana’s merch store, have committed to integrating Solana Pay as a payment option in their Shopify-powered storefronts, per the release. By offering Solana Pay, these brands recognize the opportunity to provide their customers with a Web3-native payment solution, aligning with the evolving landscape of digital commerce.
Solana Pay was launched in February 2022 as a low-cost, instant crypto-payment tool for everyday purchases. This point-of-sale (POS) payment product lets merchants accept USD Coin (USDC) stablecoin and other cryptocurrencies for online and in-store payments.
PYMNTS research has found that 35% of tech-driven consumers prefer merchants that take crypto. Beyond that, 26% of these consumers said they would go so far as to switch merchants to shop where crypto is accepted, according to “Shopping With Cryptocurrency: Tech-Driven Consumers Drive Market Acceptance,” a PYMNTS and BitPay collaboration.
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