Web3 Will Be Key for Payment Processors

Web 3.0 is driving innovation, and traditional payment gateways are racing to keep up with merchant innovation, Zero Hash Chief Client Officer Adam Leaman writes in the new PYMNTS eBook, “What’s Your Plan? Payments Strategies for a Strong 2022 Finish.”

The third quarter of 2022 saw consumer spending pullbacks, forcing merchants and brands to innovate. Many are responding with Web3 engagement strategies, and Zero Hash has seen traditional payment gateways racing to keep up with merchant innovation. As such, enhancing payment groups’ ability to leverage our Web3 gateway has become our primary focus as we close out 2022.

Web 3.0 is driving innovation in non-fungible tokens (NFTs), music, art and digital property rights with multiple blockchains to build on. Brands including Nike, Starbucks, DC Comics, and even Gucci are experimenting with loyalty programs, digital goods, and new ways to tie the digital activity to the physical world. As traditional companies enter Web 3.0, so must their payment providers — Zero Hash’s focus is on enabling this bridge of Web 2 and Web 3 payments.

As Q4 begins, here are some of the ways we are addressing the growing demand for a seamless Web3 experience:

Broad Multi-Chain Stablecoin Support

Stablecoins are crypto assets that aim to maintain a stable price, typically on par with the U.S. dollar or other fiat currencies. Multi-chain support is important because it allows customers to transfer value using their choice of blockchain, such as the one with the lowest network fees. For example, transferring USDC over the Solana network can incur fewer costs than transferring USDC over the Ethereum blockchain.

In Q4, we will widen the flexibility of stablecoin offering and choices that best suit payment processors’ goals. Zero Hash already supports a host of cross-chain stable coins and, in Q4, is widening this to include USDC on HBAR, XLM and AVAX.

Extensive Digital Asset Support

Innovation in this space moves very quickly, including the assets and blockchains built upon and with the largest market cap. If you compare the top 20 assets by market cap year over year, only 11 are the same. Newer blockchains are innovating, trying to lower the on-chain transaction fees by building what is known as a Level 2 (or L2) chain on top of the Ethereum blockchain. L2 chains bundle or “roll-up” many transactions into a single Ethereum transaction to reduce each transaction’s individual cost.

With this backdrop, Zero Hash will support this ever-evolving landscape and will offer five new assets in Q4. ETH opened up a new level of functionality when compared to bitcoin; however, these capabilities came with higher transaction costs, known as network fees.

Smart Contract Capabilities

Payment processors, in particular, want more access to the Web3 economy, which is powered by smart contracts (rules written on the blockchain that trigger when certain conditions are met). In Q4, we will expand upon general smart contract capability for Ethereum, in addition to chains compatible with Ethereum’s Virtual Machine (EVM) technology, including Fantom, Polygon, Avalanche, The Graph and many more via our API.

With expanded Web 3.0 adoption, our payment infrastructure customers are positioned to play a key role in connecting businesses and consumers to Web 3.0 infrastructure. We are committed to supporting them in that process.