Stablecoin Payment: The New Choice for E-Commerce Giants

In recent years, cryptocurrency payments have gradually become the "payment method of the future" in the eyes of global retail giants from a niche scenario. This trend is rapidly developing, attracting widespread attention and discussion within the industry.

Recently, a well-known e-commerce platform officially launched USDC stablecoin payment functionality, with the first batch of merchants beginning testing on June 12 and a full rollout expected within the year. Meanwhile, several global retail giants are reportedly exploring the issuance of their own stablecoins, and even some travel and airline companies are starting to research cryptocurrency payment solutions.

What is the driving force behind this trend? What pain points do stablecoins actually address? Should traditional financial institutions feel threatened? Let's dive deep into the core reasons why e-commerce is embracing crypto assets and see if this is just a temporary fad or an inevitable choice for future payments.

The Payment Dilemma Faced by E-commerce for a Long Time

Payment has always been a significant hidden cost in the e-commerce industry. Whether on major e-commerce platforms or in the global market, using a credit card, third-party payment, or mobile payment incurs substantial fees.

Taking mainstream credit cards as an example, a fee of 2-3% is usually charged. This means that merchants have to pay a considerable "invisible tax" for each item sold. Not to mention that cross-border orders also involve foreign exchange fees and settlement delays. Traditional payment methods have undoubtedly become a significant burden on the development of digital commerce.

In contrast, stablecoins offer some compelling advantages:

• Real-time settlement (based on blockchain transactions)
• Low transaction costs (reducing intermediary links)
• Cross-border compatibility (simplified foreign exchange operations)
• Programmability (can seamlessly integrate with logistics and fulfillment systems)

Therefore, it is not surprising to see that several e-commerce giants are actively assessing whether they can take control of this value chain.

A certain e-commerce platform takes the lead in testing USDC payments

Among many e-commerce platforms, a company took the lead in taking action. By partnering with a certain cryptocurrency exchange, the platform launched a USDC payment feature based on the Ethereum Layer 2 network. Its operation is as follows:

• Customers use USDC for payment through the blockchain network.
• Merchants receive fiat currency (automatically converted to USD, etc.)
• The backend is handled by professional institutions for conversion and settlement.

For customers, the payment experience remains largely unchanged; for merchants, there is no need to have an in-depth understanding of crypto assets, as the entire process is fully automated. The key differences are: lower fees and faster settlement speed.

To attract users to use the new payment method, the platform even offers a 1% USDC cashback incentive. This move directly challenges the position of traditional payment channels.

This also demonstrates the platform's deep insights into Web3 user behavior. Many stablecoin holders may not frequently use credit cards or traditional third-party payments, but they possess consumable digital assets. The platform aims to convert this segment of users into active buyers.

Retail giants are following suit

With the proactive actions of the aforementioned e-commerce platforms, it is even more symbolic that global retail giants are also beginning to take cryptocurrency payments seriously. Several mainstream media outlets have reported:

• Many global retail giants are exploring the issuance of their own stablecoins.
• Some travel platforms and airlines are also exploring cryptocurrency payment solutions to simplify cross-border travel settlements.

Why are these traditional giants suddenly going "all out"? The main reasons include:

• Reduce transaction costs: stablecoins can bypass traditional acquiring institutions, significantly reducing fees.
• Accelerated settlement: reduced from several days to a few seconds
• Enhance customer retention: Cryptocurrency asset users are more inclined to support merchants compatible with their wallets.
• Bypass traditional bank delays: No need to wait for bank transfers or credit approvals.

In short, stablecoins address several long-standing pain points that e-commerce has struggled with for years. It's no wonder so many companies are eager to try it out.

It is worth noting that some global payment providers have recently publicly criticized stablecoins, which is no coincidence – they are indeed feeling the pressure.

Practical Applications of Cryptocurrency Payments

It is important to clarify that the actual payment of crypto assets is not completely decentralized. Taking the implementation of the aforementioned e-commerce platform as an example, it adopts a typical "on-chain/off-chain hybrid" model:

• Users select USDC payment on the platform interface (through blockchain network transactions)
• The platform receives payments, and professional institutions convert them into fiat currencies (such as USD, EUR, JPY)
• Fiat currency is delivered to merchants through traditional banking channels.

Therefore, although stablecoins bypass traditional payment networks, the last mile still relies on the banking system. This is exactly the issue that regulators are closely monitoring: Are stablecoins evading compliance? Is the settlement process transparent? How are measures like anti-money laundering and know your customer being implemented?

Fortunately, the relevant companies have done their homework, and their implementation methods align with the current regulatory expectations for stablecoin compliance in the United States.

The Deep Reasons Behind E-commerce Giants Betting on Stablecoins

Analyze the core driving factors, mainly including the following three points:

1. Cost Pressure

Merchants are tired of paying high credit card and third-party payment fees. Stablecoins offer a way to bypass intermediaries, reduce costs, and accelerate cash flow.

2. Technical Upgrade Requirements

Traditional Web2 platforms are still constrained by traditional banking systems. In contrast, Web3 payment infrastructure is inherently equipped with:

• Automation
• Borderless
• Transparent

The new generation payment protocol can be directly integrated into the order system, making it much simpler and more efficient than traditional payment SDKs.

3. Changes in User Demand

The user base of crypto assets is growing rapidly, and they "have coins but nowhere to spend them". Supporting crypto payments is a simple way to attract and retain this group. Additionally, it supports innovative reward mechanisms—cashback, NFT benefits, gamified loyalty programs, etc.

Conclusion

Can stablecoins reshape the global e-commerce payment landscape? Let's take a look at some current signals:

• Surge in payment volume: The monthly payment volume of stablecoins has increased from $2 billion two years ago to $6.3 billion, with a global total transaction volume exceeding $94 billion.
• The platform is taking active action: Many e-commerce and retail giants have already launched or are studying related solutions.
• Clear trend: The acceptance of crypto assets is rising, cross-border trade requires efficient settlement, and traditional payment systems are gradually showing bottlenecks.

If Bitcoin is digital gold, then stablecoins are becoming digital dollars. The e-commerce players who act first are laying the groundwork for global payments in the next decade. This transformation has just begun, and we will watch closely for its future development.