Stablecoins Revolutionize Retail Payments in the Crypto Space

Stablecoins are emerging as an essential solution for businesses aiming to streamline and enhance payment processes. In Singapore, the stablecoin payment volume hit $1 billion recently. This shift comes as stablecoins are increasingly viewed as superior to traditional fiat currencies and volatile cryptocurrencies. They have already integrated into daily life—facilitating payments and shopping—and the e-commerce sector is no exception.

But how will they specifically reshape the e-commerce industry? Let’s explore this in detail.

The current landscape of crypto payments in e-commerce

Crypto payments are gaining traction globally. Recent research indicates that 64% of consumers are interested in utilizing cryptocurrency and stablecoins as payment methods. With $4.2 billion in crypto transactions processed through Visa crypto-backed cards in the first fiscal quarter of 2023, this trend is increasingly apparent.

The adoption rate among younger demographics is even more pronounced: 40% of individuals aged 18-35 intend to use cryptocurrency, and 10% plan to use it on a regular basis. Moreover, 31% anticipate making continuous crypto payments in the upcoming year. On the business front, about 74% of retailers are planning to begin accepting crypto payments within the next two years.

Countries such as the US, Canada, Australia, the EU, Israel, and the Central African Republic are at the forefront, but emerging players like China and Russia are already exploring unified crypto regulations through the BRICS coalition.

However, despite the advancements and notable trends, adoption remains inconsistent. Nonetheless, it is evident that widespread implementation is on the horizon, especially due to stablecoins like Tether (USDT) and USD Coin (USDC).

Stablecoins: A transformative force for e-commerce payments

Stablecoins are poised to become the most convenient payment option. Why is that? To sum up the benefits of stablecoins, they provide:

• quicker and more secure payment alternatives;
• a simplified and stable introduction to digital payments;
• eliminated risks of conversion and exchange rate fluctuations.

Sounds appealing, right? The final benefit alone could catalyze significant crypto adoption among businesses operating across various markets.

Now, let’s consider the perspective of an e-commerce business owner for a moment. In this sector, payments need to be allocated appropriately. Envision processing a high volume of orders where payments continue to funnel into your designated fiat account. Wouldn’t it be more convenient to have them directed straight to your crypto wallet? This not only streamlines transactions but also enhances control over funds, optimizing the entire process.

To clarify further

Because stablecoins are pegged to fiat currencies like the US dollar or Euro, they exhibit less volatility than other types of cryptocurrencies, making them inherently more stable. This stability is a significant advantage and a critical consideration for businesses. The predictable nature allows them to secure profits without the fear of sudden value changes, thus relying on stablecoins as a viable payment method.

Furthermore, stablecoins like USDT and USDC have extended beyond major blockchains such as Ethereum, becoming available on more efficient and cost-effective platforms like Polygon, Solana, Avalanche, Optimism, and Algorand.

Each blockchain offers distinct benefits—for instance, Polygon completes transactions in an average of 2.1 seconds per block at an average cost of just $0.015. Likewise, Solana’s transaction costs can be as low as 0.000014 Solana (SOL), or $0.00189, which is nearly 900 times cheaper than Ethereum.

This expansion across various blockchain networks enhances the accessibility and practicality of stablecoins for a diverse array of businesses. In e-commerce, stablecoins alleviate many complications linked to traditional payment systems, such as chargebacks, delays, and elevated transaction costs.

Most importantly, cross-border payments—a significant hurdle for e-commerce retailers—can be vastly streamlined with stablecoins. As stablecoins bypass the conversion issues and exchange rate volatility of fiat currencies, they facilitate smoother international transactions.

In summary, stablecoins offer the opportunity to reach a global customer base without the complications of conventional payment infrastructures.

The outlook for stablecoin adoption in e-commerce

Regulatory frameworks remain one of the primary challenges in crypto adoption. Nonetheless, as regulations evolve, more regions are adapting cryptocurrencies to cater to their business environments. Stablecoins are particularly well-placed to assume a leading role in this shift. What we observe is a gradual acceptance of cryptocurrencies—Singapore serves as a prime example.

Digital assets are transitioning from being perceived as niche or speculative to becoming integral components of future financial transactions.

We are already witnessing the rise of new stablecoins; however, in the foreseeable future, we might see them linked to assets beyond fiat currencies. This suggests further growth of the stablecoin ecosystem across additional blockchain networks and broader utilization by businesses globally.

Stablecoins have moved from being a distant concept to a present reality, with limitless potential. They provide solutions to multiple challenges faced in e-commerce by presenting a stable, secure, and economical alternative to conventional fiat payments and unstable cryptocurrencies. Quicker transactions, reduced fees, and enhanced accessibility make stablecoins a logical choice for improving payments not only in e-commerce but across all industries, attracting new retailers into the crypto space.

It is merely a matter of time before stablecoin payments are embraced as a mainstream option in e-commerce. The future is undoubtedly digital, and stablecoins are paving the way.

Vitaly Shtyrkin

Vitaly Shtyrkin is the Chief Product Officer at B2BINPAY, a comprehensive crypto ecosystem for businesses. Vitaly brings extensive experience as a product manager, contributing significantly to shaping product strategies and overseeing the development process to ensure alignment with organizational objectives. With nearly 15 years in the financial market, particularly in the fintech space, he has recently concentrated on crafting solid crypto payment solutions for enterprises. As a key member of B2BINPAY’s team, Vitaly is passionate about optimizing digital asset management processes. He leads with a strategic vision aimed at creating a holistic financial ecosystem that promotes the widespread acceptance of cryptocurrency. Utilizing his broad expertise, Vitaly is devoted to fostering innovation and enhancing processes within the industry.