Stablecoins bring new retailers to crypto

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Stablecoins are becoming an important solution for businesses looking to simplify and improve their payment processes. In Singapore alone, stablecoin payment value reached $1 billion a few weeks ago. This is because stablecoins are now seen as a better alternative to traditional fiat payments and volatile cryptocurrencies. They have already become the mainstream digital tool for daily use, from payments to shopping, and the e-commerce space is no exception.

So how exactly will they transform the e-commerce industry? Let’s break it down.

Current state of crypto payments in e-commerce

Cryptocurrency payments are gaining momentum all over the world. Recent research shows that 64% of consumers are interested in using cryptocurrencies and stablecoins as payment options. This becomes even more evident when looking at $4.2 billion in crypto payments made through Visa crypto-supported cards in the first fiscal quarter of 2023.

The adoption rate among younger generations is even higher: 40% of 18-35 year olds plan to use cryptocurrency, with 10% planning to use it regularly. Additionally, 31% expect to make consistent crypto payments in the next 12 months. On the business side, nearly 74% of retailers say they plan to start accepting crypto payments within the next two years.

Countries such as the USA, Canada, Australia, the EU, Israel and the Central African Republic are now leading the way; however, new players such as China and Russia have already begun exploring unified crypto regulations through the BRICS alliance.

But despite the progress and great indicators, adoption remains uneven. However, it is clear that their widespread use is inevitable, mainly due to stablecoins such as Tether (USDT) and USD Coin (USDC).

Stablecoins: A game changer in e-commerce payments

Stablecoins can easily become the most convenient payment method. From where? If we talk briefly and clearly about the advantages of stablecoins, I can emphasize the following:

faster and safer payment option; a simplified and stable entry point to digital payments; Eliminated conversion and exchange rate fluctuations.

Sounds great, right? The last advantage alone could significantly increase cryptocurrency adoption among businesses operating in multiple markets.

Let’s also put ourselves in the shoes of an e-commerce business owner for a moment. In e-commerce, payments have to go somewhere. Imagine you process a large number of orders and payments keep going to your registered fiat account. Wouldn’t it be much more convenient if they were sent directly to your crypto wallet? Not only is this a straight forward transaction, but it also simplifies the entire process by providing greater control over the funds.

To be more precise

Since stablecoins are pegged to fiat currencies such as the US dollar or Euro, they are less volatile and, as the term suggests, more stable compared to other cryptocurrencies. This is of course a huge advantage and a very important factor for businesses. The lack of volatility allows them to protect their profits without the risk of sudden value fluctuations, so they can rely on stablecoins as a payment option.

Additionally, as stablecoins like USDT and USDC now move beyond major blockchains like Ethereum, faster, more cost-effective ones like Polygon, Solana, Avalanche, Optimism, and Algorand are also available.

Each blockchain comes with its own advantages; for example, Polygon completes transactions in 2.1 seconds per block and the average transaction cost is only $0.015. At the same time, Solana’s average transaction fees are as low as 0.000014 Solana (SOL) or $0.00189, making it almost 900 times cheaper than Ethereum.

This expansion into various blockchain networks makes stablecoins more accessible and practical for a wider range of businesses. Stablecoins for e-commerce eliminate many of the complications associated with traditional payments, such as chargebacks, delays, and high transaction fees.

Most importantly, cross-border payments, a major challenge for e-commerce retailers, can be significantly simplified using stablecoins. Because stablecoins are not subject to the same conversion and exchange rate fluctuations as fiat currencies, they offer a more seamless way to conduct international transactions.

In short, stablecoins open the door to a global customer base without the challenges of traditional payment systems.

The future of stablecoin adoption in e-commerce

The regulatory framework has been and continues to be one of the biggest challenges in cryptocurrency adoption. But as regulations continue to evolve, more regions are adapting cryptocurrencies to fit their business needs. Stablecoins in particular are well positioned to take a leading role in this transformation. What we are witnessing is the gradual normalization of cryptocurrencies; As I mentioned at the beginning, Singapore is a great example of this.

Digital assets are no longer seen as niche or speculative, but as an integral part of the future of financial dealings.

We are currently witnessing the emergence of new stablecoins; however, we can expect them to be tied to assets other than fiat currencies in the near future. Therefore, the stablecoin ecosystem is expected to expand further across more blockchain networks and these currencies will be used more widely by businesses around the world.

Stablecoins are no longer a distant possibility; They are here and their potential is limitless. They offer businesses a solution to many of the challenges faced in e-commerce by providing a stable, secure and cost-effective alternative to traditional fiat payments and volatile cryptocurrencies. Faster transactions, lower fees and increased accessibility; All of this makes stablecoins a simple way to improve payments and attract new retailers to crypto, not just for e-commerce but for all businesses.

It’s only a matter of time before stablecoin payments become the mainstream option for e-commerce. The future is definitely digital and stablecoins are leading the way.

Vitaly Shtyrkin

Vitaly Shtyrkin is CPO of B2BINPAY, an all-in-one crypto ecosystem for business. Vitaly is an experienced product manager who plays a vital role in shaping product strategy and guiding the development process to align with corporate goals. He has approximately 15 years of experience in the financial market, especially in the fintech sector. He has recently focused on developing robust crypto payment solutions for businesses. As one of B2BINPAY’s key team members, Vitaly is dedicated to improving digital asset management operations. He leads with a strategic vision that aims to create a comprehensive financial ecosystem and promote mainstream adoption of cryptocurrency. Leveraging his extensive expertise, Vitaly is committed to driving innovation and streamlining processes in the industry.