Encryption Asset Payment: A New Choice for E-commerce Giants

In recent years, encryption asset payments have evolved from a niche concept to the "future payment method" in the eyes of the global retail industry. This trend is rapidly changing the payment landscape of e-commerce.

Recently, a large e-commerce platform officially launched the USDC stablecoin payment function, with the first batch of merchants already testing it, and a full rollout is 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 researching encryption asset payment solutions.

What is the driving force behind this wave? What pain points do stablecoins actually address? Should traditional financial institutions be concerned? Let's delve into the core reasons for e-commerce embracing encryption assets and see if this is just a temporary trend or an inevitable development.

The Payment Dilemma in E-commerce for Many Years

Payment fees have always been the invisible cost killer in the e-commerce industry. Whether on large e-commerce platforms or online stores around the world, every time credit cards, third-party payment tools, or mobile payments are used, additional fees are incurred.

Mainstream credit card companies typically charge a fee of 2-3%. This means that merchants have to pay this portion of the "invisible tax" for every item sold. Cross-border orders also face additional foreign exchange fees and settlement delays. Traditional payment methods have undoubtedly become a major obstacle to the development of digital commerce.

In contrast, stablecoins offer some compelling advantages:

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

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

A certain e-commerce platform is the first to试水 USDC payment

Among many e-commerce platforms, a well-known platform took the lead in taking action. By collaborating with a cryptocurrency exchange, the platform launched a USDC payment feature based on a layer two network. Its operation is as follows:

• Customers complete payments on the chain using USDC.
• Merchants receive fiat currency (automatically converted to USD, etc.)
• The backend is handled jointly by the stablecoin issuer and the platform's payment system.

For customers, the payment experience remains largely unchanged; for merchants, there is no need to understand the complexities of encryption assets, as the entire process is fully automated. The biggest difference lies in lower fees and faster settlement speeds.

To attract users, the platform even offers a 1% USDC cash rebate incentive. Paying with stablecoins also earns cashback, which undoubtedly poses a direct challenge to traditional payment channels.

This initiative also reflects the platform's deep insights into Web3 user behavior. Many stablecoin holders do not use traditional credit cards or third-party payment tools, but they possess disposable encryption assets. The platform aims to convert these users into active buyers.

Retail giants are following suit

As this e-commerce platform takes the lead, it is even more symbolic that global retail giants are also starting to take cryptocurrency payments seriously. According to reports from several mainstream media:

• The two largest retailers in the world are exploring the issuance of their own stablecoins.
• Some well-known travel platforms and airlines are also researching encryption asset payment solutions to simplify cross-border travel settlement.

Why are these traditional giants suddenly showing such great interest in encryption payments?

• Reduce transaction costs: Stablecoins can bypass traditional acquiring institutions, significantly reducing expenses.
• Accelerated settlement: shortened from several days to a few seconds
• Enhance customer retention: encryption asset users are more inclined to support merchants compatible with their digital wallets.
• Bypass traditional bank delays: No need to wait for lengthy bank transfers or credit approval processes.

In short, stablecoins provide solutions to several long-term pain points that e-commerce has faced for years. It's no wonder that major platforms are eager to try.

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

The Practical Operating Model of Encryption Asset Payments

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

• The user selects USDC payment on the platform interface (transactions are completed through a specific blockchain network)
• The platform receives payments, and the stablecoin issuer converts them into fiat currencies (such as USD, EUR, JPY)
• Fiat currency is delivered to merchants through traditional banking channels.

Therefore, although stablecoins avoid traditional payment card networks, the last mile still relies on the banking system. This is precisely the issue that regulators are closely monitoring: do stablecoins circumvent compliance requirements? Is the settlement process transparent enough? How are issues such as anti-money laundering (AML) and know your customer (KYC) handled?

Fortunately, the platform and its partners have adequately prepared in these areas, and their implementation aligns with the current regulatory expectations for stablecoin compliance in the United States.

The Deep Reasons Behind E-commerce Giants Betting on Stablecoins

Let us analyze the core factors driving this trend:

1. Cost Pressure

Merchants are tired of constantly 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 outdated banking systems. In contrast, Web3 payment infrastructure is inherently equipped with:

• Highly automated
• Borderless nature
• Transparency

Some emerging payment protocols can directly interface with order systems, making them simpler and more efficient than the SDKs of traditional payment service providers.

3. Changes in User Demographics

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

Looking to the Future

Can stablecoins truly reshape the global e-commerce payment landscape? Let's take a look at some current key 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 total global transaction volume exceeding $94 billion.
• The platform is taking active steps: A major e-commerce platform has launched relevant features, several retail giants are conducting research, and leaders in the tourism industry are also actively preparing.
• The trend is clear: the acceptance of encryption assets is continuously rising, the demand for efficient settlement in cross-border trade is increasing, while traditional payment systems are gradually becoming a bottleneck.

If Bitcoin is digital gold, then stablecoins are becoming strong contenders for digital dollars. Early-moving e-commerce players are laying the foundation for the global payment system of the next decade. This transformation has just begun, and we look forward to its future development.