Blockchain: Solana Labs launches its Solana Pay digital payment platform

Solana Labs, the creator of Ethereum’s high-speed programmable blockchain, started February with a bang with the launch of Solana Pay. This payment platform intends to provide merchants and customers with a new set of decentralized payment standards and protocols designed to allow direct acceptance of stablecoins, such as US Dollar Coins (USDC), at point of sale (POS) and online.

According to the company, Solana Pay is expected to allow merchants to accept and move any amount of Solana’s blockchain-enabled stablecoins, at any time of day, anywhere in the world, but with very low transaction fees, measured in fractions of a cent. The company claims that traders can have real-time access to their money, with increased working capital management capacity, liquidity and liability protection, and direct access to their money in seconds, with no intermediaries and no retention period or bank transfer fees.

Solana’s management believes that by establishing a direct connection with a blockchain wallet address, merchants can unlock a two-way communication channel with their customers, which will allow them to perform transactions such as sending offers, granting NFTs and loyalty bonus.

Some advantages for traders

The competitive advantage of Solana Pay is that its decentralized payment structure is extremely fast thanks to the Solana blockchain, which offers a scalability of 65,000 transactions per second (TPS), an “almost instant” settlement of 400 milliseconds and incredibly low fees of $ 0.00025 per transaction. In comparison, bitcoin can only process seven TPS and Ethereum only 13 TPS.

According to Solana’s senior management, the initial development of Solana Pay came from a variety of sources, including Solana Labs, the global fintech firm Circle Internet Financial, the Phantom digital wallets, and Slope Wallet, the Citcon mobile payment processor, the cryptocurrency exchange FTX and the national car rental company Bandago Van Rental.

Another competitive advantage of Solana Pay is its ease of use, as simple as activating a barcode at a merchant’s office or at the point of sale. So, for example, using Solana Pay SDK, a merchant can initiate a peer-to-peer connection with the millions of cryptocurrency wallet customers who can pay in stablecoins like USDC or other blockchain-enabled cryptocurrencies. Solana, adds the company. It remains to be seen what ways Solana can bring to the table to entice larger merchants to adopt its new payment platform, as well as more point-of-sale providers and ecommerce platforms.

Source: ZDNet.com

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