Ethereum and Stellar-powered blockchains have the potential to revolutionize the credit card system of racking up billions of dollars in point-of-sale fees. Two percent swipe fees have affected all types of sellers, from your every day gasoline pumping, to food delivery orders on demand, and even merchants peddling their wears on flea markets. have lead towards an annual $80 billion giant.
Blockchain consultant Omid Malekan at Citi Ventures touched upon this in an op-ed published by research group Diar, arguing that stablecoins developed on top of blockchains such as Ethereum and Stellar can move much quicker and more transparently than fiat dollars going through ACH or wire payments.
Stablecoins are known to function 24/7, removing bottlenecks and restrictions that’s normally dealt with banking payment settlements that can last up to two to five days.
“To users, the experience is not that different from today, where most payments are a series of ledger entries between third-parties who hold their money. But thanks to the speed, efficiency and transparency of blockchains like Ethereum and Stellar, the dollars involved can be moved faster and cheaper than ever.
There’s great potential for these products to take over global payments, especially once retailers in the US get involved.”
Blockchain-based solutions can offer anyone a more united and comprehensive approach towards replacing credit cards and slashing the percentage swipe-fee business plaguing our industries today. For merchants to switch over towards cryptocurrencies so they may ditch the hefty transaction fees and receive the benefits of payment rails for e-commerce and in-store purchases, digital assets must become a stable source.
Do you think it will become possible one day for all business to switch over to cryptocurrencies?
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