Encryption Asset Payment: The Future Choice of E-commerce Giants?

Once upon a time, people were still discussing whether they could buy a cup of coffee with Bitcoin. Today, encryption asset payments have become the "payment method of the future" in the eyes of global retail giants, no longer limited to niche scenarios.

Recently, a large e-commerce platform officially launched the USDC stablecoin payment feature, with the first batch of merchants starting testing on June 12, expecting a full rollout within the year. Meanwhile, two major retail giants are reportedly exploring the issuance of their own stablecoins, and even tourism giants and airlines are researching encryption asset payment solutions.

What is driving this surge? What pain points do stablecoins address? Should traditional financial institutions be wary? Let’s delve into the core reasons why e-commerce is embracing encryption assets: is this a temporary trend or an inevitable choice?

The Invisible Cost Killer of E-commerce Over the Years

Payment fees have always been an invisible burden in the e-commerce industry. Whether on large e-commerce platforms or in global markets, every time credit cards, third-party payments, or mobile payments are used, there will be additional costs.

Mainstream credit cards typically charge a fee of 2-3%. This means that for every item sold, merchants need to pay this part of the "invisible tax." Not to mention that cross-border orders also involve foreign exchange fees and settlement delays. Traditional payment methods have undoubtedly become a bottleneck for the development of digital commerce.

In contrast, stablecoins offer a quite attractive alternative:

• Real-time settlement (on-chain transaction)
• Low transaction costs (no intermediary fees)
• Cross-border compatibility (no foreign exchange hassle)
• Programmability (can be integrated with logistics and fulfillment systems)

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

A certain e-commerce platform takes the lead in action

In the e-commerce platform, a leading company took the initiative. By collaborating with a well-known cryptocurrency exchange, the platform launched a USDC payment feature based on the Ethereum Layer 2 network. Its operation is as follows:

• Customers use USDC for payment on the blockchain.
• Merchants receive fiat currency (automatically converted to USD, etc.)
• The backend is handled and converted by a professional organization.

For customers, the experience is almost unchanged; for merchants, there is no need to understand encryption assets, as the entire process is completed automatically. The key differences are: lower fees and faster settlement speeds.

To attract users, the platform even offers a 1% USDC cash back incentive. Paying with stablecoins can also earn money, which directly challenges the status of traditional payment channels.

This initiative also demonstrates the platform's deep insight into Web3 user behavior. Many stablecoin holders are not accustomed to using credit cards or traditional third-party payments, but they have substantial assets available for spending. The platform aims to convert this segment of users into active buyers.

Retail giants are following suit

The e-commerce platforms that take the lead are certainly eye-catching, but what is more symbolic is that global retail giants are also beginning to take encryption asset payments seriously. Many mainstream media have reported:

• Two major retail giants are exploring the issuance of their own stablecoins (similar to a certain social media giant's digital currency plan from years ago)
• Major players in the tourism industry and airlines are also studying encryption asset payments (to simplify cross-border travel settlements)

Why are traditional giants suddenly "going all out"?

• Reduce transaction costs: Stablecoins bypass acquiring institutions, significantly reducing fees.
• Accelerated settlement: reduced from several days to a few seconds
• Improve customer retention: encryption asset users are more inclined to support merchants compatible with their wallets.
• Bypass traditional bank delays: no need to wait for bank transfers or credit approvals

In short, stablecoins address several long-standing pain points that e-commerce has struggled with for years. It's no wonder that major platforms are eager to try.

It is no coincidence that global payment providers have recently publicly criticized stablecoins — there is indeed pressure.

On-chain payments + off-chain settlements: Compromise solution

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

• Users select USDC payment on the platform interface (transactions completed through a specific blockchain network)
• The platform receives payments, and professional institutions convert them into fiat currencies (such as USD, EUR, JPY)
• Fiat currencies are delivered through traditional banking channels.

Therefore, although stablecoins bypass traditional credit card networks, the last mile still relies on the banking system. This is exactly the issue that regulators are closely monitoring: do stablecoins circumvent compliance? Is the clearing process transparent? How are anti-money laundering and identity verification handled?

Fortunately, the e-commerce platform and its partners have done their homework, and their implementation aligns with the current regulatory expectations for stablecoin compliance in the United States.

The Three Major Reasons E-commerce Giants Bet on Stablecoins

Analyze core driving factors:

1. Cost Pressure

Merchants are tired of paying high credit card and third-party payment fees. Stablecoins offer a way to bypass intermediaries, reduce costs, and accelerate cash flow.

2. Technology Stack Upgrade Requirements

Web2 platforms are still bound by traditional banking systems. In contrast, Web3 payment infrastructure inherently possesses:

• Automation
• Without Borders
• Transparent

The new generation payment protocol can be directly integrated into the order system, making it much simpler and more efficient than traditional payment SDKs.

3. User Base Expansion

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 also supports innovative reward mechanisms — cash back, NFT benefits, gamified loyalty programs, etc.

Outlook

Can stablecoins reshape the global e-commerce payment landscape?

Check the current signal:

• Surge in payment volume: The monthly payment volume of stablecoins 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 action: a major e-commerce platform has launched, retail giants are researching, and tourism industry giants are also preparing.
• The trend is obvious: the acceptance of encryption assets is on the rise, cross-border trade requires efficient settlement, and traditional payment systems have become a bottleneck.

If Bitcoin is digital gold, then stablecoins are becoming digital dollars. E-commerce players who take the lead are laying the foundation for global payments in the next decade.