Stablecoin Payments: A New Choice for E-commerce Giants

Recently, crypto asset payments have gradually evolved from niche scenarios into the "future payment method" in the eyes of global retail giants. This trend has sparked widespread attention and discussion in the industry.

Recently, a large e-commerce platform officially launched the USDC stablecoin payment feature, with the first batch of merchants starting testing on June 12, and a full rollout expected within the year. Meanwhile, several retail giants are reportedly exploring the issuance of their own stablecoins, and even some travel and airline companies are researching cryptocurrency payment solutions.

What is the driving force behind this wave? What industry pain points do stablecoins address? Should traditional financial institutions feel nervous? Let's dive deep into the core reasons why e-commerce is embracing crypto assets and explore whether this is merely a temporary trend or an inevitable choice for the industry.

The Payment Dilemma Faced by E-commerce

For a long time, payment has been the invisible cost killer in the e-commerce industry. Whether on large e-commerce platforms or in the global market, using a credit card, third-party payment tools, or mobile payments incurs additional fees.

Mainstream credit card companies usually charge a fee of 2-3%. This means that merchants have to pay this "invisible tax" for every item sold. Not to mention that cross-border orders also incur foreign exchange fees and settlement delays. Traditional payment methods have undoubtedly become a significant obstacle to the development of digital commerce.

In contrast, stablecoins offer some compelling advantages:

• Real-time settlement (based on blockchain transactions)
• Low transaction costs (reduce intermediary fees)
• Cross-border compatibility (simplifying foreign exchange operations)
• Programmability (easy integration with logistics and fulfillment systems)

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

Pioneer of E-commerce Platforms

Among many e-commerce platforms, one platform took the lead in taking action. This platform collaborated with a well-known cryptocurrency exchange to launch a USDC payment function based on the Ethereum Layer 2 network. Its operation is as follows:

• Customers make payments on the chain using USDC
• Merchants receive fiat currency (automatically converted to USD, etc.)
• Handled jointly by the stablecoin issuing institution and the platform payment system.

For customers, the payment experience remains largely unchanged; for merchants, there is no need to have an in-depth understanding of crypto assets, and the entire process is automated. The most critical difference lies in lower fees and faster settlement speeds.

To attract users, the platform even offers a 1% USDC cash back incentive. Paying with stablecoins also yields returns, which undoubtedly challenges the status of traditional payment channels.

This initiative also demonstrates the platform's deep insights into Web3 user behavior. Many stablecoin holders may not be accustomed to using credit cards or traditional third-party payments, but they do have disposable assets at hand. The platform aims to convert these users into active buyers.

Retail giants are following suit

Although the aforementioned e-commerce platforms took the lead, what is more symbolic is that global retail giants are also starting to take cryptocurrency payments seriously. Several mainstream media outlets reported:

• The two largest retailers in the world are exploring the issuance of their own stablecoin (similar to a certain social media giant's digital currency plan from years ago)
• Some well-known travel platforms and airlines are also studying cryptocurrency asset payments (to simplify cross-border travel settlements)

Why have these traditional giants suddenly gone "all out"?

• Reduce transaction costs: Stablecoins can bypass traditional acquiring institutions, significantly reducing fees.
• Accelerated settlement: reduces settlement time from several days to a few seconds.
• Improve customer retention: Cryptocurrency asset users are more likely 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 been struggling to overcome for years. No wonder major companies are eager to try them out.

It is worth noting that the recent public criticism of stablecoins by global payment providers is no coincidence – they are indeed feeling the pressure.

Practical Operation of Cryptocurrency Asset Payments

It is important to clarify that actual cryptocurrency asset payments 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:

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

Therefore, although stablecoins bypass traditional credit 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? Is the clearing process transparent? How are anti-money laundering and KYC handled?

Fortunately, the relevant platforms and institutions have done their homework, and their implementation methods align with the current regulatory expectations for stablecoin compliance in the United States.

The Deep Reasons Behind E-commerce Giants Betting on Stablecoins

By analyzing the core driving factors, we can identify three major industry anxieties:

1. Cost Anxiety

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

2. Technology Stack Anxiety

Web2 platforms are still constrained by traditional banking systems. In contrast, Web3 payment infrastructure is inherently equipped with:

• Automation
• Without Borders
• Transparent

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

3. User Anxiety

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

Future Outlook

Can stablecoins reshape the global e-commerce payment landscape? Let's take a look at some key signals currently:

• Surge in payment volume: The monthly payment volume of stablecoins has increased from 2 billion USD two years ago to 6.3 billion USD, with a total global transaction volume exceeding 94 billion USD.
• The platform is taking proactive action: Many e-commerce and retail giants have already launched or are researching related solutions, and tourism industry giants are also actively preparing.
• The trend is obvious: the acceptance of crypto assets is rising, cross-border trade requires efficient settlement, and traditional payment systems are facing challenges.

If Bitcoin is digital gold, then stablecoins are becoming digital dollars. E-commerce players who act first are laying the foundation for global payments in the next decade. This transformation has just begun, and we will watch closely the far-reaching impact it will have on the entire industry.