2 PAYMENT METHOD PROFILES: STABLECOIN
Supply Chain Structure In the simplest structure, though not necessarily the easiest for merchants given the complexities, a merchant may create a crypto wallet address where consumers would directly transfer funds – no real middleman needed. However, this emerging payment method has many nuances leading third-party service providers to provide expertise and bridge the knowledge gap. While not common enough to provide a standard supply chain structure, the following are a few services that are being offered to merchants to encourage stablecoin payments. • Gift Card Provider – providers like BitPay offer consumers the option to purchase gift cards for select merchants using cryptocurrency 746 • QR Codes – providers like Flexa offer QR codes merchants can display to consumers to facilitate digital asset transactions 747 • New Payment Method – providers like Stripe are adding stablecoin payments as an option to their services 748 Merchant Cost Considerations Merchants have a lot to consider regarding the costs of accepting stablecoin. While not very common, merchants could own a crypto wallet which consumers would pay with directly, just like if they were sending stablecoin to their friends and family. Costs in this instance would include transaction fees depending on the crypto platform and blockchain network being used. Depending on which currencies the merchant holds in their treasury, accepting various stablecoins may require converting to the desired currency which also imposes cost through exchange rates. However, if stablecoins were used to make business-to-business payments, the merchant could keep the payment on-chain and use the stablecoin to pay suppliers and avoid various transfer fees. A more likely route for merchants to begin accepting stablecoins as a payment method is through a third- party service provider. These providers range from payment processing platforms like PayPal and Stripe, to crypto wallets like Crypto.com, to new platforms entering the scene like BitPay and Flexa. Providers including BitPay, Flexa and PayPal accept crypto from consumers then convert and settle the payment as cash to the merchant in the preferred currency. 749 750 751 Default fees can be dependent on various factors including monthly number of transactions (BitPay), 752 transaction amount (PayPal), 753 or network availability (BVNK), 754 while others charge a flat fee per transaction (Coinbase, 755 Flexa, 756 Stripe 757 ). Fees can range from 1-2%, $0- 5+, or some combination of the two (BitPay 758 – 1-2% + $0.25).
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