3 PAYMENT METHOD SCORECARD: STABLECOIN
Cost
situations to date of merchants holding stablecoin in their treasury, and to do so could require a large uplift in integration for merchants. Consumer/Bank Costs Rewards Rewards are not common for stablecoin payments. Interest Payment on Debt Currently, stablecoin operates more as debit transactions than borrowing money, so usually no debt is being accumulated. Surcharging There is limited evidence on surcharging for stablecoin transactions. However, if retail begins more widely accepting, there is the possibility the gas fees could be passed on to the consumer.
Metrics
Weight Score
Average Fee Level
15% 3.0 10% 5.0
Competitive Leverage
Competition within Payment Method
15% 2.0
Fixed Cost Rewards
10% 4.0 15% 1.0 15% 5.0 20% 5.0
Interest Payment on Debt
Surcharging TOTAL SCORE
3.6
Merchant Costs Average Fee Level According to CMSPI’s Cost of Payments Analysis, stablecoin’s average cost is 1.87%. Competitive Leverage Merchants don’t feel the pressure to accept stablecoins to remain competitive. Competition within Payment Method Depending on which service provider the user employs, various blockchain networks are available. The blockchains offer different fees to use their blockchain to send the stablecoin transaction which creates competition. Fixed Costs With the growth of stablecoin market capitalization, many crypto payment processors have entered the market to help merchants indirectly accept digital assets from consumers. Companies like BitPay, Coinbase and Flexa provide various options for merchants to start accepting crypto including basic websites and apps to fully bespoke API code for merchants to create a unique customer experience. 877 878 879 However, to date most of these providers only allow merchants to accept stablecoin indirectly, i.e. they will convert stablecoin to fiat currency before settling with the merchant. We are not aware of
203
Powered by FlippingBook