Encryption Payment: The New Darling of E-commerce Giants

Do you remember when people used to ask, "Can you buy a cup of coffee with Bitcoin?" Today, payment with encryption assets is no longer a niche scenario, but an important option for future payment methods viewed by global retail giants.

Recently, a large e-commerce platform officially launched USDC stablecoin payment functionality, with the first batch of merchants starting testing on June 12, expecting a full rollout within the year. At the same time, two globally renowned retail giants are reportedly exploring the issuance of their own stablecoins, and even some travel and airline companies are researching encryption asset payments.

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

The Hidden Cost Killer in E-commerce Over the Years

Payment has always been the invisible cost killer of e-commerce. Whether on major e-commerce platforms or in the global market, every time a credit card, third-party payment, or mobile payment is used, fees are incurred.

For example, mainstream credit cards typically charge a fee of 2-3%. For every item sold, merchants have to pay this portion of "invisible tax." Not to mention the foreign exchange fees and settlement delays for cross-border orders. Traditional payment methods are undoubtedly a burden for digital commerce.

In contrast, stablecoins offer an appealing 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 and retail giants are actively assessing whether they can take control of this value chain themselves.

E-commerce platforms take the lead in action

In the e-commerce platform, a leading company took the initiative. Collaborating with a cryptocurrency exchange, the platform launched a USDC payment feature based on a certain Ethereum Layer 2 network. The operation is as follows:

• Customers pay on the chain using USDC
• Merchants receive fiat currency (automatically converted to USD, etc.)
• Third-party institution processing backend

For customers, the experience remains unchanged; for merchants, there is no need to understand encryption assets, the process is fully automated. The key difference? Lower fees and faster settlement.

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

This also demonstrates the platform's profound insight into Web3 user behavior. Many stablecoin holders do not use credit cards or third-party payments, but have assets available for consumption. The platform aims to convert them into buyers.

Retail Giants Follow Suit

E-commerce platforms are taking the lead, but more symbolically, global retail giants are also beginning to take encryption asset payments seriously. Several mainstream media outlets have reported:

• Two globally renowned retail giants are exploring the issuance of their own stablecoins.
• Travel and airline companies 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 days to seconds
• Enhance customer retention: Users of encryption assets 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 struggled with for years. No wonder everyone is eager to try.

The recent public criticism of stablecoins by global payment providers is no coincidence—the pressure is real.

Compromise Solution of "On-chain Payment + Off-chain Settlement"

It needs to be clarified that actual payment with encryption assets is not entirely decentralized. Taking a certain e-commerce platform's implementation as an example, it adopts a typical "on-chain / off-chain hybrid" model:

• Users select USDC payment on the platform interface (via blockchain network transaction)
• The platform receives payments, and a third party converts them into fiat currencies (such as USD, EUR, JPY)
• Fiat currency is delivered through traditional banking channels.

Therefore, although stablecoins bypass traditional payment networks, the last mile still relies on banks. This is exactly the concern of regulators: do stablecoins evade compliance? Is the clearing process transparent? How are anti-money laundering and customer identification handled?

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

Three Major Driving Factors for E-commerce Giants Betting on Stablecoins

Let's analyze the core driving factors:

1. Cost Anxiety

Merchants are tired of paying credit card and third-party payment fees. Stablecoins offer 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 inherently possesses:

• Automation
• Borderless
• Transparent

Emerging payment protocols can be directly integrated into the order system, making it much simpler than traditional payment SDKs.

3. User Anxiety

The user base for 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 supports innovative reward mechanisms—cashback, NFT benefits, and gamified loyalty programs.

Summary

Can stablecoins reshape the global e-commerce payment landscape?

Check the current signal:

• Surge in Payment Volume: The monthly payment volume of stablecoins has increased from $2 billion two years ago to $6.3 billion, with a global total transaction volume exceeding $94 billion.
• The platform is taking active measures: Several e-commerce and retail giants have launched or are researching stablecoin payments, and the travel industry is 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 act first are laying the foundation for global payments in the next decade.