Is a Blockchain Payment Revolution Imminent? Analyzing the Blockchain Strategies of Payment Giants

Recently, the crypto community has been buzzing about a leading payment service provider considering the launch of its own Blockchain mainnet. As a top global payment technology company, this firm plays a significant bridging role among merchants, acquirers, payment networks, and issuing banks, ensuring that payment transactions are secure and efficient.

If this rumor is true, the company may support stablecoin payments under the basic scenario and deeply integrate its Blockchain mainnet with customer payments and merchant settlements. Ideally, this could completely reshape the existing payment system, including:

1. Bypassing traditional payment networks to achieve direct payments;

2. enables a micro-payment subscription model that is difficult to achieve with traditional systems;

3. creates additional income by managing short-term fund balances.

Currently, the company mainly operates as a payment gateway and acquirer. If it launches its own Blockchain network, it is expected to replace some roles of traditional issuing banks and payment networks, which could become a significant turning point in the payment industry.

Is the rumor true?

Rumors about the company launching a Blockchain mainnet have been raised by several industry observers. Although it has not yet been officially confirmed, multiple sources have mentioned this matter. Similar to a certain social investment platform launching stock tokenization features based on Layer 2 networks, this payment giant could be the next large fintech company to enter the Blockchain field.

The company's mission is to "enhance the internet GDP" and is committed to building a global economic infrastructure to help manage online payments, operations, and growth for startups to large enterprises. From this vision, Blockchain is undoubtedly a highly attractive technology.

In February of this year, the company acquired a stablecoin infrastructure company for approximately $1.1 billion, further strengthening its strategic position in the stablecoin financial infrastructure sector. Subsequently, at the annual conference in May, it officially launched the "Stablecoin Financial Account" service.

This service has been launched in 101 countries, and businesses can:

• Hold two mainstream stablecoins;
• Deposit and withdraw stablecoins through traditional bank channels for USD and EUR transfers;
• On-chain deposits and withdrawals of USDC through multiple mainstream public blockchains.

This means that enterprises can easily use USD stablecoins on the platform and achieve efficient fiat currency deposits and withdrawals through a seamlessly integrated traditional banking system.

In addition, the company acquired a Web3 wallet infrastructure startup in June this year, which offers functions such as creating wallets based on email or SSO login, transaction signing, key management, and Gas abstraction. Combining the existing stablecoin infrastructure with wallet technology to launch its own Blockchain mainnet for achieving system synergy development seems to be a natural progression.

Potential Transformation

Although the company's launch of the blockchain mainnet is still a rumor, if it becomes a reality, it could enable a series of financial services that were previously unattainable. Below are several proposed directions based on existing businesses and potential expansions.

Basic Scenario

1. Merchant Stablecoin Account Integrated with Blockchain Mainnet

The company currently offers stablecoin account services in multiple countries, allowing merchants to hold mainstream stablecoins and access them through traditional banking systems or on-chain networks. If a proprietary blockchain is launched, it is expected to further support access through its own chain, improving operational efficiency and expanding application scenarios.

2. Stablecoin Settlement Options

As a payment service provider, the company often collaborates with acquirers or takes on settlement functions itself. If it introduces its own Blockchain, merchants may choose to settle sales revenue in US dollar stablecoins, which is particularly significant for merchants with high demand for US dollars but limited access.

3. User Wallet Service

By acquiring a Web3 wallet infrastructure company, the payment giant has gained the ability to create wallets for users. Although the current focus is on the merchant side, if combined with its own Blockchain and wallet services, it could provide individual users with an easy-to-use wallet that supports payments and other Web3 financial activities.

4. Customer Stablecoin Payment Options

Currently, the company mainly supports traditional payment methods such as credit cards and bank accounts. If Web3 wallets are supported, customers will be able to choose to pay with stablecoins.

Ideal scenario

1. Direct Payments Between Customers and Merchants

Payments made through credit cards or bank accounts rely on traditional financial networks. However, if users can pay merchants directly with stablecoins, it is expected to bypass issuing banks and payment networks, significantly enhancing settlement speed and reducing costs. However, it is important to note that the on-chain payment cancellation or refund mechanism is relatively complex, and a sound safeguard mechanism needs to be introduced.

2. Subscription services based on micropayments

Blockchain has micro-payment and streaming subscription capabilities. Currently, subscriptions are mostly billed monthly or annually, while the new blockchain system can support a billing model based on minutes, enabling automatic settlement based on actual usage time, bringing a new business model for service providers and consumers.

3. The use of DeFi for short-term deposits

The current payment system has a long settlement cycle, partly due to the need to deal with fraud, cancellations, and refunds. Even if customers are allowed to pay merchants directly with stablecoins, some funds may still need to stay on the Blockchain for a short period.

These short-term deposits will form a massive liquidity pool, which can be used for DeFi protocols, lending markets, or bond investments, thereby enhancing capital efficiency and generating additional returns.

Looking to the Future

The rumors about this payment giant launching its own Blockchain mainnet are indeed noteworthy. So far, most payment giants have only treated Blockchain and stablecoins as additional features to their traditional businesses. If the company truly releases its own Blockchain mainnet, it could mark an important beginning for a paradigm shift in payment systems.

In the past, the company's main role was as a payment gateway or acquirer, but once the Blockchain is built, it may simultaneously take on the functions of both issuing banks and payment networks at the technical level. More importantly, the new Blockchain system has the potential to comprehensively enhance payment efficiency and expand new features that traditional systems find difficult to reach, such as micro-payment-based streaming subscriptions and automated management of short-term idle funds.

Currently, payment systems are on the brink of a blockchain-driven wave of innovation. Whether the rumors are true or not, any blockchain-related actions could have a profound impact on the payment industry's landscape. It remains to be seen whether we will usher in an era where blockchain reshapes payment infrastructure.