Stablecoins improve payments for e-commerce and bring new retailers to crypto | Opinion

Stablecoins are becoming a key solution for businesses looking to simplify and enhance payment processes. In Singapore alone, the stablecoin payment value reached $1 billion a few weeks ago. This is because now stablecoins are seen as a better alternative to traditional fiat payments and volatile cryptocurrencies. They have already become a mainstream digital tool for everyday use—from payments to shopping—and the e-commerce space is no exception. 

But how exactly will they transform the e-commerce industry? Let’s break it down.

The current state of crypto payments in e-commerce

Cryptocurrency payments are gaining momentum all over the world. Recent studies show that 64% of consumers are interested in using cryptocurrencies and stablecoins as payment options. Looking at $4.2 billion in crypto payments processed via Visa crypto-backed cards in the first fiscal quarter of 2023, this becomes even more evident.

Among younger generations, the adoption rate is even higher: 40% of people aged 18-35 plan to use cryptocurrency, and 10% intend to use it regularly. Additionally, 31% of them expect to make consistent crypto payments in the next 12 months. On the business side, around 74% of retailers say they plan to start accepting crypto payments in the next two years.

Countries like the US, Canada, Australia, the EU, Israel, and the Central African Republic are now leading the way; however, new players like China and Russia have already started exploring unified crypto regulations through the BRICS alliance. 

However, despite the progress and big indicators, the adoption is still uneven. However, it is clear that their widespread use is inevitable, mainly because of stablecoins such as Tether (USDT) and USD Coin (USDC).

Stablecoins: A game-changer for e-commerce payments

Stablecoins can easily become the most convenient payment method. Why? Speaking briefly and clearly about the advantages of stablecoins, I can highlight that they offer:

• faster and more secure payment option;
• simplified and stable entry point into digital payments;
• eliminated conversion and exchange rate fluctuations.

Sounds great, right? The last advantage alone could drive significant crypto adoption among businesses operating in multiple markets.

Also, let’s put ourselves in the shoes of the e-commerce business owner for a second. In e-commerce, payments need to go somewhere. Imagine you are processing a lot of orders, and the payments keep going to your registered fiat account. Wouldn’t it be much more convenient if they were sent directly to your crypto wallet? Not only is it a straight transaction, but it also gives more control over the funds, streamlining the whole process.

To be more precise

Since stablecoins are tied to fiat currencies like the US dollar or Euro, they are less volatile compared to other forms of cryptocurrency and, as their term suggests, more stable. This is, of course, a huge advantage and a crucial factor for businesses. The lack of volatility allows them to lock in profits without the risk of sudden value fluctuations, so they can rely on stablecoins as a payment option.

Also, as now stablecoins like USDT and USDC have expanded beyond just major blockchains like Ethereum, they are available on faster, more cost-effective ones such as Polygon, Solana, Avalanche, Optimism, and Algorand. 

Each blockchain comes with its own set of benefits—Polygon, for example, completes transactions in 2.1 seconds per block with an average transaction cost of just $0.015. At the same time, Solana’s average transaction fees are as low as 0.000014 Solana (SOL), or $0.00189, which makes it nearly 900 times cheaper than Ethereum. 

This expansion into various blockchain networks is making stablecoins more accessible and practical for a broader range of businesses. For e-commerce, stablecoins eliminate many of the complications associated with traditional payments, such as chargebacks, delays, and high transaction fees.

Most importantly, cross-border payments—a major challenge for e-commerce retailers—can be significantly simplified using stablecoins. Since stablecoins are not subject to the same conversion and exchange rate fluctuations as fiat currencies, they offer a more seamless way to handle international transactions. 

In short, stablecoins open the door to a global customer base without the hassles of traditional payment systems.

The future of stablecoin adoption in e-commerce

The regulatory framework has been and is one of the biggest challenges in crypto adoption. However, as the regulations continue to evolve, more regions are adapting cryptocurrencies to fit their business needs. Stablecoins, in particular, are well-positioned to take a leading role in this transformation. What we are witnessing is the gradual normalization of cryptocurrencies—Singapore, as I mentioned in the beginning, is a great example of it.

Digital assets are no longer viewed as niche or speculative but as integral to the future of financial settlements.

We are already witnessing the emergence of new stablecoins; however, in the near future, we can expect them to possibly be tied to assets other than fiat currencies. Hence, the further expansion of the stablecoin ecosystem across more blockchain networks and broader use of these currencies by businesses around the world is expected. 

Stablecoins are no longer a distant possibility—they are here, and their potential is unlimited. They provide businesses with a solution to many of the challenges faced in e-commerce by offering a stable, secure, and cost-effective alternative to traditional fiat payments and volatile cryptocurrencies. Faster transactions, lower fees, and increased accessibility—all these make stablecoins a no-brainer way to improve payments for not only e-commerce but all businesses and bring new retailers to crypto.

It is only a matter of time before stablecoin payments become a mainstream option for e-commerce. The future is definitely digital, and stablecoins are leading the way.

Vitaly Shtyrkin

Vitaly Shtyrkin is the CPO at B2BINPAY, an all-in-one crypto ecosystem for business. Vitaly is an experienced product manager who plays a vital role in shaping product strategy and guiding the development process to ensure alignment with organisational goals. He has almost 15 years of experience in the financial market, particularly within the fintech sector. He has recently focused on developing robust crypto payment solutions for businesses. As a key team member at B2BINPAY, Vitaly is dedicated to enhancing digital asset management operations. He leads with a strategic vision that aims to create a comprehensive financial ecosystem, promoting the mainstream adoption of cryptocurrency. Leveraging his extensive expertise, Vitaly is committed to driving innovation and streamlining processes within the industry.