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Solana Pay launches in crowded digital payment space


On February 1, Solana Labs announced the launch of Solana Pay in a joint collaboration between Circle, Checkout.com, Citcon, Phantom, FTX and Slope. The announcement stated that the premise behind the new service is that the actual payment and the underlying technology “turn from a necessary service program to a true peer-to-peer communication channel between the merchant and the consumer.” The app allows users to send stablecoins such as USDC from their crypto wallets directly to a trader’s account, where they are settled almost instantly with very low transaction fees. The next stage of development will allow traders to return crypto assets to consumers, “which will open up new trading opportunities that were not possible before,” said Sheraz Shere, head of payments for Solana Labs. Shere previously worked at American Express and Google and helped launch Wallet and Google Pay. Into The Payments World Solana Pay enters an overcrowded ecosystem of existing payment apps where tech giants Apple and Google currently dominate. There are also a number of other major payment players like PayPal, which is reportedly working on its own token, Venmo, Wise, Cash App and Stripe. However, very few of these support native cryptocurrencies, so Solana wants to bridge that gap and go beyond just paying with crypto. Shere explained, “Traders have been able to accept crypto for years, but acceptance usually means settling into unstable currencies, swapping one middleman for another and sticking square pegs and round holes together.” He added that merchants should also reap the benefits of decentralized crypto payments, such as “network cost savings, DeFi revenue generation, no liability for fraud, instant settlement, and customer relationship ownership.” Solana Pay will mainly work with USDC but will also enable other network related crypto assets such as SOL, FTT, SRM. SOL prices are up 4% on the day to hit $110 at the time of writing, but the asset was still trading 58% lower than its all-time high on Nov. 6. Solana Performance Woes Solana is often referred to as an “Ethereum killer” due to its higher throughput, but it has also suffered some network outages recently, which makes this name highly questionable. At the end of January, the network was down for 48 hours, caused by arbitration bots spamming the system. This followed a DDOS attack that knocked it out earlier in the same month. Solana also went down in September and December last year due to similar overload issues, so maybe it’s not quite ready to “kill” Ethereum yet. SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and get $100 Free and 10% Off Fees on Binance Futures First Month (Terms and Conditions). PrimeXBT Special Offer: Use this link to register and enter POTATO50 code to get 25% off trading fees.
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