Let’s be honest—waiting three business days for a payment to clear feels like mailing a check by horseback. And those surprise fees? They’re the jump scare of online shopping.
Traditional payments had their moment, but it’s time to retire the drama. Stablecoins such as USDC are stepping in with faster and cheaper borderless payments—minus the nonsense.
So, grab your Phantom wallet and let’s break down why stablecoins are stealing the spotlight, how they leave old-school payment methods in the dust, and how paying with USDC is about to become your new favorite shopping method.
Traditional payments vs. stablecoin payments
Stablecoins provide several key advantages over traditional payment methods, making them poised to play an increasingly significant role in the future of payments.
Here are some of the advantages that set stablecoins apart:
- Lower transaction fees: One of the most compelling reasons for opting to pay with stablecoins such as USDC are lower transaction fees. Credit cards typically charge merchants anywhere from 1.5% to 3% per transaction, and sometimes even more depending on the card type and transaction amount. Additionally, bank wires, especially for international transfers, come with flat fees that can be prohibitively expensive. On the other hand, stablecoin transactions, particularly on efficient blockchains such as Solana, typically incur significantly lower fees. For instance, a transaction on Solana might cost just a few cents. This makes stablecoins especially appealing for businesses and merchants, as they can retain more revenue and reduce operational expenses. Lower fees also benefit consumers, who are more likely to see lower prices or more favorable terms.
- Faster settlements: In a world where time is money, the speed of transactions is a critical consideration. Traditional payment systems, especially cross-border bank wires, can take several days to process. Even domestic transfers through banks can take multiple business days to settle. Similarly, while credit card payments may appear instant to consumers, the underlying settlement between banks and merchants often takes days. Stablecoins offer a distinct advantage in this regard. Blockchain-based transactions using stablecoins such as USDC can be settled within minutes or even seconds, regardless of the time of day or geographic location. This is particularly useful for businesses that need immediate access to funds or individuals looking to send money across borders quickly. Faster settlements also improve liquidity for businesses, enabling them to reinvest or use their funds without waiting for extended periods.
- Cross-border efficiency: International transactions through credit cards or bank wires are often riddled with inefficiencies, high fees, and delays. Currency conversions, intermediary banks, and various regional restrictions can all add to the complexity and cost of cross-border payments. It’s not uncommon for international payments to incur additional fees for currency conversion, and the time delay can be frustrating for both businesses and consumers. Stablecoins such as USDC eliminate many of these hurdles. Since stablecoins are digital assets, they are not confined to any single country's banking infrastructure. This allows for seamless cross-border transfers without the need for intermediaries or expensive currency conversions. As a result, international transactions can be completed at a fraction of the cost and much faster than with traditional methods. This makes stablecoins especially appealing for freelancers, global businesses, and individuals sending remittances.
- Global accessibility: One of the most transformative aspects of stablecoins is their ability to democratize access to the global financial system. In many parts of the world, access to banking services is limited or non-existent, leaving millions of people financially excluded. Traditional payment methods such as bank wires and credit cards are only accessible to those who have bank accounts or credit histories, further limiting opportunities for those in underserved regions. Stablecoins such as USDC provide a solution to this problem. All that’s needed to participate in the global financial network is an internet connection, a smartphone, and a Phantom wallet. With stablecoins, people in even the most remote areas can send and receive payments, access financial services, and engage in global trade without relying on traditional banks. This level of accessibility opens up new economic opportunities for people in developing regions, enabling them to participate in the global economy like never before.
- Financial privacy: Privacy in financial transactions is a growing concern in the digital age. Traditional payment methods, such as credit cards or bank transfers, pass through multiple intermediaries, including banks, payment processors, and financial institutions. Each of these entities collects personal data, leaving a detailed trail of financial activities that can be tracked, analyzed, and potentially misused. Stablecoins, by contrast, offer greater financial privacy. While blockchain transactions are transparent and publicly visible, they do not require users to share personal information with intermediaries. The decentralized nature of stablecoin transactions significantly reduces the number of entities that have access to a user’s financial data. For those who value privacy, this can be a major advantage over traditional payment methods. Moreover, as blockchain technology evolves, there are increasing efforts to integrate privacy-enhancing technologies that allow for private transactions on public blockchains. This could further enhance the privacy benefits of using stablecoins for payments, making them a preferred option for privacy-conscious individuals and businesses.
Make everyday stablecoin payments with Phantom
You can now use your Phantom wallet to make USDC payments on select Shopify stores.
In addition, “Pay with Crypto” from Stripe enables individuals and businesses to accept USDC payments via Phantom, with settlements automatically converted to fiat in their Stripe balance. Currently, Stripe charges a 1.5% fee on each transaction (in USD), positioning it at the lower end of the fee spectrum compared to most credit/debit card fees.
And just recently, PayPal also joined the game with its own “Pay with Crypto” feature, enabling seamless USDC payments via Phantom for individuals and businesses, similar to what Stripe provides.
Getting started with Phantom
Phantom offers browser extensions for Firefox, Chrome, Brave, and Edge, as well as apps for iOS and Android to get started on Solana and other blockchains.
How to share USDC with friends and family
Know someone who might be interested in stablecoins such as USDC? You can share a simple token page with them so they can get involved.
Here's how:
- Open Phantom
- Search for e.g. “USDC” and select the token
- Click the “Share” button
- Copy the link
- Send the link through your preferred app, such as iMessage, Telegram, Instagram, or others
When you share this link, the recipient will receive the official USDC token page from Phantom.
How to bridge tokens to Solana with Phantom?
If you’d like to bridge funds to Solana, use our very own Crosschain Swapper! With our Crosschain Swapper, you can bridge tokens across Solana, Ethereum, Base, and Sui right in your Phantom wallet.
FAQs
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
