Despite being vital to commerce, merchant payment services seldom grab headlines. The most recent development in the crypto world relating to this topic is the recent announcement that PayPal would be offering cryptocurrency services to its user base in 2021. Allowing users to transact on PayPal with cryptos is a strong move forward for adoption and recognition for the fledgling blockchain industry. However, it will still have a difficult road ahead. As a company entrenched in the industry, PlasmaPay is several steps ahead of the competition.
PlasmaPay handles all the development and back-end coding to allow merchants the ability to use multiple cryptocurrencies as quickly as they would cash. It already integrates with the WordPress payment plugin, WooCommerce, giving it access to 3.3 million eCommerce businesses, roughly 30% of all online companies worldwide.
From its Medium, a number of merchant integrations are already available.
- Business Checkout: Businesses are able to accept card payments to their PlasmaPay account on their site
- Crypto Checkout: Firms can embed a module on their page which enables their customers to buy/sell cryptoassets through PlasmaPay
- Wallet-to-wallet: Companies can integrate the PlasmaPay Wallet into their systems, games, and services in order to allow for payment processing and transactions
Furthermore, the PlasmaPay platform can handle all of this with a capacity of handling 160,000 TPS, no fees.
DeFi for Business
But once merchants are set up with PlasmaPay, there are additional benefits to the business. PlasmaPay is more than a set of merchant tools for crypto users. Once in the wallet, payments in crypto can be funnelled into the DeFi ecosystem. This functionality could let a merchant take a percentage of income, lock it into a DeFi lending contract, which would earn it an additional return. This would be a turn-key mechanism allowing merchants to open up an additional revenue stream and boost their bottom line.
Even if a business put only 1% of its profits in a DeFi protocol, that amount could quickly increase in size. As more companies decide to disclose they have Bitcoin on their balance sheets, they may choose to move those DeFi earnings into Bitcoin. The move for entities to include Bitcoin as a reserve was highlighted by the publicly-traded company MicroStrategy, which currently holds 38,250 Bitcoin or 0.182% of the total supply. Other companies like Square and Grayscale Bitcoin Trust have made similar acquisitions over the past year.
Using Bitcoin as a reserve currency or hedge against the current financial markets is a well-known use case in the crypto ecosystem. With the possibility of more adoption of Bitcoin on the horizon, PlasmaPay is implementing features that would allow users to redeem DeFi cryptos for Bitcoin quickly. The HyperLoop Bridge Protocol allows for rapidly converting Bitcoin into “Wrapped Bitcoin,” which can be transacted more rapidly than the native Bitcoin blockchain. Already more than 0.6% of Bitcoin is wrapped, according to Bloomberg. While “Maximalists” may scoff at the idea of migrating to a different chain, wrapped Bitcoin allows it to be used in the DeFi world. Giving long-time Bitcoin holders access to earning passive returns on top of their value is a win for everyone.
Being able to bridge the gap between merchant services and DeFi is not for the faint of heart. Between regulations, regional differences, and volatility, the path ahead is less than clear. But with years of experience and strong fundamentals, PlasmaPay may be able to do it before the big boys can.
Twitter – https://twitter.com/Plasma_Pay
Website – https://plasmapay.com/
Medium – https://medium.com/plasmapay
The Daily Chain
*Disclaimer – PlasmaPay is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.