Why Stablecoin Payment Gateways Such as Polygon are Set to Redefine 21st-Century Banking

Stablecoins are quickly emerging as yet another means to pay for traditional goods and services. Blockchain-based payment gateways such as Polygon are likewise providing highly economical alternatives to traditional (and often outdated) infrastructure. They are even beginning to give fiat a run for its money (pun intended). 

So, will these methods come to represent the next great leap forward? While the verdict is still out, a growing number of industry analysts firmly believe that the world of banking as we know it will soon be shaken to its fundamental pillars, and this is not a bad thing.

The Faults with Fiat

Fiat still serves a very real purpose in terms of brick-and-mortar society. The only issue here is that society has already begun to migrate into the digital domain. This is when the faults of traditional transactions are laid bare. Take a look at a handful of drawbacks that buyers and sellers regularly experience:

• Frustratingly sluggish processing times.
• Payment backlogs resulting in a greater use of limited in-house resources.
• Higher online cart abandonment rates due to third-party fees.
• Difficulty integrating fragmented point-of-sale systems.

Let us also not fail to mention technical concerns including FX (Forex) exchange rates, and inflation due to the actions taken by central banks.

Simply stated, astute consumers have been searching for ways to avoid these pitfalls. This is when the power of stablecoins begins to make its presence known. An example can help to reinforce this observation.

Online Gaming as a Virtual Barometer

The online casino community has often been used to track larger macroeconomic trends. Past examples include the growing issue of identity theft, the rise of e-wallets during the 2010s, and (most recently) hybrid payment platforms capable of accepting cryptocurrencies alongside fiat. What are some of the reasons behind this trend?

Point, Click, and Process

Functionality is a key selling point of stablecoin payment solutions. Not only is it easy to perform transactions, but customers will no longer be forced to wait an inordinate amount of time for their request to be processed. This is convenient for online merchants, and it helps to guarantee higher conversion rates. Fiat transactions have always suffered from these issues, and it is only logical that consumers are keen to leverage the possibilities offered by blockchain-based payments.

Say Goodbye to the Middleman

Processing fees have been the bane of the traditional banking ecosystem for decades. Unfortunately, these became even more pronounced as the number of digital transactions increased. Many fees are largely the results of intermediary institutions involved with transfers; even if they tend to occur behind the scenes. Not that we are not only referring to the commissions that customers may need to face. There are also plenty of surcharges passed on to the merchant. 

Blockchain-based settlement layers such as Polygon have taken the middleman out of the equation. This results in much lower fees, often less than $0.01 per transaction. Furthermore, a lack of intermediaries results in processing times measured in a matter of seconds. Both of these features are ideally suited for everyday purchases, microtransactions, and decentralized applications (dApps). 

24/7 Access

Unlike banks, building societies, and similar real-world institutions, the stablecoin community never sleeps. It is not concerned with borders, and fiat exchange rates have little observable influence. Consumers can now navigate to a specific website, purchase a product within seconds, and remain confident that the transaction is completed. This is a major windfall when referring to the international scope of the e-commerce community. It also enables vendors to expand their services far beyond their physical footprints. As all blockchain transactions are contained within a decentralised ledger, transparency is taken to another level. This is likewise excellent news for anyone who wishes to monitor the status of their transaction in a real-time scenario.

Still, it is wise to note that fiat transactions are expected to remain in place. Stablecoins simply represent an extremely useful alternative capable of catering to the needs of the next generation of consumers. Vendors who want to remain ahead of the game have already begun implementing hybrid payment solutions, and gateways such as Polygon will continue to gain momentum.

This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.