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@vercelabloh
This might sound like a weird question but bear with me please: Why do we want USDC retail payments (esp. in countries like the US?) Not benefits. I'm talking about bigger strategic goals here. What happens when daily consumer payments happen w/ stablecoins? https://x.com/jonwu_/status/1823367216797986854
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jesse.base.eth 🔵
@jessepollak
1. fees for small businesses should go from ~3-4% to <1%. the average small business *total* margin is 3-6%, so this is a doubling of their margin. 2. choice for small businesses (POS, accounting, tax) and consumers (wallets, rewards) should dramatically increase bc it's all in an open ecosystem vs. locked into a specific platform 3. UX for small businesses and consumers should get 10x better bc we'll have so many more people building great solutions on top of the open platform
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Philip Decker
@psd
Yes. All merchants would save on cc fees. Buuut….payments is all about trust and incentives. Crypto obvs lacks trust, but table that. Incentives drive action. The discount rate (ie CC fee merchants pay) is what funds rewards/points, and points drive consumer usage of CCs. Flywheel. Take away the fees and you take away points and then you need to find a new incentive to get people to pay with ur product. Plus, merchants want high spending consumers. CCs with hefty rewards bring those high value consumers to the merchants door. Rn we need to first build trust with consumers/merchants, and properly incentivize people to pay with crypto.
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Philip Decker
@psd
Also, crypto payments right now is more akin to debit. Merchants fees on debit are around 1.5%, so paying with USDC might not even save merchants much
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