Web3 Payments: The Future of Digital Transactions?
Robert Miller, the vice president of growth at Fuse, a layer 1, EVM-compatible blockchain for launching dapps, recently asserted that cryptocurrency-based payments (Web3 payments) already bring benefits such as lower transaction fees. According to Miller, many merchants presently experimenting with or encouraging their customers to use Web3 payments are doing so because they are seeking a better dealon payment processing fees and the associated costs.
Miller stated that Web3 payments are a "no-brainer" for merchants who want to avoid paying high fees charged by traditional payment methods such as credit cards. Unlike credit card transactions that have a chargeback risk, Blockchain-based payments eliminate this risk through its immutability and transparency. As a result, merchants can benefit from reduced fraud and chargeback fees while enjoying a faster settlement time frame.
Web3 payments also come with the added benefit of what Miller called protection from "fraudulent chargebacks." This means that transactions once confirmed on the blockchain are irreversible, providing additional security for both buyers and sellers in a transaction.
However, for web3 payments to become truly mainstream, there needs to be increased adoption by merchants and consumers. Additionally, issues such as scalability, high energy consumption, and interoperability still need to be addressed to enable seamless use of these payment methods.
In conclusion, Web3 payments have the potential to revolutionize digital transactions, offering lower transaction fees, enhanced security, and faster settlements. With increasing merchant adoption, it is possible that we may see more widespread use of blockchain-based payments in the near future.