A rapid, simple and low cost means of payment in everyday life has been an aspiration of the cryptocurrency ecosystem since the earliest days of blockchain technology. For a variety of reasons, from asset price volatility to low transaction throughput, the payments use-case has remained out of reach for millions of consumers around the world and the merchants that want to serve and more deeply connect with them.
Demand for this application is as high as ever—a recent study by Visa1 found that 73% of small businesses surveyed said accepting digital payments is fundamental to growth in 2022, and
59% said they already are using, or plan to use, only digital payments within the next two years.
That’s why we’re so excited to be an integral launch partner for Solana Pay, a new set of decentralized payment standards and protocols for merchants to enable direct acceptance and settlement of dollar digital currency, such as USD Coin (USDC), at the point of sale and online.
At launch, Solana Pay will enable near-instant settlement at near-zero cost for USDC payments at participating merchants, unlocking access to more than $4 billion in USDC currently in circulation on the Solana blockchain and more than $49 billion across the entire digital asset market as of February 1, 2022. Merchants can settle and store that USDC in their Circle Account, where they can manage payments and treasury operations, convert funds back to fiat via traditional bank accounts, and send USDC on-chain via a growing list of the world’s leading blockchains. Qualified businesses can also access Circle Yield, a fixed-rate crypto investment designed to deliver crypto returns, without the complexity.* As of November 17, 2022, Circle Yield is not accepting new loans. We are evaluating future updates to the program.
“Circle is thrilled to be working with Solana to simplify and adapt USDC payments for consumer-facing businesses,” said Jeremy Allaire, Co-founder, Chairman, and CEO of Circle, “The launch of Solana Pay is a critical step toward broadening access and usage for merchants and customers who want a faster, more efficient payment option for everyday commerce.”
Solana Pay2 is available to a wide range of merchants. Implementing Solana Pay is as simple as enabling a QR code on a merchant’s website or at the point-of-sale, allowing merchants large and small, ecommerce platforms, POS providers, and a broad array of payment service providers to easily accept and transact with USDC for everyday purchases, providing customers with a superior payments experience powered entirely by blockchain technology.
What’s more, Solana Pay creates the building blocks for a re-imagined merchant-to-consumer relationship that is truly peer-to-peer. Merchants can now maintain a direct communication channel with their customers, unlocking new promotional opportunities like sending reward tokens or NFTs, enhanced loyalty programs based on activities on-chain, and other targeted offers based on quick and direct interactions.
The world of financial technology is not standing still, and neither are we. The launch of Solana Pay means merchants and consumers will help drive how the advancement of blockchain technology reshapes the commercial payment infrastructure for enterprises and small businesses like never before. This milestone is only made possible through Solana and infrastructure partners like Circle, and we can’t wait to do our part facilitating the next generation of payments technology and the rapidly growing adoption of dollar digital currency around the globe.
1 “Visa Study: Small Businesses Optimistic, Looking to Digital Payments for Growth in New Year”, 01/23/22, Visa
2 Solana Pay, 02/01/22, https://solana.com/solana-pay
* Offering subject to business approval, geographical availability, and regulatory authorization, and there is no guarantee that the product will become available in a specific timeframe or to a specific customer or geography. Circle Yield product offered through Circle International Bermuda Limited (“Circle Bermuda”). Circle Bermuda has entered into lending arrangements with one or more institutional borrowers, including Genesis Global Capital, LLC***. These borrowers pledge and transfer Bitcoin into custody with a third party custodian as collateral for their USDC borrowings and Circle Yield investors benefit from a security interest in Circle Bermuda’s security interest in the pledged Bitcoin.
Circle Account and money transmission services are provided by Circle Internet Financial, LLC. Circle Internet Financial, LLC, NMLS # 1201441, is a licensed provider of money transmission services. A full list of Circle’s licenses can be found here.
Circle is not a bank; your Circle Account is not a bank account, and any funds are not insured by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation or by any US or foreign government agency, insurance fund, person or entity. For investors in the United States, investments described in this communication are offered by Circle Bermuda to “accredited investors” only in accordance with Regulation D, Rule 506(c) of the Securities Action of 1933, as amended. While Circle Bermuda is regulated by the Bermuda Monetary Authority for digital asset business, Circle Bermuda is not engaged in banking and deposit taking activities and is not regulated for these purposes. You should carefully conduct your own investigations and analyses in connection with any participation in this product, including its objectives, risk factors, fees and expenses and the information set forth in these materials. All prospective participants in the products described herein are advised to consult with their legal, accounting and tax advisers regarding any potential participation. Please read the offering documents carefully before you invest. Additional information is available upon request.
Not currently available in the following U.S. states: Alaska, New York and Hawaii.
**Rates are purely indicative and are subject to change pending availability, approval and market conditions.
***Learn more about Genesis Global Capital, LLC here