“The future of digital payments lies in Web3 payment services” says Robert Miller of Fuse – Bitcoin News
Despite not being mainstream payment solutions yet, cryptocurrency-based payments (also known as Web3 payments) already offer benefits such as lower transaction fees, Robert Miller, vice president of growth at Fuse, a Tier 1, EVM-enabled blockchain for launching dapps. have claimed. For merchants, Web3 payments come with the added benefit of what Miller called protection against “fraudulent chargebacks.”
Crypto payments trump traditional payment methods
To support his claims, Miller argued that many of the merchants who are currently experimenting with or encouraging their customers to use Web3 payments are doing so because they are seeking a better deal than what they get from traditional payment providers.
However, Miller admitted that Web3 payments are still in their infancy and as such have certain limitations that hinder their adoption. In his written responses to questions from Bitcoin.com News, Miller also highlighted the security challenges that users of Web3 payment methods must expect. In addition, the Fuse CEO also reiterated the argument that self-storage of private keys is the most ideal and secure method of storing one’s digital assets.
Bitcoin.com News (BCN): What are Web3 Payments and why should online merchants care about Web3 Payments at all?
Robert Miller (RM): Web3 payments refer to payments made using cryptocurrencies and blockchain technology. Online merchants should care about Web3 payments because they offer several advantages over traditional payment methods.
First, cryptocurrency payments are faster and more secure due to the immutable nature of blockchain technology. Second, they have lower transaction fees, which can significantly increase a merchant’s profits. Third, they allow global reach and expand the customer base beyond geographic locations. Fourth, accepting cryptocurrency payments can increase customer loyalty, as cryptocurrency enthusiasts prefer to support merchants who accept their preferred form of payment. Finally, in a world where money is being reinvented, accepting Web3 payments can enhance a merchant’s brand image as an innovative business that values cutting-edge technology and customer privacy.
By using a Web3 payment solution, we cut out the middle man for our transactions – the banks, payment processors and brokers. Web3 payments are completely peer-to-peer and are built on trustless logic systems, meaning no one needs to trust a third party to facilitate the transaction. More importantly, businesses and online stores allow instant, limitless transactions with low fees depending on the amount sent or received.
BCN: Can you explain why an online buyer should choose crypto payments over, say, Visa, Stripe or other traditional payment methods supported by merchants?
RM: Buyers should do what is most beneficial to them as consumers at the time. If the offer is the same as yours and you prefer to use Visa, you should use Visa. In this case, the seller will pay 3.5% on the transaction. Consider a business that makes $1 million per year – that’s a potential $35,000 in Visa transaction fees alone, which is an insane amount of money.
This is why merchants are increasingly choosing to experiment with Web3 payments, often offering discounts or loyalty programs through NFTs or tokens to encourage consumers to use the payment option that helps them save money and improve the user experience.
BCN: The Bitcoin network has recently seen the number of unconfirmed transactions rise to over 200,000, pushing the average network fee to almost $20. Some have said that such high fees make the argument supporting the use of crypto as a means of payment moot. Do you agree with this statement?
RM: The high fees and long confirmation times for Bitcoin transactions have been a source of criticism for the cryptocurrency. However, it is important to note that Bitcoin was not primarily designed as a payment system, but rather as a decentralized store of value.
While it is true that the high fees and slow transaction times may make Bitcoin less attractive for small and everyday transactions, there are still many use cases where it can be valuable. In addition, there are other cryptocurrencies and blockchain networks specifically designed for fast and low-cost transactions, such as Fuse, Polygon, and Binance Smart Chain. These networks are more suitable for payment use.
BCN: Your blockchain project Fuse is said to aim to enable seamless and affordable crypto payments in everyday life. From your point of view, what do you think are the benefits of accelerating the mainstream adoption of Web3?
RM: When big companies like Starbucks, Nike, Adidas and McDonald’s announce plans to experiment with Web3 payments, they usually throw down a multi-million dollar proof of concept (POC) budget and assign a dedicated team to run the project without necessarily affects other parts of the business in a big way. SMEs and startups cannot do this. So how do they ensure that they participate in the paradigm shift of money?
Fuse offers easy-to-deploy, end-to-end integrated products, including a wallet SDK, ready-to-use APIs and mobile wallet tools and infrastructure to level the planning field and ensure businesses that are the backbone of the economy can play a role.
BCN: What advantages do Web3-native solutions like yours have over those offered by giants like Visa, Paypal and Stripe?
RM: The future of digital payments lies in Web3 payment services. They offer a number of advantages over legacy payment systems, including reduced transaction fees, faster settlement times, increased security, borderless payments and greater transparency and privacy. As Web3 payments continue to gain traction and become more widespread, they have the potential to transform the way we conduct transactions, making them more efficient, secure and accessible.
Compared to traditional point-of-sale (POS) systems, accepting crypto payments offers several benefits, including lower transaction fees, merchant protection against fraudulent chargebacks, increased sales potential, and increased ease of use. Additionally, there is a level of anonymity with crypto payments that some merchants and customers may find attractive.
The Fuse ecosystem includes 100 integration partners and has been built over three years to provide essential services and infrastructure designed to create a robust platform for mainstream crypto and Web3 payments.
BCN: Your startup is said to have recently launched a $10 million Ignite Funding Program. What is the purpose of this fund and who are the intended beneficiaries?
RM: As part of our ongoing mission to bring Web3 payments to mainstream business, we are dedicated to supporting both real and defi projects. The Ignite program comprises two main funding areas. The first is a $10 million chain defi incentive fund, designed to improve the overall financial health of the hedging ecosystem. The second is to support early stages of real world builders on Fuse. The strong economic activity in the chain supports innovation in line with our north star to achieve mainstream crypto adoption with payments. Innovation, in turn, supports strong economic growth and activity, creating a flywheel effect.
BCN: Just like any technology that is still in its infancy, Web3 payment platforms are exposed to security threats and high costs. What is your advice to those using Web3 payment solutions for the first time?
RM: Web3 payments are still in their early stages and have certain limitations that must be considered before using them. Web3 payments may be vulnerable to security threats and high transaction costs as several networks have not yet addressed these issues. Fortunately, Fuse does not have these problems and can process transactions in under 5 seconds for a cost of less than a cent.
Furthermore, merchant acceptance remains a challenge, and there is a lack of understanding of the importance and impact of blockchain-related concepts. Fraud and fraudulent activities occur everywhere, and it is important to be safe and vigilant while working with Web3 payment solutions. Never share private keys, double-check wallet addresses and networks before sending any crypto, and watch out for scams or fake sales on social media.
Additionally, centralized exchanges can disappear and take your crypto with them, so it’s important to own your keys and use escrow wallets. Finally, taxation is crucial and anyone dealing with Web3 payments needs to know how it is taxed in their region.
What are your thoughts on this interview? Let us know what you think in the comments section below.
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