Web3 business is booming.
The recent news about Google partners with Coinbase is an example that the future of Web3 can progress.
Coinbase CEO Brian Armstrong envisioned the payment system in 2012.
If the transaction fee can be reduced to a fraction, cryptocurrencies are the way for payment systems.
I always support and believe the crypto payment system is the most route of the future.
The credit card business is the most profitable business in the banking system:
Because credit card companies control the users' transaction data and mark up the price to end users, which then automatically collect fees from each transaction, but the service they provide is less frequent to the trade.
The difference makes a huge profit out of the "service fee" without needing to provide service as frequently as they would.
To make a cryptocurrency payment system work, you remove the middleman that provides "service" or replaces it with a cheaper method with a higher security protocol like blockchain.
We previously thought that blockchain transaction was cheaper than credit card payment system only because there were fewer users in the cryptosystem. But since 2021, we have experienced an overcrowded blockchain with higher fees that were not sustainable to become a replacement for the credit card system.
So let's explore what makes cryptosystem works.
What Is the Credit Card Payment System?
The e-commerce world has exploded in the last few years, and now many consumers have a digital payment option that’s second to none. In fact, online shoppers now make up more than a quarter of all Americans’ spending power. And thanks to digital disruption, they’re also more likely to seek out new ways to spend their money — including digital payment solutions. In this day and age, consumers are particularly interested in buying stuff they can trust with their financial data. Companies can offer that with a trust score that is based on a company’s track record and product safety. That trust score is sometimes known as a “credit” and it can give consumers a better chance of winning a purchase decision.
How It Works?
Here’s how the e-commerce industry could benefit from the new payment system. A cheaper and faster solution without a border restriction and is accessible to everywhere with any devices that users carry to. Since crypto is apolitical digital currency that using its blockchain as an unique channel to transact payments, it is an ideal candidate to provide alternative solution away to credit card payment system.
Why Are Card Payments Important?
Credit card companies will have to start getting ready for a new, digital payment landscape. In order to keep their business model intact, they’ll have to adapt to the emerging digital payment landscape. Payment card companies will have to live with the increasingly digital payment landscape and start to accept cryptocurrencies as payment channels. That could mean they’ll have to start including such payment channels in their app, as well as begin accepting payments in other alternative payment networks such as Bitcoin and Ethereum.
Ethical requirements for using crypto payments
While the concept of digital payment systems is new, the processes and requirements necessary to set up a modern payment system are quite strict. Credit card providers must follow strict rules on whom they can charge, how much they can charge, and when they can charge it. Credit card providers must keep records of every payment made, including the amount charged, the account number associated with the payment, and all payment confirmations. This includes all payment information, like payment amount, payment method, and payment recipient information. Opposite to credit card providers, crypto requires less invasive data to identify users before transacting payments.
However, regulations may change the privacy requirements, and payment systems may still need users data to grant their usage.
Step-by-step guide on how to use a crypto payment system
1) Identify your payments source. This will help you find out where and how your payments are coming from. For example, your payments could be coming from a credit card, an online service, a mobile app, or a service that’s only available in one language.
2) Set up a short business plan. Your short business plan should outline the nature and what value your business will add to the market. This will help you KPI ( KPIs ) your performance and show a clear path to market for your business.
3) Decide on a payment channel. The payment channel is the channel you’ll use for your payments. Depending on your payment channel, you may decide on a digital wallet, blockchain-based digital wallet, third-party cash deposit outlets, or other channels depending on your needs.
4) Set up payment policies. Payment policies are another important part of your business plan. These will help you define your payment policies, which will help you protect your customers.
Crypto Payment Risks
Crypto payment is irreversible. However, TradFi or Cefi such as Coinbase can resolve this issue.
However, crypto is still very expensive and slow processing payments that requires some knowledge of using such technology.
In the coming years, Web3 will bridge knowledge between users and companies to provide intermediate services that reduce costs on both sides.
Conclusion
It’s important for retailers to keep on top of the new payment landscape and their contractual obligations. That includes complying with the terms and conditions of credit cards, protecting customer data, and making sure there are adequate resources for customers who have new payment methods. That being said, it’s also important for businesses to make sure that they have the necessary manuals and procedures in place to handle new payments. That includes hiring employees dedicated to the new digital payments landscape, as well as compiling and aiming for a clear and concise manual.
Bottom line
The e-commerce world has been largely untouched by the digital payment landscape that has grown up with digital assets and digital payments. That means most businesses remain at a loss to accept new payments methods and know-how. To make matters worse, most credit card providers don’t yet recognize the new digital payment landscape, so there won’t be a standardized way to handle payments in the near future. Meanwhile, most payment channels — including credit cards, debit cards, etc. — are yet to get settled on. That leaves little room for innovation and growth within the e-commerce sector. In particular, as most e-commerce businesses remain at a loss to accept new payments, it’s important for them to get their manual right and make sure their payments are clear and consumer-friendly.
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2022 Prediction
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
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DAO The Way
DAO The Way Part 1
DAO The Way Part 2
DAO The Way Part 3
DAO The Way Part 4
DAO The Way Part 5
DAO The Way Part 6
DAO The Way Part 7
DAO The Way Part 8
DAO The Way Part 9
DAO The Way Part 10
DAO The Way Part 11
DAO The Way Part 12
DAO The Way Part 13
------------------------
Learn How To Defi
Learn How To Defi Part 1
Learn How To Defi Part 2
Learn How To Defi Part 3
Learn How To Defi Part 4
Learn How To Defi Part 5
------------------------
Crypto Comics
Crypto Comics
Crypto Comics - PoW
Crypto Comics - Who is Satoshi
Crypto Comics - What is Token
Crypto Comics - What is DeFi
Crypto Comics - What is Wallet
Crypto Comics - What is HODL
Crypto Comics - What is Coinbase
Crypto Comics - What is PoS
Crypto Comics - What is DAO
Crypto Comics - What is A Block
Crypto Comics - What is NFT
Crypto Comics - What is Fork
Crypto Comics - What is Web3
Crypto Comics - What is DeFi-2
Crypto Comics - What is Yearn Finance
Crypto Comics - What is Degen
Crypto Comics - What is Aping
Crypto Comics - What is Cold Wallet
Crypto Comics - What is Hot Wallet
Crypto Comics - What is Airdrop
Crypto Comics - What is DYOR
Crypto Comics - What is 65537
Crypto Comics - What is RC4
Crypto Comics - What is WAGMI
Crypto Comics - What is Bagholder
Crypto Comics - What is Decentralization
Crypto Comics - What is Wallet Address
Crypto Comics - What is Plagiarism in Web3
Crypto Comics - What is Bart Pattern
Crypto Comics - What is Encryption
Crypto Comics - What is Consensus
Crypto Comics - What is Protocol
Crypto Comics - What is Stablecoin
Crypto Comics - What is ApeCoin
Crypto Comics - What is FOMO
Crypto Comics - What is Tokenomics
Crypto Comics - What is APR
Crypto Comics - What is to The Moon
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Learn Web3 in 100 Days
Learn Web3 in 100 Days - #1 What is the Internet and How Relevant to Web3
Learn Web3 in 100 Days - Day 2: What are the Browsers and Servers
Learn Web3 in 100 Days - Day 3: What are HTTP Status Code
Learn Web3 in 100 Days - Day 4: HTML and CSS and JS
Learn Web3 in 100 Days - Day 5: What is programming
Learn Web3 in 100 Days - Day 6: Markup, Elements, Tags, and Hyperlinks
Learn Web3 in 100 Days - Day 7: Style Your Web
Learn Web3 in 100 Days - Day 8: JS
Learn Web3 in 100 Days - Day 9: SQL
Learn Web3 in 100 Days - Day 10: Front-End
Learn Web3 in 100 Days - Day 11: Front-End Framework
Learn Web3 in 100 Days - Day 12: More HTML
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Modern Economic Nonsense
Modern Economic Nonsense - Inflation and Incentives
Modern Economical Nonsense - The Astrologist's Way
Modern Economical Nonsense - The VUCA World
Modern Economical Nonsense - Zug Tax and How to Run your Own Monopoly
Modern Economical Nonsense - Participatory Economy
Modern Economical Nonsense - Economic Models
Modern Economical Nonsense - Tokenomic Models
Modern Economical Nonsense - Design A Reputation-Based System
Modern Economical Nonsense — The Money Problem
Modern Economical Nonsense — The Treasury Problem
Modern Economic Nonsense — Bitcoin vs. Real Estate
Modern Economic Nonsense — A very long term view
Modern Economic Nonsense — Banking Collapse
Modern Economic Nonsense — A Wall Street Legend
Modern Economic Nonsense — A Modern Alchemy
Modern Economic Nonsense — Founder goes ghosting
Modern Economic Nonsense — Anonymous cool or fool
Modern Economic Nonsense — The market volatility
Modern Economic Nonsense — The money shortage
Modern Economic Nonsense — The web3 scams or not
Modern Economic Nonsense — All about debts
Modern Economic Nonsense — Metaverse is still relevant or not
Modern Economic Nonsense — A Show of Recession
Modern Economic Nonsense — A Myth of Valuation
Modern Economic Nonsense — Inflation becomes irrelevant
Modern Economic Nonsense — A journey of money laundering
Modern Economic Nonsense — Consumer Sentiment Might Be Low
Modern Economic Nonsense — Is payment technology still relevant in high inflation environment
Modern Economic Nonsense — Recession is coming
Modern Economic Nonsense — We are at the bear market, now what
Modern Economic Nonsense — Invest like a cat
Modern Economic Nonsense — Bitcoin leads the market recovery
Modern Economic Nonsense — The dollar is dying slowly
Modern Economic Nonsense — The current stock market wants to go back to 2019 but ignore the technological solution of the future
Modern Economic Nonsense — Today's fear, tomorrow's cheer
Modern Economic Nonsense — An engineering recession
Modern Economic Nonsense — The market is broadening rug pull everyone
Modern Economic Nonsense — The self-fulfilling recession
Modern Economic Nonsense — Crypto is changing the advertisement business
Modern Economic Nonsense — Blockchain phone
Modern Economic Nonsense — Next generation of wealth
Modern Economic Nonsense — Crypto winter prolonged with high inflation persists
Modern Economic Nonsense — The era of currency debasement
Modern Economic Nonsense — What if the Fed gets inflation all wrong
Modern Economic Nonsense — The Bitcoin apocalypse is coming
Modern Economic Nonsense — The Bitcoin reserve is coming
Modern Economic Nonsense — Payment apps move away from the fiat currency
Modern Economic Nonsense — Web3 continues building despite the bear market
Modern Economic Nonsense — Banks are seeking shelter in cryptocurrencies
Modern Economic Nonsense — Inclusive blockchain
Modern Economic Nonsense — Time to reinvent cryptocurrencies
Modern Economic Nonsense — Crypto companies' bankruptcy wave is healthy
Modern Economic Nonsense — The Bitcoin mining company is not profitable
Modern Economic Nonsense — Crypto attracts more talents in the current market
Modern Economic Nonsense — Why Bitcoin Maximalism will fail
Modern Economic Nonsense — Gaming culture and crypto
Modern Economic Nonsense — Global crypto regulations are coming
Modern Economic Nonsense — Decentralization may not work as everyone expects it would
Modern Economic Nonsense — Government opens ideas to the public about cryptocurrencies
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Random Thoughts
The latest crypto secret weapon - Hyper-personalize shopping
Russia Prohibits Crypto as a Legal Payment (What are the Consequences?)
Cyber criminals using crypto mixing services are booming
The Next Frontier of Gaming: Introducing the Metaverse
Crypto VC becomes so chaotic
We are heading into the debt crisis and crypto can help
How Three Arrows Capital Missed Every Target They Aimed
55% completion of Ethereum 2.0 means an unfinished product
The dollar is ever stronger
When Crypto gets into politics
Bitcoin Reduces Cost Of Living
Free education in crypto
The banking system rules out the crypto market threat
The US Stablecoin Bill is coming soon
MetaMask Ethereum Wallet update to prevent scams
We are in a recession, no doubt?!
How high leverage crypto lending market collapses
What Metaverse?!
Self-proclaimed Bitcoin creator Craig S. Wright won the legal case for £1
Ethics of Crypto
Crypto hacking is inevitable
The parallel money system
The Crypto has no greed problem
Banks are secretly hoarding crypto
Why there is not crypto banking exist
Financial sanction to mixers
The Future of Machine War II
Why Gold System Comes Back
Your future landlord is buying crypto
Future of the blockchain
The Ethereum Merge
Smart Contract Ponzi Schemes
Crypto can help to create meaningful jobs
Crypto VC from WeWork to WeBack
Misconception about Ethereum Upgrade aka Merge
Misconceptions about the NFTs
Learning Blockchain through Python: Part 1
Opinions about Ethereum’s Future
Meta...verse?!
Arrested Tornado Cash Dev signals the next arrest maybe you
Bitcoin's Taro has a scalability doubt
NFT Repurpose
What Defi?! It is more like a Nofi
The future of the economy is looming again
CBDC is useless
Ethereum is winning in the coming short term but privacy will be once to win for all
AVAX Conspiracy
Lessons Learned from the Global Economy Crisis (NFSW)
Compound REKT
Helium + Solana = ??
You need insurance for current inflation
NFT licenses
My opinion of neural networks as a philosophy
Metaverse Winter is So Cold
Cult or DAO, You Decide
The Fourth Dimension of the Crypto Universe
Threats of the Crypto Universe
Gambling of the Crypto Universe
Bitcoin Mining Energy Myth
NFT marketplace is quietly collapsing
When Luna is a meme coin
A Dream of Interpersonal Computing
After Terra co-founder's Arrest Warrant
A disappointed boring Ethereum Merge
A disappointed First-Ever comprehensive framework
State vs. Individual
The currency crisis reaches its peak
My opinion about inflation in the future
When slow means better
You just got fired
When banks play double dipping
Why Defi is smoking
One of the biggest advantages and disadvantages in crypto
AI vs Tornado Cash
When fiat currency is volatile
The core reason why Defi is not working
What if you regret your crypto transaction
What Did the Bank of England just Do?
Decentralized Social Media is a BS
A trust issue
Not an expert
Kim Kardashian’s $1.26 million crypto ticket
Deglobalization is happening
How unnecessary the blockchain bridge is
Proof of Stake makes sense
When the dollar is the protocol of the money
The Metaverse and NFTs liquidity is drying up
Bank of England goes barrrr
What if the crypto goes centralized
Burnt Hair
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Yearn Finance Comic
Yearn Finance Comic - Part 1
Yearn Finance Comic - Part 2
Yearn Finance Comic - Part 3
Yearn Finance Comic - Part 4
Yearn Finance Comic — Part 5
Yearn Finance Comic - Part 6
------------------------
Curated Lists
Curated Lists - Web3 Culture
Curated Lists - Crypto-enabled Communities
Curated Lists - Crypto Philosophy
------------------------
Defi 101
Defi 101 - Part 1
Defi 101 — Part 2
------------------------
Thoughts
Thoughts about VC and PleasrDAO x BitDAO
The Crypto Market has Changed
The Myth of Inflation Hedge
The Myth of Stablecoin
The Myth of NFT
End of the Crypto Market?
The End of the Stablecoin?
Terra-UST Saga - How to repair the trust when there is no trust built on
How to deal with negative market sentiment
------------------------
Crypto VC Thoughts
Crypto VC Thoughts: Physical Assets vs Digital Assets
Crypto VC Thoughts: Digital Money Pushes Energy Companies to Innovate
Crypto VC Thoughts: GameFi Dilemma
Crypto VC Thoughts: Credit Oceans
Crypto VC Thoughts: The Death of Terra
Crypto VC Thoughts: Debunk Bitcoin Myths
Crypto VC Thoughts: Defense Crypto Investment Methods
Crypto VC Thoughts: New Type of Stablecoin
Crypto VC Thoughts: Crypto Business Cycle
Crypto VC Thoughts: Crypto Business Cycle 2
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Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
