For years, crypto payment has been facing a major setback-volatility. This major set back is one of the major reasons crypto has not been adopted globally or fully utilized in a global legal tender. Imagine trying to pay for a cup of coffee at a coffee shop or paying for a new car with your Bitcoin, and at the point of payment, its value drops before the translation is concluded.
Businesses hesitate to adopt cryptocurrency on a large scale because of volatility and inability to predict its value, while customers on the other hand, corry about losing their hard earned money. Some companies have tried to solve crypto volatility issues to help foster crypto adoption and use among businesses.
For instance Bitpay introduced the Bitpay card and payment gateway in 2011 to allow merchants to pay for anything using the crypto card, yet merchants still face price fluctuation. Similarly, Flexa introduced a crypto tap-to-pay solution for instant crypto payments, yet faced declined crypto adoption.
Even Paypal’s crypto checkout struggles with mainstream acceptance. Therefore the challenge is clear: for crypto payment to work, it must be stable and reliable.
Now SpacePay claims to have a solution, But the question is can SpacePay succeed where other Web3 companies have stumbled? Will SpacePay bring about the breakthrough businesses and consumers look forward to?
Let’s check it out
What is SpacePay?
Launched mid-2024, Spacepay operates as a cryptocurrency payment solution platform with an infrastructure, aimed to enable business and daily user pay for everyday commodities with digital assets in their wallet.
SpacePay operates on a blockchain technology accepting over 325 different crypto assets wallets without the need for additional hardware. The aim for this application is to further close the gap between traditional payment systems and the decentralized payment structure.
SpacePay claims to solve the problem of fluctuating prices in cryptocurrencies by providing merchants with immediate charge authorization and automatic conversion of payments into the merchant’s preferred fiat currency. This guarantees that the business will receive exactly what they expect no matter the state of the market.
Furthermore, SpacePay has a highly competitive fee which is only at 0.5% making it affordable unlike other payment processors.
What is the SPY token?
Like every other decentralized platform with a token, SpacePay also has its own native token called “SPY.” This token doesn’t just serve as a token that aims to foster community engagement and participation, it is also a token that is awarded to users of the platform as a loyalty benefit.
This token serves as a strategic move for the company to allow users to be stakeholders in the growth of the company and not just use the platform to carry out transactions. The token has been reported to have gathered over $966,000 during its presale and currently trades at $0.003126.
Business benefits of SpacePay’s payment system
- Safeguarding Against The Volatility of Cryptocurrency
One of the most difficult aspects of crypto payments are the price changes. SpacePay addresses this problem by instantly changing cryptocurrency payments into fiat currency, which means that businesses do not have to worry about sudden shifts in the market. They will always receive the exact amount that they expect to get.
- Effortless Incorporation into Current Payment Infrastructure
SpacePay offers a solution to businesses looking to facilitate crypto payments without the need for any investment or technical skills unlike various crypto payment systems that employ new POS hardware SpacePay is compatible with existing point of sale systems.
- Reduced Transaction Costs
SpacePay charges 0.5% per transaction and doesn’t have the straightforward payment processor limits such as Visa and MasterCard which charge up to 3%. This enables businesses to lower their expenditure on processing cost, while increasing payment methods.
- Growing Clientele
With more than 325 supported cryptocurrencies with SpacePay, businesses can appeal to a wider market of users who prefer digital banking over regular banking.
- Quicker Transactions Without Boundaries
SpacePay allows instant payments throughout the world while removing the obstacles tied to international payments and greatly lowering the time needed for banking settlements.
How Startups can incorporate Spacepay
If SpacePay eventually pulls through, here is how this solutions can be used by web3 Startups to help their business grow:
- Integration Of SpacePay with Web3 Frameworks
Web3 new businesses can take advantage of SpacePay’s API and SDK for effortless incorporation of SpacePay for payments on decentralized apps (dApps), NFT marketplaces and other blockchain-based services, ensuring users are able to transact through crypto without the services of a bank.
- Receiving Payment in Cryptocurrency for Offered Products and Services
A Web3 company serving crypto based digital assets like Dao, SaaS products, or blockchain consultancy can directly accept payments in crypto through SpacePay while instantly converting them to fiat, helping reduce potential volatility risks.
- Improved Subscription-Based Services With Dependable Crypto Payouts
For Web3 Startups which have subscription based offerings, SpacePay can solve the problem of recurring payments by allowing startups to bill their customers in crypto for reliable payments that can instantly be converted to fiat.
- Increased User Base With Affordable Transactions
Web3 Startups stand to benefit greatly from this since SpacePay charges only 0.5% per transaction. SpacePay enables them to lower the cost of payment processing and make it appealing to customers.
Challenges and Risks of the Model
SpacePay may provide a fresh approach to the problem of crypto payment volatility, however, they face challenges as those that BitPay, Flexa, and PayPal’s Crypto Checkout encountered in the past.
- Merchant and Consumer Adoption
Adoption rates seem to be the concern for all previous platforms. The majority of businesses do not want to accept crypto due to lack of regulation, technical issues, and volatility. SpacePay’s customers also want to believe that merchants will be willing to integrate crypto payments into their business models, SpacePay being able to seamlessly convert the payments to fiat currency.
- Regulatory Hurdles
Countries are becoming more strict when it comes to regulations surrounding cryptocurrency payments. Services like PayPal’s Crypto Checkout faced compliance challenges in several parts of the world, which limited their growth. SpacePay will have to tailor their services to many different regulations around the globe to avoid the same problems.
- Competition from Stablecoins and CBDCs
USDT or USDC are preferred choices for many transactions because they already have some level of price stability. Also, CBDCs are coming up as regulated options for digital currencies. SpacePay has to stand out with a compelling case to support why their model is better in the dominant competitive environment.
- Risks Related To Trust & Security
Every developing technology such as crypto offers a payment solution, comes with risks in the form of hacks and fraud. SpacePay may not be trusted by businesses and users alike if strong security measures aren’t put in place, just like some crypto payment startups did due to breaches in security.
What If SpacePay Succeeds?
By overcoming these challenges, SpacePay has the possibility of becoming a benchmark for crypto payments. Because their service will give businesses the capability to accept digital currencies without volatility, it will expand the adoption of digital currency in a variety of industries.
This can bring crypto payments to a level where they are commonly accepted, further enhancing the integration of decentralized finance (DeFi) with traditional commerce. Unfortunately, the future is shrouded in mystery. We can’t say for sure whether SpacePay will be able to achieve what so many have tried and failed.
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