Although other companies have tried to eclipse its place, no one has taken the throne away from the American multinational financial technology company with the most significant influence in the last two decades.
Let’s face it; its presence does not only apply to the United States. Thousands of people around the world use PayPal daily. However, criticism has been growing. Many users must look more favorably at the high fees charged by the payment company. Faced with this, others have appeared to compete with it.
In this sense, several have come to dethrone PayPal. We can highlight Zelle and Payoneer, among others, such as Binance, characterized as a network for those seeking to invest in cryptocurrencies.
But none of those just mentioned is the payment platform that can take away the place that today holds the company established by Max Levchin, Peter Thiel, and Luke Nosek. Solana is a Blockchain platform founded in 2020 by Solana Labs & Solana Foundation.
Besides having its blockchain system, one of the aspects that makes it stand out is that the transactions are so fast, which transforms it into a real disruptor in the field of payments. Given this exponential growth, investors have already set their sights on Solana, as they expect it to make an important step in the payments platform segment.
Yes, PayPal’s dominance is indeed understood. Many opt for the company’s reliability which operates as a payment processor for online vendors. But why does Solana have the opportunity to make an unexpected impact?
Solana Labs, the entity that developed “Solana Pay,” sought to focus on providing a service that makes it easier for merchants and consumers to make transactions without having to resort to intermediaries. These usually involve incredibly high costs, especially if we talk about PayPal, this being 5.4% plus 0.30 USDs.
Solana Pay is coming soon on Zoksh.
— ZokshPay | At Consensus 2024, Austin, Texas (@zokshpay) March 5, 2024
Solana uses its blockchain and native token (SOL) to make commissions practically non-existent. The company’s new competitor, formerly Confinity, allows stronger connections between the two parties (sender, receiver, and vice versa).
Another striking feature is that Solana uses the famous NFT or non-fungible tokens. For example, if you buy clothes in a store that receives Solana Pay, instead of a receipt, you get an NFT that authenticates the product. But in addition to this, you will get access to special promotions that the merchant will offer you in the future.
Solana and its foray into the world of payment platforms
Although Solana operates as a virtual wallet for buying and investing in cryptocurrencies, it is necessary to analyze the presence of cryptocurrencies. Although there are often many doubts about it, the reality is that experts agree that it is a decentralized financial protocol, especially in terms of payments. There are no intermediaries, so the transaction is faster, safer, and more accessible.
So, Solana has a future ahead of it? Perhaps not to take the place of PayPal (at least not yet), but to insert itself as a business model that is very favorable for both the merchant and the consumer.
Despite its positive aspects, it is also good to report the risks that Solana Pay may have. In the past, its system has suffered outages. In terms of security, there are also certain risks. Therefore, those who use the platform should be aware of hackers who can steal their data and money.
It remains to be seen whether PayPal will continue to remain the most influential online payment company or another will come along to dethrone it. We’ve seen this scenario before, but will it happen? Perhaps Solana is just the beginning.