Can we get rid of payment processors thanks to USDT/USDC?

anotherone

anotherone

🗣️ Loud Newcomer
Feb 14, 2020
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It is now 2025 and things have evolved in the crypto world.
It is now possible to use different blockchain networks to pay in USDT and USDC.
I think these solutions could help business to get rid of payment processors / merchants.

The blue print would be the following:
Customy buys USDT => Buy your product / service instantly thanks to Solana(USDT) or Stellar network(USDC) => USDT amount is sent to your standalone wallet on your private server => You can then transfer to Binance / Kraken => Convert in your currency.

USDT can use the SOLANA network:
Solana is one of the best networks for buying and selling USDT due to its speed, low fees, and unique address format. Here's a full breakdown of why USDT on Solana (SPL) is an ideal choice compared to Ethereum, Tron, and other networks.

Transaction confirmation time: ~0.4 seconds per block.
Full transaction finality: ~1-2 seconds (vs. 10+ minutes for Ethereum).
This means you can buy or sell USDT almost instantly””perfect for traders, merchants, and payments.

Solana (SPL) USDT addresses look completely different from Ethereum (ERC-20) or Tron (TRC-20) addresses.
Example of a Solana USDT address:

8f5rYdRmjJcfG9XW6y8hGm4N9M1r5Qd9DVR4FHJbBh4

Ethereum & Binance Smart Chain addresses: Start with "0x..." (which can cause confusion).
Tron addresses: Start with "T..." (which looks unique but isn't always recognized).
Advantage: No risk of accidentally sending funds to the wrong network!

Solana has never had major regulatory issues with USDT transactions.
Unlike Ethereum (high fees) and Tron (some regulatory concerns in the US), Solana provides a stable and efficient environment for USDT.
Transactions can't be blocked or frozen by validators like in centralized banking systems.

Cons: you need to buy a Bit of solana to cover transaction fees.

Option 2:
USDC over Stella network.
same benefits.
same kind of cons: you must buy XLM to cover transaction fees


What do you think?
 
Sure, if you only want to sell to people who have/use crypto and as long as the merchant is OK receiving crypto.

Reality for now is that only a fraction of customers use crypto and of that, how many view crypto just as an investment and not as a means of payment? The clientele shrinks.

Then factor in the merchant side of things. What good is USDT/USDC if your suppliers don't accept it? Can you pay salaries or does your staff expect fiat? So you have to trade a bunch of that USDT/USDC to fiat, which introduces complications and costs.

The better move is to offer both options and ensure customers have a quick and easy time making whichever payment they want to make.

anotherone said:
anotherone said:
Transactions can't be blocked or frozen by validators like in centralized banking systems.
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This isn't just a good thing. You can effectively poison someone's wallet address by sending money to it from known criminal or sanctioned sources. Want to hurt your competition? Send money to them from known tumblers. Give them a compliance headache for weeks or months to come.

With a bank transfer or most other forms of fiat payment, you can refuse the payment before funds have cleared. Unless I've missed something, that's not supported by any blockchain. And if you have received illicit funds, you can't necessarily send it back because that could be seen as facilitating money transfer for illegal purposes.

I haven't heard of that happening, which doesn't mean it won't become a future headache.

Unfortunately, CBDC have a greater chance of mass adoption than traditional coins and tokens. Regulation and centralization offer benefits that both retail and enterprise customers expect.

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This is the probably the answer to your question.
 
anotherone said:
anotherone said:
The blue print would be the following:
Customy buys USDT => Buy your product / service instantly thanks to Solana(USDT) or Stellar network(USDC) => USDT amount is sent to your standalone wallet on your private server => You can then transfer to Binance / Kraken => Convert in your currency.
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Already exists - recently set up.

1) User pays by card (AML/Compliance), it auto pays out USDC
2) User pays by crypto - it auto does compliance and sends funds on minus fee(s) as USDC
 
Sols said:
Sols said:
Then factor in the merchant side of things. What good is USDT/USDC if your suppliers don't accept it?
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Pretty sure this is looking at from a Western perspective, if so, outside of the West, everyone wants $ not Euro or Pound or Yen etc.

They want $, USDC/USDT provides exposure (protection) to local currencies and they nearly all accept USDC/USDT if aware of it, either for all or partial, f**k my builder (friend) even mentioned he's going to start taking USDT for his projects in the future.

So if dealing in Africa, Asia, Middle East, South America, ask them do they want $ or local currency, they will say $, then say do they know of USDT (Tether) (its mainly tether wanted not USDC) and they will either come back with Yes or No.

If dealing in the West companies (say exporters/producers) want the local currency naturally...
 
wellington said:
wellington said:
Already exists - recently set up.

1) User pays by card (AML/Compliance), it auto pays out USDC
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Several cc processors settle in crypto today.
wellington said:
wellington said:
2) User pays by crypto - it auto does compliance and sends funds on minus fee(s) as USDC
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You don't need a middleman to receive crypto. Carry on your own DD and use simple methods to avoid flagging.

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
JohnnyDoe said:
JohnnyDoe said:
You don't need a middleman to receive crypto. Carry on your own DD and use simple methods to avoid flagging.
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Only makes sense if you are doing high value low volume transactions - for low value mid-high volume automation is key - plus you want to outsource AML so you are not liable if something is amiss.
 
wellington said:
wellington said:
Pretty sure this is looking at from a Western perspective, if so, outside of the West, everyone wants $ not Euro or Pound or Yen etc.
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My point was that USDT/USDC isn't fiat. So by taking crypto as a form of payment, you are either adding the costs and complexities of converting to fiat or you are limiting your selection of suppliers to just those that accept USDT/USDC. I'm well aware that more and more factories, producers, et cetera in Asia, Middle East, and Africa are taking crypto. It's just something to consider in discussing whether payment processors are superfluous in a world with stable coins. Look at the whole business from end to end, not just how you take payment from customers.

Toggle signature
This is the probably the answer to your question.
 
Houdini said:
Houdini said:
second that, a list would be great.
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  1. Wert
  2. Stripe
  3. SimpleSwap
  4. Ramp Network
  5. Mercuryo
  6. Transak
  7. MoonPay
  8. Banxa
  9. Guardarian
  10. Particle
  11. Utorg
  12. TransFi
  13. Alchemy Pay
  14. ChangeNOW
  15. Sardine
  16. Topper
  17. Unlimit
  18. Bitnovo
  19. Robinhood
  20. Coinbase
  21. UPI
  22. Interac
  23. Simplex
  24. Swipelux
  25. Kado
  26. Itez
 
anotherone said:
anotherone said:
Transactions can't be blocked or frozen by validators like in centralized banking systems.
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Wrong. USDT freezes a lot of wallets on an almost daily basis in millions of $ frozen. USDC is prone to the same thing. DAI was the only currency that was pegged to USD but n̶o̶w̶ (correction 30/03/2025, more info in next post) in the future it isn't out of the question to introduce freeze of such wallets too.

Sols said:
Sols said:
Sure, if you only want to sell to people who have/use crypto and as long as the merchant is OK receiving crypto.

Reality for now is that only a fraction of customers use crypto and of that, how many view crypto just as an investment and not as a means of payment? The clientele shrinks.

Then factor in the merchant side of things. What good is USDT/USDC if your suppliers don't accept it? Can you pay salaries or does your staff expect fiat? So you have to trade a bunch of that USDT/USDC to fiat, which introduces complications and costs.

The better move is to offer both options and ensure customers have a quick and easy time making whichever payment they want to make.


This isn't just a good thing. You can effectively poison someone's wallet address by sending money to it from known criminal or sanctioned sources. Want to hurt your competition? Send money to them from known tumblers. Give them a compliance headache for weeks or months to come.

With a bank transfer or most other forms of fiat payment, you can refuse the payment before funds have cleared. Unless I've missed something, that's not supported by any blockchain. And if you have received illicit funds, you can't necessarily send it back because that could be seen as facilitating money transfer for illegal purposes.

I haven't heard of that happening, which doesn't mean it won't become a future headache.

Unfortunately, CBDC have a greater chance of mass adoption than traditional coins and tokens. Regulation and centralization offer benefits that both retail and enterprise customers expect.
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Click to expand...
Sols said:
Sols said:
My point was that USDT/USDC isn't fiat. So by taking crypto as a form of payment, you are either adding the costs and complexities of converting to fiat or you are limiting your selection of suppliers to just those that accept USDT/USDC. I'm well aware that more and more factories, producers, et cetera in Asia, Middle East, and Africa are taking crypto. It's just something to consider in discussing whether payment processors are superfluous in a world with stable coins. Look at the whole business from end to end, not just how you take payment from customers.
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Really well written outlining very real business risks. The only thing I would add is if you have an automated system for processing crypto, you can actually refund to originating address. There is more complexity if it's sent from multiple addresses and further that it is impossible to know from which address you received e.g Monero, but for USDT/USDC you can definitely return to originating address and not face any AML penalties. Now this would of course depend on the country, laws etc. but in general AML falls in the crypto processors duties, not yours as a business.

There are also issues with a lot of processors refusing random transactions even if they are low AML score. Known as the KYC scam. Bitpay are perfect example for such poor behavior and why they should be avoided like the plague. Coingate used to be good but now they follow same model.

In general USDT and USDC are worse for payments because they can be controlled directly (pre-cursors to digital dollars, yuan etc. if you ask me) and the need for processors will always exist even in the crypto world.

Last edited: Mar 30, 2025
 
The DAI contract still doesn't have any freeze function btw.
 
rss said:
rss said:
The DAI contract still doesn't have any freeze function btw.
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You're correct it hasn't been added to DAI as of yet (30/03/2025), I've made correction on my original post. I hadn't followed what was going on with their organization at all ever since they announced to support such functionality even though that would be on their new token USDS. As of yet there isn't freeze function on USDS either but that is definitely planned.

In my eyes when such discussions are had by team leaders nonetheless that shows their views & plans and as such I had withdrawn all of my DAI and considered the proejct dead when the news circulated. I suggest everyone to read the post by rune

https://forum.sky.money/t/usds-and-puredai-the-two-paths-for-decentralized-stablecoins/24987

Essentially their goal is to make USDS the "legal" DAI and DAI to be transformed into PureDAI - what DAI should have been in the first place. My prediction is there would be actions to outlaw or undermine DAI/PureDAI as soon as USDS settles in, making only the "legal" version useable. Although there is some partial precedent with Monero that won't always work, how that would play out for a "stablecoin" scenario is yet to be seen. Currently DAI can be used as always but its leadership and direction don't inspire a lot of confidence and their collateral isn't that great either. Not a project I would personally hold 7 figures or up business or otherwise.
 
wellington said:
wellington said:
Sure if i log in next time.

otherwise download this similar processor: https://card2crypto.org/
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CryptoKnight said:
CryptoKnight said:
This is awesome. Do you have any personal experience in using the above service?
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UPDATE: I have tried the mentioned plugin now on several of my websites and unfortunately the experience has been bad. Out of about 20 orders only 2 have been able to follow through. The rest has had their cards declined for various reasons. This is most likely because the banks issuing the cards doesn't allow the purchase of crypto. Most of my clients are from Scandinavia where banks hate crypto.
 
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