Crypto Payment Adoption: The Beginning of Layer 2 Adoption

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3 years ago

Payment giant Stripe to start a new crypto division to prepare massive adoption. Digital payment companies see the opportunity of using crypto and position themselves as a financial service for the new generation of money.


Payment companies are digital accounting companies

Payment companies are not special. They are using technology to track financial data between parties. They are processing data rather than payments for you. They submit the final transactions to banks or whoever custody your money.


The same technology applies to crypto transactions

Payment companies can do exactly the same thing to crypto transactions. They can continue processing payment data in crypto and finalize transactions for you.


Layer 2 of the crypto transaction is more flexible than fiat currency

You need to pay fraction fees to use fiat currency layer 2 or credit card services. The cost is factor into your purchase which makes good more expensive. However, using cryptocurrency layer 2 can be cheaper if the transaction fee is low with advanced technology.


You control your own money

With cryptocurrency, you are your own custodian and secure your money. Payment companies only finalize transactions with outstanding fees with the address you require to transfer money into.


Scale up the crypto

With the join of payment companies, crypto can expand faster into commercial daily operations. Other companies can also join crypto since payment companies may take more risks of transacting crypto payments for them. 


Banks are out of the picture

Eventually, payment companies will replace banks because of better user experience and customer services. You no longer need someone to custody your money. 


In conclusion

Payment companies are playing important roles in crypto adoption. It pushes expansion of adoption into companies and mainstream. Upscaling of crypto has begun.


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