Solana has moved a step further towards the adoption of its payments by being integrated into the Machine Payments Protocol (MPP), a protocol developed by Stripe and Tempo.
The integration enables developers using the Solana/MPP toolkit to accept any Solana-based stablecoin as a form of payment. The move makes it easier to build automated payments directly into apps and services.
What does the update include?
At its heart, the update is about allowing payments that occur automatically in the background.
Rather than the individual manually approving every payment, the idea is that machines, software, or digital services can pay each other instantly as a service is consumed.
It could be applicable to many different situations, including smart devices paying for data usage, artificial intelligence tools paying for usage of the service, or even subscription-based services making small payments continuously.
These types of transactions are referred to as microtransactions; however, it is likely that they will become more important in the future.
By allowing the stablecoins to be created on the network, the system enables businesses to move money in a stable fashion without the need for traditional banking systems.
It also enables developers to more easily integrate payment systems into their applications because the infrastructure is already integrated.
To put it simply, Solana wants to be the background processor for the payment systems so that the user can focus on the service being provided without having to worry about the payment process.
What does it mean for Solana?
If the Machine Payments Protocol catches on, it could provide a constant stream of activity for the network. This is important because each and every one of them requires a small fee paid out in the network’s native currency, SOL. More activity could therefore potentially mean more interest in the currency.
On a broader scale, this is part of the push by the Solana network to become a major player in the world of digital payments.
As the world looks for ways to use blockchain technology, especially as it relates to things like automation, connected devices, and AI-based services, a network that can provide for quick and inexpensive transactions is likely to be at the center of the discussion around the future of payments.