- Afterpay told the Australian Senate that cryptocurrencies could help retailers cut down on costs.
- It also said that the government should “create a framework for an AUD-backed stablecoin.”
- Afterpay emphasized cryptos could also cut fees on traditional payment methods like card issuer and banking fees.
The Australian firm, Afterpay, told the Senate in a submission that cryptos could cut costs for retailers and merchants. The firm said that using blockchain-based transactions would also cut other fees in the common payment methods. This includes card issuer, network operator, as well as banking fees.
Merchants stand to benefit considerably from the cryptocurrency model, as card network fees are entirely removed from the equation and the customer/payer bears the transaction costs.
Afterpay says this crypto model will allow customers to front validating payments, as well. However, it will not come cheap. The kind of crypto the blockchain uses will affect the cost. Also, the kind of transaction it uses. Not to mention, the congestion level of the blockchain when in use.
More so, if this happens, Afterpay believes that the transactions would be more transparent. It says
This would allow customers to wait for more favourable network conditions and a lower cost before making any kind of transaction.
Afterpay also mentioned in the submission that it “does not currently offer crypto related products” but is actively “considering” entering the crypto space. With this, Afterpay says that Australia not having an AUD-backed stablecoin is “unlikely to remain true for long.”
Furthermore, it says the objective is to regulate crypto in a way that does not stifle Australia’s fintech innovation. More so, this inquiry investigates other benefits that it can give and the impacts it can make.