Solana Labs, the entity behind high-speed blockchain Solana (CRYPTO: SOL), has launched a new payments protocol that will let merchants accept crypto payments directly from consumers.

What Happened: In an announcement on Tuesday, Solana unveiled Solana Pay which will let merchants accept USD Coin (CRYPTO: USDC), SOL, and other crypto tokens built on the Solana blockchain.

Solana Pay is a result of a partnership with stablecoin issuer Circle, Checkout.com, and Citcom as well as wallet integrations with Phantom and FTX.

Why It Matters: Sheraz Shere, Solana’s head of payments and former head of partnerships at Alphabet Inc Class A (NASDAQ: GOOGL) Google Wallet, said the solution is bigger than enabling consumers to “pay with crypto.” 

“Rather, this is about a vision where all currencies – including U.S. dollars – are on-chain and used for a wide range of transactions,” he said.

Bank of America analyst Alkesh Shah argued that Solana’s low transaction fees, ease of use, and scalability could help it take market share away from Ethereum (CRYPTO: ETH).

Price Action: At press time, SOL was trading at $110.38, gaining 3.38% in the last 24 hours. SOL has rallied by 13% in the last seven days, outperforming the wider crypto market.

Also Read: Coinbase To Support Solana Ecosystem: Report