# kaal:claim:3396522-038

**Claim.** Merchant adoption of stable cryptocurrencies turns on a concrete threshold: merchants pay 2.9 percent to credit card companies on non cash transactions, so any medium of exchange costing less than 2.9 percent benefits merchants, who can pass the saving to consumers as a discount.

**Type.** mechanism  **Support.** argued

**Holds when.**

- assumes exchange rate risk for the consumer stays below the 2.9 percent threshold

**Source quote.**

> In the existing digital commerce, merchants pay 2.9% to the credit card company for any transaction involving non-cash transfer with credit cards. Merchants would benefit from any medium of exchange that requires them to pay less than that 2.9%.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies* (2019), IV. Stable Cryptocurrencies, 11. Supporting Mass Adoption, page 49

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

**Verify.** sha256 of source PDF `ef5031b16aa53476ed618f0bdf92601cd4affb893692c701134bd9cba3ea8acf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies.pdf

**Topics.** risk-and-incentives

**Keywords.** merchant-adoption, payment-fees, credit-cards, incentive-design, atomic-swaps

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