As a researcher who has been closely observing the digital payments landscape for quite some time now, I find Stripe’s latest move to be a strategic and timely decision. The company’s return to offering crypto-based payment processing, particularly with USDC transactions across three major blockchains, is a significant step towards mainstream adoption of cryptocurrencies.
Payment service company Stripe now supports international USDC transactions, allowing American businesses to receive payments using Ethereum (ETH), Solana (SOL), or Polygon (POL) as methods.
USDC Payments Across Three Major Blockchains
This innovative feature empowers American businesses to accept USDC payments from clients residing in more than 150 nations. Notably, these transactions are ultimately settled in U.S. dollars. Companies can effortlessly incorporate this feature into their existing operations through Stripe’s diverse suite of platforms, which encompass checkout, elements, and payment intents.
Jeff Weinstein, Stripe’s Head of Product, announced the move on social media platform X, stating,
“Crypto on Stripe is officially back! Accept stablecoins from 150+ countries. Buyers pay in USDC… You, as a USA business, receive USD.”
The company will once again provide crypto-payment processing services, having halted Bitcoin support in 2018. This move is projected to advantage numerous U.S. businesses by offering them a streamlined method to receive stablecoins across various blockchains, without the necessity for them to personally hold or exchange the digital currency.
A Strategic Return to Crypto
Back in 2014, Stripe made its first steps into the world of cryptocurrency by becoming one of the initial payment systems that accepted Bitcoin. Yet, by the year 2018, the company decided to stop supporting Bitcoin. The reasons behind this decision were the sluggish transaction speeds, high charges, and instability (volatility) associated with Bitcoin transactions. Now, Stripe’s return to cryptocurrency payments is a component of their larger plan to bolster their blockchain services.
In April, John Collison, Stripe’s co-founder and president, subtly suggested the company’s intention to reinstate payments using USDC (a stablecoin). The recent launch of this service for American businesses indicates that these plans are now being implemented, demonstrating Stripe’s increasing involvement in the adoption of stablecoins.
Expansion of Crypto Features
In the last few months, Stripe has been steadily improving its offerings in the cryptocurrency sector. For instance, their European branch introduced a tool in July, which lets EU-based online merchants accept multiple cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This action was preceded by an announcement in April about USDC payments and Stripe’s collaboration with Coinbase in June. During this partnership, Stripe integrated Coinbase’s Layer 2 network, Base, into its payment solutions. As a result, customers can now buy digital assets using credit cards or Apple Pay via the Coinbase Wallet.
As stated on Stripe’s site, the Pay with Crypto function streamlines payment processes for businesses by enabling them to handle digital asset transactions without needing to manage or personally possess the cryptocurrency.
Stripe’s official statement reads,
It’s straightforward for you to receive USDC payments across networks like Ethereum, Solana, and Polygon. You won’t have to worry about managing or exchanging cryptocurrency into traditional money yourself.
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2024-10-11 17:10