Payment processing giant Stripe has announced its return to the crypto space, reintroducing crypto payments for U.S. businesses after a six-year hiatus.
Merchants can now accept USD Coin (USDC), a stablecoin pegged to the US dollar, through various blockchain networks such as Ethereum, Solana, and Polygon. The move signals a new acceptance of digital currencies by major players in the payments industry and has sparked excitement within the cryptocurrency community.
Jeremy Allaire, CEO of USDC issuer Circle, expressed his enthusiasm for X, saying: “Official launch and support for USDC payments in Stripe products rolling out to U.S. businesses. We're excited to see how this plays out!”
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Stripe's previous foray into crypto payments began with support for Bitcoin in 2014, but this feature was moved in 2018 due to concerns over Bitcoin's volatility, slow transaction speeds, and high fees. Canceled. The company’s new focus on stablecoins, specifically USDC, is aimed at addressing these nascent challenges. USDC's price stability and fast trading capabilities provide a more practical and user-friendly experience for both businesses and consumers.
This new feature will enable businesses to accept USDC payments from customers in over 150 countries, expanding their global reach and meeting the growing demand for cryptocurrency payment options. Stripe automatically converts USDC payments to US dollars for sellers, eliminating the need for sellers to process cryptocurrencies directly. This streamlined approach simplifies the integration process and reduces potential risks associated with managing digital assets.
Jeff Weinstein, head of product at Stripe, acknowledged the slow rollout of X, saying, “When I said 'coming this summer,' I meant the San Francisco summer, which is ~October.” he said with humor. This feature is integrated into a variety of Stripe products, including Stripe Checkout, Elements, and the Payment Intents API, ensuring a smooth and familiar experience for businesses already using Stripe's services. In the future, support for Stripe's subscription functionality is also planned, further expanding the usefulness of USDC payments for recurring billing and subscription services.
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Stripe's move follows in the footsteps of rival PayPal, which expanded its services in 2021 to include crypto rails for transactions. The reintroduction of cryptocurrency payments by major players like Stripe is an important development and could pave the way for the cryptocurrency industry. Toward expanding the spread of digital currency in daily commerce.
Beyond USDC, Stripe has also been actively exploring other integrations within the crypto space. In June, the company partnered with Coinbase to incorporate Base, a Layer 2 network of cryptocurrency exchanges, into its cryptocurrency payout product, allowing users to purchase digital assets using credit cards or Apple Pay within Coinbase Wallet. I made it. Stripe also integrates with the Avalanche blockchain network, giving retail customers easy access to the Avalanche ecosystem. Ava Labs, the developer of Avalanche, announced that its Core wallet will utilize Stripe's fiat-to-crypto on-ramp service.
