Global payments giant Stripe has reintroduced crypto payments after a six-year break. The company now supports payments in USD Coin (USDC), a stablecoin tied to the US dollar, across the Ethereum, Solana, and Polygon networks.
Simplified Transactions for Businesses
This new feature is available to US-based businesses, enabling them to accept stablecoin payments from customers in over 150 countries. Merchants will receive settlements in US dollars, simplifying the crypto transaction process. Businesses no longer need to manage or convert digital assets directly, making it easier to handle payments.
Stripe had previously discontinued Bitcoin payments in 2018, citing concerns over transaction speeds, fees, and volatility. However, the introduction of USDC marks a shift in Stripe’s strategy regarding cryptocurrency.
Announcing the Return of Crypto Payments
Jeff Weinstein, Stripe’s product lead, confirmed the return of crypto payments in a post on X. He stated, “crypto on Stripe is officially back,” highlighting the following features:
- Accept stablecoins from over 150 countries
- Customers pay in USDC via Ethereum, Solana, or Polygon
- US-based businesses receive payments in USD
- Compatibility with checkout, elements, and payment intents, with subscriptions coming soon
For a live demonstration, Jeff Weinstein shared a link on X.
Streamlined Payment Processing
Stripe’s new “Pay with Crypto” feature aims to simplify crypto transactions by converting USDC payments into fiat currency. This integration allows businesses to see these payments settled in USD within their Stripe balance, eliminating the challenges often associated with holding and converting cryptocurrencies.
The new feature supports Stripe Checkout, Payment Elements, and the Payment Intents API, making it easier for businesses to offer crypto payments alongside traditional payment options.
Enhancing Customer Convenience
In addition to simplifying transactions, Stripe has introduced several important features. These include zero dispute liability for businesses and the ability for returning customers to utilize one-click checkout through Link, Stripe’s customer identity service. These enhancements further improve the experience for customers making stablecoin payments.
Transaction limits are set at $10,000 per transaction and $100,000 per month, with Stripe charging a 1.5% transaction fee. The company has rolled out this feature to hundreds of thousands of US businesses, with plans for expansion into other countries soon.
Competing with Industry Giants
Stripe’s return to the crypto market positions it to compete directly with companies like PayPal, which has offered crypto transactions since 2021. Both companies enable merchants to benefit from the rising popularity of stablecoins, particularly USDC, known for its price stability and compatibility with decentralized finance (DeFi) ecosystems.
Previously, Stripe cited Bitcoin’s volatility, high transaction fees, and slow processing speeds as reasons for withdrawing crypto payment support. However, the stable nature of USDC has allowed Stripe to meet the increasing demand for crypto payments without the volatility concerns associated with Bitcoin.
Future Developments in Crypto Offerings
With USDC gaining traction in cross-border payments and decentralized finance, Stripe positions itself as a significant player in the stablecoin market. The company’s integration of USDC on Ethereum, Solana, and Polygon networks opens up various use cases, from traditional e-commerce to blockchain-based financial services.
Stripe has indicated plans to expand its crypto offerings, including the potential to support crypto subscriptions, lending, and other financial products that utilize stablecoins. Jeff Weinstein also suggested that Stripe intends to introduce these features in additional regions soon.
Earlier this year, Bitstamp partnered with Stripe to simplify cryptocurrency purchases for European consumers, enhancing the conversion process from fiat currency to crypto. Additionally, Stripe and Coinbase collaborated to launch three key features: USDC support on Base for quicker international money transfers, a fiat-to-crypto onramp for easier currency conversion, and the ability for Stripe users to purchase crypto directly using credit cards or Apple Pay.
The post Stripe Brings Back USDC Payments After Six-Year Gap appeared first on Cryptonews.
