Payment processing giant Stripe has made a return to the cryptocurrency space, announcing the reintroduction of crypto payments for US businesses after a six-year hiatus.
Merchants can now accept USD Coin (USDC), a stablecoin pegged to the US dollar, through various blockchain networks including Ethereum, Solana, and Polygon. This move signals a renewed embrace of digital currencies by a major player in the payments industry and has generated excitement within the crypto community.
Jeremy Allaire, CEO of USDC issuer Circle, expressed his enthusiasm on X, stating: “Official launch and support for USDC payments in Stripe products rolling out for businesses in the U.S. Very exciting to see how this unfolds!”
Source: X
Stripe’s previous foray into crypto payments began in 2014 with Bitcoin support, but the feature was discontinued in 2018 due to concerns over Bitcoin’s volatility, slow transaction speeds, and high fees. The company’s renewed focus on stablecoins, specifically USDC, aims to address these earlier challenges. USDC’s price stability and faster transaction capabilities offer a more practical and user-friendly experience for both businesses and consumers.
The new feature allows businesses to accept USDC payments from customers in over 150 countries, expanding their global reach and catering to the growing demand for crypto payment options. Stripe automatically converts USDC payments into US dollars for merchants, eliminating the need for them to handle cryptocurrency directly. This streamlined approach simplifies the integration process and reduces potential risks associated with managing digital assets.
Stripe product lead Jeff Weinstein acknowledged the delayed rollout on X, humorously stating: “When we said ‘coming this summer’, we meant San Francisco summer, which is ~October.” The feature is integrated across various Stripe products, including Stripe Checkout, Elements, and the Payment Intents API, ensuring a smooth and familiar experience for businesses already utilizing Stripe’s services. Support for Stripe’s subscription feature is also planned for the future, further expanding the utility of USDC payments for recurring billing and subscription services.
Source: X
This move by Stripe follows in the footsteps of its rival PayPal, which expanded its services to include crypto rails for transactions in 2021. The reintroduction of crypto payments by a major player like Stripe is a significant development for the cryptocurrency industry, potentially paving the way for wider adoption of digital currencies in everyday commerce.
Beyond USDC, Stripe has also been actively exploring other integrations within the crypto space. In June, the company partnered with Coinbase to incorporate the crypto exchange’s Layer 2 network, Base, into its crypto payout products and enable users to purchase digital assets with credit cards or Apple Pay within the Coinbase Wallet. Stripe has also integrated with the Avalanche blockchain network, providing easier access to the Avalanche ecosystem for its retail customers. Ava Labs, the development company behind Avalanche, announced that its Core wallet would utilize Stripe’s fiat-to-crypto onramp services.