As a seasoned crypto investor with over six years of experience under my belt, witnessing Stripe’s recent pivot to USDC payments has been nothing short of exhilarating. After years of avoidance, it seems the global payments giant is finally embracing the digital currency revolution.
Previously shying away from Bitcoin transactions for six years, international payments leader Stripe has made a significant shift in strategy by embracing USD Coin (USDC) as a viable payment option starting Wednesday. This change means that Stripe’s customers across more than 150 countries can now make payments using USDC.
Stripe Facilitates USDC to Fiat Payment
Stripe’s product lead, Jeff Weinstein, took the initiative to announce the new development on X.
He announced that Crypto on Stripe has returned! Starting today, we’re making it available to hundreds of thousands of businesses in the United States. International rollouts are planned gradually in the near future.
In April, Weinstein initially suggested that Stripe was considering bringing back crypto support. He emphasized that they intended to incorporate USDC stablecoin payments into their checkout system. Once these USDC transactions are processed, they will be instantly converted to fiat currency. All USDC transactions will be facilitated through the Ethereum, Solana, and Polygon blockchain networks.
As a crypto investor, I’m excited about the recent move by Stripe to emulate PayPal by introducing crypto payment options. Just like PayPal’s “Checkout With Crypto” feature, this allows users worldwide to make purchases from merchants. For businesses using Stripe, the new “Pay with Crypto” feature now enables them to accept stablecoin payments seamlessly through Stripe Checkout, Elements, or the Payment Intents API. This development is another positive step towards mainstream crypto adoption!
For each transaction, users are restricted to spending up to $10,000, while their monthly limit stands at $100,000. As indicated on Stripe’s website, a fee of 1.5% is charged for each transaction.
By integrating with Circle, the issuer of USDC, I foresee an increase in traction for this stablecoin, potentially intensifying competition with Tether (USDT). For me, as an analyst, it’s clear that this move signifies a strategic step for Stripe to broaden its global footprint. This action aligns with the principle of financial inclusion, enabling seamless, swift, and dependable transactions for customers worldwide.
The service will play out even without a bank account or credit card.
Stripe and Web3 Partnerships and Integrations
Two months past, I was part of the announcement made by the financial infrastructure platform regarding a strategic collaboration with Bitstamp. This partnership aims to fortify our presence across Europe. As a web3 developer, this alliance presents an exciting opportunity for us. We can now incorporate a customizable widget into our products, thereby allowing for smooth conversion of cryptocurrencies and immediate transaction settlements.
The pair initially invested in a range of digital currencies: Bitcoin ($60,939) with a 24-hour volatility of 2.0% and a market cap of $1.20T, Ethereum ($2,386), also with a 24-hour volatility of 2.0% but a smaller market cap of $286.97B, Solana ($138.5) showing a higher 24-hour volatility of 3.2%, a market cap of $64.97B, and daily volume of $2.04B, USDC, as well as Stellar Lumen ($0.09), with a 24-hour volatility of 1.8%, a market cap of $2.64B, and daily volume of $45.58M. Their strategy for adding more cryptocurrencies may depend on market conditions, while Stripe’s UK users have been exempted in accordance with regulations.
The collaboration of the payment company encompasses various Web3 sites such as MetaMask, Blockchain.com, Magic Eden, and Nifty Gateway, among others. In 2021, Stripe added Avalanche to its services, thereby extending its capabilities to accommodate transactions on the Avalanche C-Chain.
Users are now able to effortlessly add funds to their wallets using Stripe’s onramp, supporting cryptocurrencies like AVAX and others, without the need for a traditional crypto exchange. This update provides users with a simple gateway to various crypto services and Decentralized Applications (dApps).
“In this context, we’re talking about Decentralized Exchanges (DEX), digital wallets, as well as Non-Fungible Token (NFT) platforms that operate on the Avalanche network.
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2024-10-10 13:11