Stripe Brings Back USDC Payments After Six-Year Gap

Global payments giant Stripe has officially reinstated crypto payments after a six-year hiatus. Stripe now supports payments in USD Coin (USDC), a stablecoin pegged to the US dollar, on the Ethereum, Solana, and Polygon networks.

This feature is available to US-based businesses and allows them to accept stablecoin payments from customers in over 150 countries while receiving settlements in US dollars.

This greatly simplifies crypto transactions and allows merchants to handle payments without needing to directly manage or convert digital assets themselves.

This latest feature comes after Stripe initially discontinued Bitcoin payments in 2018 due to concerns over transaction speeds, fees, and volatility.

Crypto For Businesses: Stripe USDC Payments

Jeff Weinstein, Stripe's product lead, announced in an X post that "crypto on Stripe is officially back,"

okee, crypto on @stripe is officially back!

– accept stablecoins from 150+ countries
– buyers pay in usdc (via ethereum, solana, polygon)
– you, as a usa business, receive usd
– works with checkout, elements, or payment intents (and soon subscriptions)

see a live demo:… https://t.co/zPyQyAMvJd

— Jeff Weinstein (@jeff_weinstein) October 9, 2024

Stripe’s new "Pay with Crypto" feature is designed to streamline crypto transactions by converting USDC payments into fiat currency.

Businesses will see these payments settle in their Stripe balance in USD, eliminating the complexities often associated with holding and converting cryptocurrency.

This integration supports Stripe Checkout, Payment Elements, and Payment Intents API, allowing businesses to seamlessly offer crypto payments alongside traditional payment options.

In addition to simplifying transactions, Stripe has introduced key features such as zero dispute liability for businesses, and the ability for returning customers to enjoy one-click checkout through Link, Stripe's customer identity service.

This adds a layer of convenience to the growing number of stablecoin payments.

Transaction limits are capped at $10,000 per transaction and $100,000 per month, with Stripe charging a 1.5% transaction fee.

The company has rolled out the feature to hundreds of thousands of US-based businesses, with plans to expand support to additional countries soon.

Stripe's Renewed Crypto Strategy

Stripe is now back to fully fight its competitors like PayPal, which has been offering crypto transactions since 2021.

Like PayPal, Stripe is now enabling merchants to benefit from the growing adoption of stablecoins, particularly USDC, which is widely used for its price stability and compatibility with decentralized finance (DeFi) ecosystems.

Before now, Stripe cited issues with Bitcoin's volatility, high transaction fees, and slow processing speeds as reasons for discontinuing support for crypto payment.

However, the resurgence of stablecoins like USDC, which maintain a stable value pegged to fiat currencies, has offered Stripe a new opportunity to meet the growing demand for crypto payments without the same concerns about volatility.

With USDC's growing role in cross-border payments and decentralized finance, Stripe is positioning itself as a major player in the stablecoin space.

The company's integration of USDC on Ethereum, Solana, and Polygon networks allows it to tap into a wide range of use cases, from traditional e-commerce to blockchain-based financial services.

As part of its long-term strategy, Stripe has hinted at expanding its crypto offerings.

This includes plans to support crypto subscriptions, lending, and other financial products that leverage stablecoins.

Stripe's future developments could also include expanding beyond the US market, as Jeff Weinstein suggested that the company plans to introduce this feature in other regions soon.

Notably, earlier this year, Bitstamp partnered with Stripe to simplify cryptocurrency purchases for European consumers, streamlining the conversion process from fiat currency to crypto.

Similarly, Coinbase and Stripe partnered as well to introduce three key features: USDC support on Base for faster international money transfers, a fiat-to-crypto onramp for easier currency conversion into digital assets, and the ability for Stripe users to purchase crypto directly using credit cards or Apple Pay.

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