Stripe is back into the crypto game, after promising to add stablecoins back in April. The service will unroll crypto payments for US businesses.
Stripe, one of the actively growing fintech services, will add crypto payments. The new service will accept stablecoins from 150 countries, accepting Circle’s USDC. The first recipients in fiat will be US businesses, before unrolling the service to more countries. USDC payments will be processed through Ethereum, Polygon, and Solana. Stripe has not mentioned Base, one of the most widely used chains for issuing USDC payments.
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
The token is considered one of the most transparent stablecoins for payments, with a mix of traceable fiat backing and some reserves in low-risk T-bills.
Stripe was one of the fintech services to become an early adopter of crypto. However, back in 2018, the company divested its coin and token service, missing out on the first bull market. Stripe thus missed at least several bullish periods with record prices, but also the most turbulent bear market and crashes from 2022. The six-year absence ended in 2024, when other fintech services were already comfortably offering crypto options for e-commerce or trading.
Stripe started exploring crypto payment options back in 2022, with a fiat-to-crypto service. Stripe has processed fiat payments to crypto services, NFT exchanges, and other trading venues. The service handled KYC and fraud protection for Web3 projects, to avoid using a mix of third-party services.
Stripe was also handling payouts from exchanges and crypto brokerages. For the first time, however, Stripe has partnered to redeem USDC and pay US merchants in fiat, while accepting USDC internationally. Stripe will not offer trading services or investment options.
After the new feature is unrolled, merchants will be able to add a crypto payment button, as an alternative to regular card payments. Adding a direct crypto option may extend the usage of Stripe as an onboarding tool for Web3 projects. Going through that payment option will also decrease the potential for fraud.
Stripe already grows crypto payments
The new crypto payment option is already live on Stripe dashboards and for end users. Payments have been registered from 75 countries in total, giving more options for US-based businesses to bill clients.
Fun fact: In the first 24 hours, customers from 70+ countries have paid with stablecoins through @Stripe
Today, we just expanded access, so if you’re a US merchant on Stripe, check your Stripe dashboard and turn on “Pay with Crypto”! pic.twitter.com/XZKOertvmj
— Jen (@BackseatVC) October 9, 2024
Stripe is a product tailored to Internet users, some content creators, and the owners of businesses with a borderless model. Stripe aims to process payments for any business, from personal operations and startups to established companies.
It is up to the merchants to select the USDC option, and there is no guarantee that some of the large partners of Stripe would be comfortable with crypto payments.
In addition to the regular Stripe screening, USDC also has its own KYC procedures. All Stripe accounts need verification to be able to make and process payments. Stripe expanded during some of the most active years for the growth of fintech companies. The service differentiated itself with easy integration for businesses and e-commerce companies. Stripe also included automated fraud protection and payment subscriptions.
The global fintech industry is predicted to reach more than $340B in 2024 and surpass 1 trillion in 2032. Stripe is one of the most aggressively growing companies, boosting its activity and revenues from new markets. In 2023, Stripe increased its market in Japan by 50%, while adding other new markets.
As of 2024, 2.84M websites use Stripe, and more than 100 companies have turnovers of above $1B coming through the platform. Even if a fraction of those companies switches on the USDC option, it could boost crypto adoption.
Stripe surpassed $1 trillion in payments in 2023, about 10 years faster than PayPal. The company tapped the most active years of e-commerce and fintech growth, achieving unicorn status just three years after its launch.
Stripe’s history also coincides with the adoption of crypto assets, as the company launched in the same year as Bitcoin (BTC). The payment giant is still a private company, despite expectations for announcing an IPO in 2024. Stripe stock is only available to accredited investors.
USDC is currently held in more than 2.35M wallets and is considered a fintech-adjacent stablecoin, compliant in most jurisdictions. More than 34.77B USDC are in circulation, with 25.4B on the Ethereum chain. Crypto tokens are not considered competition to fintech, but instead a useful addition.
Source: https://www.cryptopolitan.com/stripe-is-back-in-the-crypto-game-starts-accepting-usdc/