Stripe, a payment processing company, has partnered with Twitter. The digital payment platform is pushing cryptocurrency to the front of the line by allowing its users to be paid in USDC by merchants who accept their payments service. With effect from yesterday, Twitter will enable certain creators to get paid for Ticketed Spaces, and Super Follows features through a crypto wallet.
Stablecoin Payments
According to the data collected by the Crunchbase unicorn board, which ranks the world’s most valuable private companies, Stripe is the fifth-largest startup with a valuation of around $95 billion. It’s also the second-most valued unicorn in the US.
Although Twitter is the first company to accept payments using the stablecoin USDC, other companies could follow suit if the company’s pilot program with Stripe is successful.
Online payments company Square said Friday it would allow merchants to make payments using the stablecoin USDC, which Circle, a crypto firm, owns. A stablecoin is a type of token backed by a fixed amount of money. For instance, in the case of USDC, it is backed by the US dollar.
The partnership between Square and Circle comes as Twitter is in the midst of a debate about its future. Elon Musk, the CEO of electric car maker Tesla, reportedly wants to take the company private.
According to Stripe’s announcement, Twitter will allow creators to earn money through the Connect feature by having their earnings sent to a cryptocurrency wallet. Stripe will handle all of the complex operations related to cryptocurrency. No changes are required to the platform’s code, and it will allow platforms to avoid taking on the risks associated with handling crypto.
Stripe is Embracing Crypto
Despite its initial skepticism, Stripe has started to embrace cryptocurrencies due to the hype surrounding Web3. This concept proposes that a decentralized internet can be created using blockchain technology.
After halting its support for bitcoin in 2018, payment processing firm Stripe is now testing out new digital currencies. The company had noted that it could no longer handle the digital currency’s volatility due to its lack of efficiency.
Last year, the firm formed a dedicated team to explore Web3 and cryptocurrencies. In November, co-founder John Collison hinted that the company might support cryptocurrencies again.
While the concept of a store of value is still widely discussed, the company believes that cryptocurrencies could also serve as financial tools that can expand the reach of financial services. In a blog post-Friday, product manager Karan Sharma noted that the firm was exploring ways to integrate cryptocurrencies into its platform.
The firm will allow users to pay with cryptocurrencies using its blockchain through its new feature. The payments process will be carried out on the company’s Polygon network, a layer two solution that uses the Ethereum network.
Due to the high fees and sluggish transaction times associated with cryptocurrencies, many users have criticized the system. Sharma noted that the firm plans to add support for other payment methods in the future.
Stripe is Growing and Expanding
In 2022, analysts expect Stripe to support other cryptocurrencies and expand its reach to more than 120 countries. In 2019, the company raised $600 million in a fundraising round valued at around $95 billion. In 2021, it processed $640 billion in payments.
Esther Crawford, working as Product Lead for Creators, tweeted, “We want creators to get paid in the way that works best for them, which is why we are excited to partner with @Stripe to offer crypto payouts for our monetization products. Creators can now get paid out in USDC for money earned with @SuperFollows & Ticketed @TwitterSpaces”.
Source: https://crypto.news/stripe-partners-twitter-usdc-stablecoin-payments/