USDC Support on Multiple Networks

TLDR

• Stripe reintroduces crypto support after 6-year hiatus
• Businesses can now accept USDC payments in 150+ countries
• Initial support for Ethereum, Solana, and Polygon networks
• Payments automatically converted to fiat for merchants
• $10,000 per transaction limit with 1.5% fee

Stripe, the global payments giant, has made a significant move in the cryptocurrency space by reintroducing support for digital asset payments after a six-year break.

The San Francisco-based company announced on Wednesday that it has fulfilled its April commitment to bring back crypto support, allowing businesses to accept USD Coin (USDC) from customers in over 150 countries.

Jeff Weinstein, Stripe’s product lead, shared the news on Twitter, stating, “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

He added that the feature is being rolled out to hundreds of thousands of US businesses, with plans to expand to additional countries in the near future.

This development marks a notable shift in Stripe’s stance on cryptocurrencies.

The company first began supporting Bitcoin payments in 2014 but discontinued the service in 2018 due to concerns over market volatility, slow transaction speeds, and high fees.

Now, Stripe is re-entering the crypto market with a focus on stablecoins, specifically USDC.

The new “Pay with Crypto” feature allows businesses to integrate stablecoin payments through various Stripe products, including Stripe Checkout, Elements, and the Payment Intents API.

Initially, Stripe will support payments using USDC across three major blockchain networks: Ethereum, Solana, and Polygon.

To simplify the process for merchants, Stripe automatically converts stablecoin payments into fiat currency and settles them via the merchant’s Stripe account.

This approach aims to make crypto transactions more accessible and user-friendly for businesses that may not be familiar with handling digital assets directly.

Stripe has set some limitations on crypto payments to ensure responsible use of the feature. The current payment limits are set at $10,000 per transaction and $100,000 per month.

The company charges a 1.5% transaction fee for these crypto payments, according to information provided on their product page.

This move by Stripe follows in the footsteps of its rival, PayPal, which expanded its services to include crypto rails for transactions in 2021.

PayPal’s “Checkout With Crypto” feature allows customers to make purchases at millions of merchants worldwide using cryptocurrencies.

In addition to USDC support, Stripe has also integrated with the Avalanche blockchain network. This integration will provide Stripe’s retail customers with easier access to the Avalanche ecosystem.

Ava Labs, the development company behind Avalanche, announced that its wallet, Core, would use Stripe’s fiat-to-crypto onramp services.

The reintroduction of crypto support by Stripe represents a significant shift in the company’s approach to digital assets.

By focusing on stablecoins like USDC, Stripe aims to address the concerns that led to its previous withdrawal from the crypto space, such as price volatility.