- Stripe has started supporting crypto payments again, beginning with the stablecoin $USDC on Ethereum, Polygon, and Solana networks.
- Stripe brings back crypto payments after it dropped support for Bitcoin ($BTC) in 2018.
- Stripe aims to simplify crypto payments by automatically converting stablecoin transactions into fiat.
After dropping support for Bitcoin in 2018, the fintech giant Stripe announced on Wednesday that crypto payments on its platform are back.
Read on to discover more about Stripe’s latest move and how it will affect businesses.
How Does Stripe’s ‘Pay With Crypto’ Work?
Stripe will begin its crypto payment journey with $USDC stablecoins on the Ethereum, Polygon, and Solana networks.
Through its ‘Pay with Crypto’ feature, users can make payments of up to $100K per month, and each payment is limited to $10K with a 1.5% transaction fee.
Stripe aims to simplify crypto transactions. It will automatically convert any payments made in $USDC into fiat before depositing it into a merchant’s Stripe account. With the ‘Pay with Crypto’ feature, users can integrate their stablecoin payments. They’ll then be redirected to connect their wallets and complete the payments.
Stripe’s U-Turn On Crypto Payments
Stripe crossed the $1T in transactions last year. As one of the largest payment service providers, it’s now valued at around $70B.
In 2014, Stripe first began supporting crypto payments with tests on Bitcoin. However, it dropped its support of $BTC in 2018 because of increased transaction confirmation times, high fees, and $BTC’s volatility.
The payments giant has now returned to the crypto fold, albeit in a more sedate fashion. The platform’s decision to start its journey with $USDC is likely because stablecoins are pegged to assets that are perceived to be more stable.
Yesterday’s announcement fulfilled Stripe’s April commitment to start accepting crypto payments.
Another reason for Stripe’s change of heart could be that in 2021, rival PayPal announced the launch of ‘Checkout With Crypto,’ allowing US customers to pay online without fees.
With the growth and convenience of crypto payments, both businesses and consumers will benefit from easier cross-border payments and better online security.
However, many factors, such as consumer preferences and regulatory developments, may affect the crypto payments landscape.
We’ll have to wait and see whether Stripe will stand its ground with its latest launch and how far it will venture into the crypto payments arena.
References
Click to expand and view sources
