Paxos, the blockchain company behind Pax Dollar (USDP), is expanding the adoption of stablecoins in the payments industry with the launch of a new enterprise-grade stablecoin payments platform.
The platform targets payment service providers (PSPs) and fintech companies, offering them the ability to integrate stablecoin payments into their systems for faster, lower-cost global transactions.
Paxos announced that payment processing giant Stripe will be the first PSP to integrate Paxos’ infrastructure. Stripe’s Pay with Crypto product, which allows businesses to accept payments in stablecoins, is powered by Paxos technology and allows these payments to be settled in fiat currencies such as the US dollar.
“We are always looking for ways for businesses to easily and cheaply accept payments from customers around the world. We are proud to partner with Paxos to enable our users to pay with stablecoins with our Pay with Crypto product. We’re excited about it,” said John Egan, Head of Crypto at Stripe.
The new Paxos platform provides an API infrastructure that enables payments in stablecoins or fiat currencies. The platform supports conversion between the US dollar and three stablecoins: Pax Dollar (USDP), PayPal USD (PYUSD), and Circle’s USD Coin (USDC). It will be available in the US at launch, but we plan to expand to additional currencies and regions over time.
To use the platform, customers must set up a wallet with Paxos, and merchants or PSPs can choose to receive stablecoins directly or convert them to fiat. The platform also supports on-chain transfers of PYUSD and USDP via Solana and Ethereum networks, while USDC is supported via Ethereum, Solana, and Polygon.
Stripe and Paxos partnership
Merchants can also issue refunds in the same stablecoin used for the initial payment.
Stripe already supports payments from over 70 countries, and incorporating stablecoin payments will allow businesses to accept payments from anywhere in the world.
“This is truly an enterprise-grade payments infrastructure, with Paxos implementing a regulation-first approach to necessary payment functionality across onboarding, custody, and remittances,” said a Paxos representative. . Paxos also plans to continue adding more assets and blockchain networks to the platform based on customer demand.
The stablecoin market is experiencing rapid growth, with the market total exceeding $170 billion in September 2024. Large players such as Tether (USDT), Circle (USDC), and PayPal (PYUSD) continue to dominate the space.
