Payments giant Stripe is reviving its cryptocurrency ambitions by announcing payments with a stablecoin called USD Coin. On October 9th, businesses will be able to start accepting USDC through the Ethereum, Solana, and Polygon networks. Earlier this year, Stripe froze Bitcoin transactions dating back to 2018, citing inefficiencies such as high fees and slow processing times. Use of this feature is rapid, with users from over 70 countries making transactions within 24 hours, and this trend shows that the demand for effective global payment solutions is rapidly growing.
Interesting fact: In the first 24 hours, customers from over 70 countries… @stripe
If you’re a U.S. seller on Stripe, check out your Stripe dashboard and turn on “Pay with Crypto” as we just expanded access today. pic.twitter.com/XZKOertvmj
— Jen (@BackseatVC) October 9, 2024
Blockchain integration and payment processing
Stripe’s reimagined crypto strategy is built on a robust multi-chain approach that leverages the strengths of various blockchain ecosystems.
Ethereum: The go-to for smart contracts and decentralized applications, Ethereum offers a mature infrastructure. Gas prices can be high, but its safety and widespread availability are unparalleled. Solana: Ideal for fast-paced, high-volume transactions, Solana’s low cost and high speed make it a practical choice for everyday use cases. Polygon: As a Layer 2 solution for Ethereum, Polygon combines Ethereum’s security with enhanced scalability and reduced fees to optimize transaction efficiency.
Stripe streamlines the process for sellers by converting USDC payments directly to USD. This automatic conversion minimizes the impact on cryptocurrency volatility and eliminates the need for businesses to navigate the complexities of holding digital assets. Stripe charges a 1.5% transaction fee. This is a competitive rate that counters traditional costs associated with cross-border payments and credit card payments.
Stripe continues to refine its approach, and this move positions the company to lead the way in blending traditional and digital finance for global markets.
