The payments giant, Stripe, is reviving its crypto ambitions by announcing payments with a stablecoin called USD Coin. On October 9, businesses can start accepting USDC through Ethereum, Solana, and Polygon networks. Earlier this year, Stripe froze Bitcoin transactions way back in 2018 due to inefficiencies like high fees and slow processing times. Usage of the feature is fast, as users from over 70 countries transactions in less than 24 hours, and the trend indicates the rapidly growing demand for effective global payment solutions.
Fun fact: In the first 24 hours, customers from 70+ countries have paid with stablecoins through @Stripe
Today, we just expanded access, so if you’re a US merchant on Stripe, check your Stripe dashboard and turn on “Pay with Crypto”! 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, making use of the strengths of different blockchain ecosystems:
- Ethereum: The go-to for smart contracts and decentralized applications, Ethereum offers a mature infrastructure. While gas fees can be steep, its security and wide adoption are unmatched.
- Solana: Ideal for fast-paced, high-volume transactions, Solana’s low costs and high speed make it a practical choice for everyday use cases.
- Polygon: As a layer-2 solution on Ethereum, Polygon merges Ethereum’s security with enhanced scalability and reduced fees, optimizing transaction efficiency.
Stripe streamlines the process for merchants by converting USDC payments directly into USD. This automatic conversion minimizes exposure to crypto volatility and eliminates the need for businesses to navigate the complexities of holding digital assets. Stripe charges a 1.5% transaction fee, a competitive rate that challenges the conventional costs associated with cross-border and credit card payments
As Stripe continues refining its approach, this move positions the company to lead the way in merging traditional and digital finance for global markets.
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