- Payment processor Stripe will resume support for crypto assets.
- Stripe’s re-entry into the crypto industry begins with stablecoin integration.
- Stripe will support USDC upon the reinstatement of its crypto feature.
As a revolutionary tool in finance, one of the earliest adoptions of the crypto asset class was its integration as a global payment solution. One pioneer in this space was payment giant Stripe, which became one of the first global payments providers to embrace Bitcoin in 2014 to simplify digital payments. The payment provider’s run was, however, short-lived, as it halted support for the asset four years later, citing concerns about its volatile nature.
Six years down the line, the industry has recorded immense growth, gaining recognition as a viable exchange and payment option across the globe. Recognizing its position, Stripe has announced plans to recommence support for crypto-backed payments.
Stripe Brings Crypto Back with USDC
Speaking at the Stripe Sessions 2024 event on Thursday, April 25, Stripe co-founder John Collison emphasized that while it disabled Bitcoin for being an unstable payment option at its time of offering, the asset class has witnessed significant technological improvements which position it as a suitable store of value.
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“With transaction speeds increasing and costs coming down, we're seeing crypto finally making sense as a means of exchange,” he stated.
However, Stripe’s history with volatility has turned its attention from BTC towards the more stable sector of the industry. At the heart of its reintegration of crypto is the second-largest stablecoin USD Coin (USDC), which will offer users a 1:1 peg to the U.S. dollar to ensure stability.
Emphasizing the reliability of the fiat-pegged asset, Collision asserted the suitability of stablecoins for payments due to their progressive momentum even amid market volatility.
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“Stable coins are becoming, well, stable. They're regulated, they're backed by real assets, they're being used a lot, look at this chart of the total value being transacted by stable coins. If we're in a crypto winter, post 2021 nobody told the stable coins,” remarked Collinson.
Upon integration, Stripe will support USDC transactions on Ethereum, Solana, and Polygon, and is expected to expand across the additional chains supported by the native stablecoin to enhance accessibility and ease of use.
How will it Work?
Demonstrating how the Stripe crypto integration will work at the event, Collison shared a step-by-step payment process of how users can facilitate a transaction with the crypto option.
- Initiate Payment: When making a payment through Stripe, you’ll go through the usual process of initiating the payment as you would with any other method.
- Select Crypto Payment: During the payment process, the interface will present an option to pay using cryptocurrency. This option will likely be visible alongside other payment methods like credit cards.
- Choose Crypto Wallet: Upon selecting the crypto payment option, you’ll choose which cryptocurrency wallet you want to use for the transaction. According to the demonstration, options include Coinbase Wallet, MetaMask, Phantom, and others.
- Confirm Payment: Once you’ve selected your preferred wallet, you’ll proceed to confirm the payment details. This involves confirming the amount, your crypto of choice, and associated fees.
- Authorization: Depending on the wallet you’re using, you may need to authorize the transaction within your wallet app. This could involve confirming the transaction details and providing any necessary authentication.
- Transaction Processing: The transaction will be processed upon authorization. Stripe co-founder Collison particularly emphasized the speed at which transactions are processed, asserting its minimal waiting time.
- Confirmation: Once the transaction is processed, you’ll receive confirmation of the payment, which may be displayed within the Stripe checkout interface, and in the crypto wallet application.
- Verification: To ensure the transaction is complete, you can verify the transaction details within your crypto wallet app or by checking your payment history in the Stripe dashboard.
While Stripe did not unveil a specific timeline for launch, it stated the feature will go live in the upcoming summer season.
On the Flipside
- The question of whether Stripe will stay the course this time with its latest crypto venture has arisen across the community.
- Since the beginning of the year, USDC has recorded remarkable growth, with its market capitalization surging by an impressive 32% from $25 million to $33 million.
- While Stripe halted its Bitcoin support due to extreme volatility, the token giant’s growth over the years may prompt a reconsideration.
Why This Matters
Stripe’s decision to re-enter the cryptocurrency market underscores its recognition of the value of the asset class, echoing the progressive trajectory of the industry over the years. A successful integration of USDC on Stripe promises increased adoption, not only for the stablecoin, but the broader crypto market.
Read here to discover more about Stripe’s previous trials at crypto:
Stripe Partners with OpenNode to Enable Merchants to Convert Payments Into Bitcoin
To find out how the native SUI token has fared this week, read here:
Sui Suffers 30% Decline in TVL as Token Drags Below $1.5
