Focusing on stablecoin USDC, Stripe enables seamless global transactions for U.S. businesses.
Stripe, a major player in the financial technology sector, has made a significant move by reintroducing cryptocurrency payments. This time, they are focusing on USD Coin to facilitate transactions for U.S. businesses. Here's what you need to know about this development.
USDC is a type of cryptocurrency known as a stablecoin, which is pegged to the U.S. dollar. This means its value remains stable, unlike other cryptocurrencies that can be highly volatile. Stripe's decision to support USDC allows businesses to accept payments in a digital currency that doesn't fluctuate wildly in value, addressing one of the main concerns with crypto payments.
Stripe's new feature enables U.S. companies to accept USDC payments through major blockchain networks like Ethereum, Solana, and Polygon. This means businesses can receive payments from over 150 countries, with transactions settled in U.S. dollars. The integration is seamless, using Stripe's existing platforms such as checkout and payment intents, making it easy for businesses to adopt.
Stripe had previously discontinued Bitcoin support in 2018 due to low demand and volatility issues. However, the landscape has changed, with stablecoins like USDC offering a more reliable option for digital transactions. By reintroducing crypto payments, Stripe is aligning itself with competitors like PayPal, who have also embraced digital currencies.
For businesses, this move by Stripe presents an opportunity to tap into a global market with minimal currency conversion issues. The automatic conversion of USDC to fiat currency simplifies the process, reducing the complexity traditionally associated with crypto payments. However, businesses should be aware of the $10,000 transaction limit and a 1.5% fee per transaction.
