Stripe Brings Back Crypto Payments: How It Works
The reintegration will make it easier for businesses and consumers to make crypto transactions.
- Stripe has brought back crypto.
- Starting with stablecoin integration.
- Users can make transactions in a few simple steps.
Stripe Brings Back Crypto
Stripe, one of the pioneers in digital payments, has brought back crypto payments after years of hiatus. In 2014, Stripe introduced Bitcoin to its payments system, aiming to simplify digital transactions. However, the volatility of cryptocurrencies forced the company to suspend the feature. Now, nearly a decade later, Stripe is back with a new, more stable solution.
Stripe Launches Crypto Payments with Stablecoin USDC
Stripe has officially announced the reintegration of its crypto payments service. Stripe's head of product Jeff Weinstein announced the return of the service on October 10. Instead of relying on highly volatile cryptocurrencies, Stripe opted to integrate the stablecoin USDC, making it easy for businesses and buyers to use across three blockchain networks: Ethereum, Solana, and Polygon. More than 150 countries are supported, and features like payment integrations and payment intents are also available.
How Crypto Payments Work on Stripe
Businesses need to enable crypto payments in their dashboard. Once enabled, the payment process will proceed as follows:
-Start the payment process: The buyer starts the transaction as usual, similar to other payment methods.
-Choose Cryptocurrency: At the checkout page, users can select USDC as their payment method, using one of three blockchain networks: Ethereum, Solana, or Polygon.
-Choose Wallet: Users will select a wallet that supports the transaction, such as Coinbase Wallet, MetaMask, or Phantom.
-Confirm Payment Details: Customers review the payment amount, network fees, and selected wallet before confirming.
-Authorize Payment: After review, users approve the transaction from their wallet, which may require additional authentication.
-Process Transaction: Transactions are processed on the blockchain within seconds of authorization.
-Confirm Payment: Businesses and customers both receive confirmation of successful transactions, which can be checked on the Stripe dashboard or cryptocurrency wallet.
Payments will be converted into fiat balances for businesses without having to worry about manual conversions.
Cons
Stripe charges a 1.5% fee for each crypto transaction for businesses. Additionally, only supporting USDC may not be suitable for customers who want to use other cryptocurrencies.
Why it's important
Stripe's reintegration of crypto payments will help promote global adoption, bringing crypto closer to the modern financial ecosystem.