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Stripe re-enters the crypto world, allowing US businesses to accept payments in USDC

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Stripe re-enters the crypto world, allowing US businesses to accept payments in USDC

After disabling Bitcoin support for six years and completely suspending cryptocurrency payment services, payment processing giant Stripe is reintroducing crypto payments for U.S. businesses. Merchants will now be able to receive and make payments in the stablecoin USDC via Ethereum, Solana, and Polygon.

Stripe's History with Crypto

Stripe first entered the Bitcoin ecosystem in 2014 but ceased support in January 2018, as Bitcoin plummeted from $19,650 in December 2017 to $3,401 by the end of 2018.

At that time, product manager Tom Karlo cited Bitcoin's high volatility leading to transaction errors, viewing it more as an asset than a medium of exchange, and criticized the lengthy transaction times and rising fees.

In 2022, Stripe collaborated with FTX to indirectly support cryptocurrencies and in April of that year, offered USDC transfer services to specific Twitter X creators.

Initially Supporting USDC and USDP Only

Stripe's Pay with Crypto feature allows customers to transact using stablecoins, settling in fiat currency within their Stripe balance. Customers can receive USDC payments on Ethereum, Solana, and Polygon without needing to hold or convert cryptocurrencies themselves. Stripe charges a 1.5% transaction fee.

U.S.-based businesses can implement Stripe's Payment Element, Checkout, or Payment Intents API to accept payments in USDC on Ethereum, Solana, and Polygon, as well as USDP on Ethereum and Solana. Transaction limits are $10,000 per transaction and $100,000 per month.

In June, Stripe partnered with U.S. crypto exchange Coinbase, integrating Coinbase's Layer 2 network Base into its crypto payment products. Coinbase will add Stripe as a way for customers to use credit cards or Apple Pay within the Coinbase wallet to purchase cryptocurrencies. Additionally, Coinbase customers can simplify the conversion from fiat to crypto using USDC through the Stripe and Base network link, facilitating fund transfers to over 150 countries.