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“Crypto’s Back”, Stripe to Support On-Chain USDC Payments

Payments | April 26, 2024

John Collision Stripe Future of Payments San Francisco 04 24 - "Crypto's Back", Stripe to Support On-Chain USDC Payments

Image: John Collision @Stripe Sessions - Future of Payments, San Francisco (04/24)

Stripe to Support On-Chain Global Crypto Payments

2024 - At Stripe Sessions - The Future of Payments conference in San Francisco, the Co-founder and President of Stripe, John Collision, announced its return to cryptocurrency transactions after a multi-year hiatus, this time supporting a single USDC stablecoin initially on Polygon, Solana and Ethereum networks. Stripe's history with cryptocurrencies showcases a journey of experimentation, adaptation, and strategic decision-making.

Here's a timeline of their key activities in the crypto payments space:

  • 2014 - Stripe was one of the early adopters among payment processors to support Bitcoin payments. This move was aimed at enhancing the flexibility of online payments by integrating a burgeoning digital currency​.
  • 2018 - After four years of supporting Bitcoin, Stripe decided to end its Bitcoin payment support. The company cited several reasons for this decision, including longer transaction times and increased fees that made Bitcoin less effective for small, everyday transactions. Instead, Stripe shifted focus to look at other cryptocurrencies that could potentially offer more utility as everyday payment methods​.

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  • 2022 - Fast forward to 2022, Stripe introduced the ability for businesses to send cryptocurrency payouts globally through its Stripe Connect platform. This service initially allowed payouts in USD Coin (USDC), a stablecoin pegged to the US dollar, leveraging the crypto infrastructure without the volatility typically associated with traditional cryptocurrencies​.
  • 2024 - Renewed Crypto Payments Initiative: Just this week, Stripe announced that it would start accepting USDC stablecoin payments, marking a significant return to crypto payments expected to start this summer.

Stablecoins are gaining traction as a means of payment because they combine the stability of traditional fiat currencies with the efficiency of digital transactions.

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The appeal of stablecoins lies in their ability to maintain a stable value, usually pegged to a fiat currency like the US dollar, which makes them less volatile compared to traditional cryptocurrencies like Bitcoin. This stability is achieved through backing by assets such as cash or government bonds, ensuring that each stablecoin can be redeemed at a consistent value.

Why This Matters

Stripe's support for stablecoin payments will help the adoption of digital currencies into the mainstream.  It also shows how Stripe is facilitating a deeper engagement with the crypto economy. Further, by choosing USDC, a stablecoin known for its stability and linkage to the US dollar, Stripe aims to build trust and reduce the volatility often associated with cryptocurrencies which could set a standard for other payment companies.


NCFA Jan 2018 resize - "Crypto's Back", Stripe to Support On-Chain USDC PaymentsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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