Stripe, a major global payments provider, has made a significant move into the crypto space by introducing USD Coin (USDC) stablecoin payment options, marking a major milestone in the adoption of cryptocurrencies as a viable payment method. On Oct. 9, the company launched its stablecoin payment feature, and within just 24 hours, users from 70 countries began making transactions, signaling strong global demand for alternative payment solutions.
A Milestone for Crypto Adoption
Stripe’s move to integrate USDC payments is a notable step in the growing acceptance of digital currencies. While the company had previously ventured into the crypto space in 2014 by accepting Bitcoin (BTC) payments, it abandoned the initiative in 2018 due to concerns over slow transaction confirmation times and high fees. Now, with the rise of stablecoins like USDC, Stripe is giving crypto payments another chance, particularly as stablecoins are seen as a more efficient alternative to volatile cryptocurrencies like Bitcoin.
Strong Global Demand
After Stripe enabled merchants to accept USDC payments, the new option quickly gained traction. According to a Bloomberg report, over 70 countries saw usage of the feature on its first day of launch. Jeff Weinstein, product lead at Stripe, emphasized that the move reflects Stripe’s commitment to providing what internet businesses need: more global reach at a lower cost. Weinstein added, “Stablecoins, while still early, show some sign that they can help achieve that.”
The Return of Crypto Payments at Stripe
The introduction of USDC payments is the result of years of planning by Stripe. In 2021, after a three-year hiatus from crypto payments, Stripe hired a dedicated blockchain team to focus on everything from web/mobile UIs to backend payments and identity systems. This team worked on revamping the company’s approach to crypto, leading to the integration of stablecoins and crypto payments into Stripe’s ecosystem.
Stripe co-founder John Collison further emphasized the company’s belief in the potential of crypto payments, saying, “Crypto is finally making sense as a means of exchange.” The announcement of stablecoin payments indicates that Stripe sees this technology as a growing part of its strategy for the future.
USDC Integration and Blockchain Support
Stripe supports USDC on several major blockchain networks, including Ethereum, Solana, and Polygon, as well as Pax Dollar (USDP) on Ethereum and Solana. All stablecoin payments are converted into US dollars before being stored in Stripe wallets. The company charges a 1.5% fee on each transaction in USD.
Strategic Partnership with Coinbase
As part of its renewed focus on crypto payments, Stripe also partnered with Coinbase in June 2023. This collaboration brought fiat-to-crypto on-ramps and off-ramps to both Stripe and Coinbase customers. The partnership also saw Stripe integrate Base—Coinbase’s Layer 2 solution—into its crypto product suite, while Coinbase integrated Stripe’s fiat-to-crypto on-ramp into its Coinbase Wallet.
Looking Ahead
Stripe’s re-entry into crypto payments with USDC could serve as a catalyst for further mainstream adoption of cryptocurrencies, especially stablecoins. The company’s ability to scale its payments infrastructure globally positions it as a key player in the intersection of traditional payments and blockchain technology.
This launch signals that stablecoins—which are pegged to traditional fiat currencies—are increasingly seen as practical alternatives to volatile digital assets like Bitcoin, especially for businesses seeking more stable and efficient payment systems.
