Stripe has finally introduced its support for stablecoin transactions, and on its first day of operations, the payments company disclosed that it facilitated transactions in 70 countries.
The company did not reveal the specific number of stablecoin transactions or the total amounts transferred. Stripe now offers support for Circle’s USDC on the Ethereum, Solana, and Polygon blockchains, as well as Pax Dollar on Ethereum and Solana. Any stablecoin payment processed through Stripe’s platform will be converted to U.S. dollars upon receipt and stored in a user’s Stripe wallet, with a 1.5% transaction fee deducted.
Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research, noted, “The integration of multiple blockchains is crucial here. Polygon and especially Solana offer faster and cheaper transactions compared to Ethereum-based products that do not utilize a Layer 2 solution. While the 1.5% fee may seem steep, with more payment providers entering the stablecoin space, Stripe might become more competitive.”
Centering Around Stablecoins
Stripe has been a proponent of crypto adoption ever since it added bitcoin as a payment option ten years ago. However, the company later reversed its decision due to high costs and processing difficulties associated with bitcoin transactions.
Earlier this year, Stripe announced a partnership with Coinbase to reintroduce crypto to its platform, focusing this time on stablecoins, particularly USDC in its digital assets strategy.
Uniquely Suited
Stripe’s clientele, predominantly consisting of businesses in the e-commerce sector, are constantly seeking ways to expand their customer base at lower costs. The company believes that stablecoins are uniquely suited to meet this demand.
Hugentobler emphasized, “This development further validates our belief at Javelin that stablecoin usage will increase in the coming months and years, especially for cross-border payments like remittances. The fact that participants from 70 countries utilized this new payment solution is significant.”
He added, “The U.S. economy is relatively stable, but many other nations face higher rates of inflation or debasement of fiat currencies, limited access to stable currencies like the dollar, or restricted access to viable savings options. These challenges underscore the importance of a dollar-pegged stablecoin such as USDC, offering a quicker and more cost-effective payment solution.”
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
