Stripe is launching a crypto payments feature, with Twitter as the first customer

Illustrative image of two commemorative bitcoins with a green background.

Arthur Vidak Nurfota | Getty Images

Stripe will allow businesses to pay their users through cryptocurrencies, starting with Twitter, which shows how big financial firms treat digital assets.

The $ 95 billion online payment company said on Friday it would start offering merchants the ability to make payments to the crypto through the USDC stablecoin, produced by the crypto firm Circle. Stablecoins are tokens pegged to fiat currencies to maintain a stable price. In the case of the USDC, as the name implies, the cryptocurrency is backed by the US dollar.

Twitter will be the first company to integrate a new payment method. Starting Friday, the social networking platform – which has been the subject of much talk recently about a potential takeover by Tesla CEO Ilona Maska – will allow a number of creators to monetize their paid features Ticketed Spaces and Super Follows at USDC.

This is Stripe’s first significant push to crypto after giving up support for bitcoin four years ago. The startup from San Francisco stopped accepting payments via bitcoin in January 2018, citing the fame of the digital coin by volatile price fluctuations and lack of efficiency in making day-to-day transactions.

But since then, the company has moved to the crypt amid the hype surrounding “Web3,” a technology movement that requires a decentralized version of the Internet based on blockchain technology. Last year, Stripe formed a team dedicated to crypto and Web3. In November, Stripe co-founder John Collison hinted that the company could soon offer crypto support again.

“While the“ repository of value ”cryptocurrency aspect is usually given the most attention, we find the prospect of“ global open access financial rails ”at least as appealing,” said Karan Sharma, Stripe’s crypto division product manager. a blog post on Friday. “As a result, we are exploring ways to use cryptocurrency platforms to unlock wider access.”

The company’s cryptocurrency payout feature will run on the Polygon network, the so-called “Layer 2” solution, which sits on top of the Ethereum network to process transactions faster and at a lower cost. Bitcoin, ether and other cryptocurrencies have faced criticism for slow transaction times and high fees.

“We plan to add support for additional rails and payout currencies over time,” Sharma said.

Stripe – not the only company to open its platform for digital currencies – in fact, the company may be late for the party. Visa, Mastercard and PayPal and other major payment processors have announced their own steps in space. This was when digital currency prices were still rising.

More recently, several major cryptocurrencies have fallen sharply from record highs, and bitcoin, the world’s largest, has fallen more than 40% since its November peak of nearly $ 69,000. According to Coin Metrics, on Friday bitcoin traded at about $ 39,724, down about 6% over the past 24 hours.

Stripe is launching a crypto payments feature, with Twitter as the first customer

Source link Stripe is launching a crypto payments feature, with Twitter as the first customer

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