Stripe Reintroduces Crypto Payments for U.S. Merchants via Solana
Stripe, one of the world’s largest payment providers, has relaunched crypto payments for U.S. merchants, signaling its re-entry into the blockchain space after halting the service in 2018.
The return to crypto payments reflects Stripe’s efforts to bridge the gap between Web2 and Web3, enhancing user experiences by supporting stablecoin transactions on blockchain networks.
In April 2024, Stripe’s product lead Jeff Weinstein revealed that crypto payments would resume, featuring a live demo where users paid with $USDC using Solana wallets. Now, six months later, the service is live for U.S. merchants, following its launch in the European Union in July 2024.
Stripe currently supports three blockchain networks—Solana, Ethereum, and Polygon—automatically converting stablecoin payments into USD. This allows merchants to receive U.S. dollars from customers in over 150 countries. Stripe initially launched crypto payments with Bitcoin in 2014, but high fees and slow processing times led to the service being discontinued in 2018.
Stablecoin Payments on the Rise
The reintroduction of stablecoin payments is part of a broader trend of traditional financial institutions exploring blockchain solutions. Stripe’s rival, PayPal, has also entered the stablecoin space with its $PYUSD, which has gained significant traction on the Solana network.
Jeremy Allaire, CEO of Circle, praised Stripe’s move to support $USDC, as it opens up the stablecoin to a wider audience, allowing it to be used in ecommerce transactions across the U.S. and beyond.
Solana as the Preferred Network
Among the blockchains Stripe supports, Solana stands out due to its high transaction throughput and low fees. These factors make it particularly well-suited for large-scale payments, addressing the issues Stripe previously faced with Bitcoin payments, which were plagued by high fees and long confirmation times.
Solana’s efficiency positions it as a strong foundation for Stripe’s new crypto payment program, offering an improved experience for merchants and customers alike.
Featured image from: crypto.ro