Stripe, a payment provider, is now accepting crypto payments in USD Coin (USDC), and Twitter creators will be among the first to use the service.
Stripe’s USDC Payments will be be tested by Twitter
According to a statement made today Stripe will allow payments in the USDC stablecoin on the Polygon blockchain. These payments will be available through Stripe Connect, the company’s technology for integrating payments into online marketplaces, with Twitter as the first partner. Stripe says companies and platforms using Stripe Connect will be able to pay in USDC, without having to buy or hold the stablecoin itself.
Despite the fact that the company has decided to work with cryptocurrency, content creators and freelancers must complete Know Your Customer integration checks first. Then they will be able to manage their account information, track earnings in real time, and view their payouts in their cryptocurrency wallets. By the end of the year, Twitter and Stripe hope to have expanded the program to more than 120 countries.
— Band (@band) April 22, 2022
Stripe’s crypto journey
Stripe was the first major payment company to accept bitcoin payments in 2014, but it discontinued cryptocurrency support in 2018. As the market matured, it decided to return to cryptocurrencies in 2021, and in 2022 it began rolling out its first partnerships, such as crypto exchange giant FTX, which announced a partnership with Stripe to improve its identity compliance features and onboarding workflows fiat.
Stripe’s re-entry into the crypto space would be a threat to existing crypto payment providers, bringing intense competition, but the big winner from the partnership appears to be USDC as it adds a major use case to its stablecoin, which has also seen significant competition from new stablecoins such as $UST, which are trying to take its market share.