Stripe to Launch Stablecoin Payments

US-based fintech Stripe is set to introduce stablecoin payments as a checkout option, signalling a renewed commitment to the cryptocurrency space. The new functionality, expected to launch this year, will allow checkout customers to transact using USDC stablecoins, issued by Circle. Users will be able to toggle wallets between Solana, Ethereum, and Polygon networks.

John Collison, co-founder of Stripe, announced the news on X, formerly known as Twitter, saying that “transactions instantly settle on-chain and automatically convert to fiat.” The rollout is expected to go live this summer, with further details disclosed during the Stripe Sessions conference at the Moscone Centre in San Francisco.

This move marks a gradual but deliberate re-engagement by Stripe with digital currencies. The fintech first experimented with cryptocurrencies in 2014, trialling Bitcoin payments alongside automated clearing house (ACH) transactions. However, the initiative was halted in 2018 due to Bitcoin’s high volatility and slow transaction times.

Stripe revisited the technology four years later, introducing a new feature that allowed USDC payouts via its Connect platform. Despite this, the service was not extended to Stripe’s account-to-account payment functions. In 2023, the fintech further expanded its digital currency offerings with an embeddable fiat-to-crypto onramp, enabling Web3 companies to integrate a crypto-purchasing widget into their applications.

Stripe’s decision to adopt stablecoin payments, particularly after processing $1 trillion in total payments last year, indicates a promising shift toward cryptocurrency adoption despite recent setbacks in the industry. Notable examples include SoFi’s decision to end its cryptocurrency services in December and Oklahoma-based Vast Bank discontinuing its cryptocurrency mobile banking app in February.

With Stripe’s stablecoin payment feature on the horizon, the fintech appears to be cautiously embracing the potential of cryptocurrencies, potentially setting the stage for broader adoption and innovation in digital finance.