San Francisco, April 26, 2024: Payment service Stripe is re-entering the world of cryptocurrencies after a four-year hiatus, having paused support for Bitcoin in 2018. This time, however, the company is focusing on stablecoins, aiming to offer a more stable and user-friendly payment option.
Stablecoins over Bitcoin
Stripe co-founder and president, John Collison, explained this decision at the company’s developer conference in San Francisco. According to Collison, stablecoins like USDC have proven to be a more reliable and stable payment method compared to Bitcoin, whose price has historically been subject to significant volatility.
Advantages of Stablecoins
Collison emphasized the stability of USDC, which is pegged to the US dollar, making it a store of value and allowing merchants to protect themselves from inflation. Compared to the Turkish lira, which is experiencing volatility, stablecoins offer a stable alternative for merchants in countries with unstable currencies.
Easy Payments with USDC
Stripe will offer payment services using USDC on three blockchains: Solana, Ethereum, and Polygon. This will allow customers to pay for goods and services using stablecoins directly on Stripe’s platforms.
Stripe’s History in Crypto
Stripe was among the first major payment providers to start accepting Bitcoin in 2014. However, in 2018, the company paused support for Bitcoin due to its technical shortcomings and volatility. Despite this move, Stripe remained active in the crypto industry, investing in projects like Libra (now Diem) and building its own crypto team.
Stripe’s return to the crypto world with stablecoins signals a growing interest in this technology from established players in the payments space. Stablecoins offer the potential for more stable and efficient payments, opening up new possibilities for online commerce and cross-border transactions.
Future of Crypto at Stripe:
While Stripe is currently focusing on stablecoins, Collison did not rule out integrating other cryptocurrencies in the future. Further development will depend on the evolution of technology and regulation in the crypto space.
Additional Statistics on Stripe:
Payment Volume Processed:
- In 2022, Stripe processed over $150 billion in payments.
- The company has been experiencing growing transaction volume each year.
Number of Users:
- Stripe has over 2 million active merchants in 120 countries around the world.
- Its clients include small businesses, startups, and large corporations like Amazon, Uber, and Shopify.
Geographic Expansion:
- Stripe is constantly expanding its presence into new markets.
- In 2023, the company entered markets in Latin America and the Middle East.
Products and Services:
- Stripe offers a wide range of products and services for online payments, including:
- Online payment gateways
- Recurring payments
- Invoicing
- Payments in multiple currencies
- Support for various payment methods (cards, bank transfers, Apple Pay, Google Pay, etc.)
Investments:
- Stripe has raised significant investments from venture capital firms over the years.
- The company’s total valuation is estimated to be over $95 billion.
Awards:
- Stripe has received awards for innovation in payment technology and for supporting the growth of small businesses.
Controversies:
- Stripe has faced criticism for its business practices and for cooperating with authoritarian regimes.
- The company has also been the target of hacking attacks.
Sources: https://stripe.com/
