Last week Stripe started to accept crypto payments, after a six year gap. Today Paxos revealed it is Stripe’s infrastructure partner, enabling the payments firm to accept stablecoin payments.
Paxos has been a stablecoin issuer for many years with its own USDP coin, plus it is also the issuer of PayPal’s PYUSD and was the issuer of Binance USD.
Hence, with Stripe and PayPal, Paxos has two of the largest online payment acceptance firms as clients.
Stripe told Bloomberg that ecommerce customers in 70 countries used the solution on the first day. So far Stripe is only allowing U.S. merchants to sign up, although customers can be based in any country. Merchants pay a fee of 1.5% and at the moment Stripe will only pay out US dollars.
The stablecoins supported by the Paxos platform are USDP, PYUSD and USDC on Ethereum and Solana, with USDC additionally on Polygon. Stripe does not accept PYUSD, which rather makes sense given PayPal is a competitor.
The Paxos stablecoin solution also supports stablecoin payouts.
“We’re always looking for ways to make it easier and cheaper for businesses to accept payments from their customers worldwide,” said John Egan, Head of Crypto at Stripe. “Partnering with Paxos, we’re excited to enable stablecoin payments for our users with our Pay with Crypto product.”
To date stablecoins have mainly been used for crypto and by emerging markets residents who want to hold dollars. Gradually more infrastructure is emerging to broaden the use of stablecoins for both consumer payments and business payments such as Bridge.
