In an era of digital transactions, Stripe has introduced an innovative feature called “Pay with Crypto,” enabling businesses to accept stablecoin payments that are settled as fiat currency in their Stripe accounts. This development has the potential to streamline the acceptance of cryptocurrency, particularly for US-based businesses, although it is currently available to a limited audience.
Understanding Pay with Crypto
With Pay with Crypto, merchants can seamlessly accept payments in USDC across popular blockchain networks such as Ethereum, Solana, and Polygon. This integration eliminates the need for businesses to manage the complexities of holding cryptocurrency or converting it to fiat currency themselves. Stripe charges a transaction fee of 1.5% on the amount processed.
How It Works
The integration can be implemented in various ways, including through Stripe’s Payment Element, Checkout, or directly via the Payment Intents API. When a customer opts to pay with crypto during checkout, they are redirected to a secure page hosted by crypto.link.com. Here, they can:
- Confirm the payment amount.
- Connect their crypto wallet.
- Authorize the transaction by signing off on the transfer of USDC from their wallet.
Upon confirmation from Stripe, customers receive a notification that their payment was successful, and merchants can view the updated balance in their Stripe accounts.
Key Features
The following features highlight the capabilities of Pay with Crypto:
- Availability: Currently limited to businesses in the United States.
- Integration: Can be added through Stripe’s Payment Element, Checkout, or Payment Intents API.
- Liability: Businesses integrating this feature face zero dispute liability.
- Recurring Payments: Supported through the invoice collection method for subscriptions.
- Transaction Limits: Customers can transact up to $10,000 per transaction and a maximum of $100,000 per month.
Onboarding Process
To enable Pay with Crypto, businesses must follow a straightforward onboarding process:
- Create and activate a Stripe account, ensuring eligibility for transaction processing.
- Navigate to the payment methods settings and request access to the Crypto payment option.
- Provide necessary business information and agree to terms.
- Await approval from Stripe, after which the Crypto payment method will be activated in the Dashboard.
Considerations for Businesses
Before integrating Pay with Crypto, businesses should be aware of the following:
- Refunds: Refunds for crypto payments are conducted in stablecoins, credited back to the customer’s original wallet.
- Settlement Currency: Currently, only USD settlements are supported.
- Billing: Stripe Billing can be utilized to create crypto-supported invoices and subscriptions, limited to the invoice collection method.
Conclusion
As the digital payment landscape continues to evolve, features like Pay with Crypto offer businesses a unique opportunity to expand their payment options while simplifying the complexities associated with cryptocurrency transactions.
