Online payment processor Stripe has continued its expansion into cryptocurrency, announcing via Twitter the launch of a suite of products designed to support crypto payments on its platform.
The new offerings cover a wide range of use cases. For NFT marketplaces, Stripe’s Identity option enables verification of identity documents from 33 countries to help screen buyers and sellers. For non-NFT exchanges, users in more than 180 countries can deposit funds using a variety of local payment methods, while Stripe’s Connect product supports fiat payouts to over 45 countries. The company also offers streamlined APIs to improve the wallet experience — a common source of frustration among users due to the cumbersome nature of many existing solutions.
This move is the latest in a series of steps by major payment companies to embrace crypto, but Stripe’s relationship with cryptocurrencies has not always been straightforward. The Irish-American company stopped supporting Bitcoin in 2018, a decision that was viewed as a setback for the broader industry. Stripe originally enabled crypto payments back in 2014.
At the time, Stripe explained that “over the past two years, as block size limits were reached, Bitcoin evolved to be more useful as a store of value than as a medium of exchange… this has made Bitcoin less useful for payments,” in a blog post announcing the end of support.
Of course, the crypto landscape today looks very different from 2018. In an updated introduction on Stripe’s site, the company notes: “From new developments in blockchain infrastructure to growing interest from major financial institutions, crypto is becoming mainstream.” The continued growth of the Lightning Network stands out as particularly relevant for payments, offering off-chain solutions that address many of the scaling challenges faced by the Bitcoin blockchain.
“Stripe now supports crypto businesses: exchanges, onramps, wallets and NFT marketplaces. Not just payouts, but also KYC and identity verification, fraud prevention and much more,” tweeted co-founder John Collison.
One of the most important effects of Stripe’s move could be on crypto-related fraud. Stripe’s announcement highlights “fraud prevention and authorization optimization,” measures that should help deter scams as the emerging industry grows beyond its early internet niche.
Stripe also said it is partnering with crypto exchange FTX to streamline identity compliance and fiat onboarding products.
Overall, the announcement is another signal that Bitcoin and cryptocurrency have entered the mainstream after a surge in public attention during the pandemic years. Crypto is now recognized as a significant asset class, and product launches like Stripe’s further validate its growing legitimacy.