The world of crypto payments has received a breath of fresh air again after a surprising announcement from giant fintech company Stripe. In a keynote entitled “The Future of Payments,” Stripe President and Co-Founder John Collison announced that they would re-embrace crypto payments after previously stopping support for this mechanism in 2018.
The decision to return to supporting crypto payments was greeted with great enthusiasm from industry observers. Stripe, which has now handled more than $1 trillion in payment volume, is considered a key player that can drive the adoption of digital assets as a primary means of payment.
“Crypto is back,” wrote Collison in a tweet on Twitter on April 26, 2024, marking the revival of crypto payments, which had slumped some time ago.
In his remarks, he added, “This time, Stripe promises to deliver a ‘much better experience’ by implementing a number of improvements to address long-standing issues.”
Old Crypto Payment Problem Resolved
While previously Stripe stopped supporting crypto for reasons such as long transaction confirmation times, high failure rates, and expensive transaction fees, now they believe that these obstacles can be overcome.
Collison said, “With transaction speeds increasing and costs falling, we see crypto finally making sense as a means of payment.”
Stripe’s new strategy will focus on payments using stablecoins, which offer the same stability of value as fiat currencies but with the advantage of faster and more efficient transactions on the blockchain. This summer, Stripe will begin supporting global payments using stablecoins, with transactions settling instantly on the blockchain and automatically converted to fiat.
Capitalize on Crypto Consumer Interest
Stripe’s move is considered smart because it can attract the interest of crypto users who have had difficulty using their digital asset holdings in payment transactions. That way, merchants and businesses will also be more encouraged to adopt crypto payment options.
“Lack of familiarity often creates a lack of comfort, which ultimately leads to minimal adoption,” said Ajay Rajani, Vice President of Expansion and Crypto at Tala, responding to the current stalemate in crypto adoption.
A number of crypto payment advantages, such as faster transaction settlement and potential cost savings of up to 70%, will also be increasingly utilized with the return of big players such as Stripe.
Stripe claims it will integrate crypto payment options directly into the checkout flow to provide a seamless experience for customers. This optimization is important, considering that a bad checkout experience is often the cause of customers giving up their intention to buy.
Conclusion
Stripe’s move to re-embrace crypto asset payments after abandoning them for 6 years could be a breath of fresh air for the adoption of digital assets as a mainstream payment method.
By combining crypto payment advantages such as speed and cost efficiency and addressing long-standing problems, Stripe has the potential to attract the interest of more consumers and merchants.
Focusing on stablecoins is a smart strategy to avoid the risk of volatility that often haunts crypto. Direct integration into checkout is also expected to provide a seamless experience. But in any case, Stripe must consistently demonstrate its concrete advantages to truly change the public’s perception of crypto payments.
All eyes will be on further developments from Stripe’s move. If successful, this has the potential to push the adoption of crypto as a means of payment into a new, more massive stage. momentum that many parties have been waiting for after a long time when crypto was considered not yet feasible as a payment mechanism.
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*Disclaimer
This content aims to enrich the reader’s information. Always do your own research and consider carefully before investing. Use funds that are not too vital for your needs before getting involved in investing. All bitcoin buying and selling activities and other crypto asset investments are the responsibility of the reader.
Author: RB & AL
