Stripe, a global payments processor based in the United States and Ireland, has launched a tool that will allow customers to purchase cryptocurrencies with fiat currency. The tool, currently available to select customers in the United States, is simple and requires just ten lines of code. It will primarily serve decentralized exchanges, NFT platforms, and decentralized applications (dApps).
With Stripe’s tool, the end user will be able to acquire cryptocurrency and participate in the Web3 ecosystem more simply. According to a Stripe blog post, the program already has 16 partners, including music platform Audius, Solana-centric NFT marketplace Magic Eden, and non-custodial Ethereum wallet Argent.
The launch of Stripe’s fiat-to-crypto on-ramp could increase adoption of cryptocurrency and push the Web3 space further into the mainstream. Currently, it is difficult and taxing to enter the ecosystem, with most people needing to buy cryptocurrency on a centralized exchange and transfer it to a non-custodial wallet.
Keeping the process as simple as possible for end users, Stripe will handle all the know-your-customer protocols, payments, fraud, and compliance. This will remove the need to rely on multiple third-party services. The fiat-to-crypto on-ramp will come with Link, a Stripe service that saves payment information to make future payments easier and more seamless.
Jennifer Lee, a product manager at Stripe, wrote that the company is excited about the future of cryptocurrency and Web3. Stripe, with its years of “optimizing conversions, enabling custom checkout flows,” and mitigating fraud, is dedicated to creating powerful “developer experiences” to support Web3.
Mainstream Companies Innovate with Crypto in 2022
While cryptocurrency is still a niche industry, some mainstream companies are experimenting with the technology. At Rarity Sniper, we have written many stories this year involving mainstream companies and cryptocurrency. Here are three.
First, two months ago, trading platform Robinhood released a beta version of its non-custodial crypto wallet. The wallet allows customers to swap cryptocurrencies with no fees, as well as access the decentralized web. In a blog post, Robinhood said its non-custodial wallet was a “wallet worth the wait.”
Next, on August 2nd, Gucci announced it would start accepting ApeCoin at U.S. stores, making it the first major company to do so. ApeCoin, the official cryptocurrency of Yuga Labs, had benefited holders of the Bored Ape Yacht Club and Mutant Ape Yacht Club collections tremendously. Now, Gucci customers in the U.S. could use it for purchases.
Lastly, nine months ago, Stripe, the focus of our article, launched a crypto business suite. The suite would allow businesses to use Stripe’s API to buy and store over 135 cryptocurrencies, trade NFTs, accept fiat for cryptocurrencies, and payout users in fiat. At the time, Stripe hoped the move would broaden its audience.
Stripe’s new fiat-to-crypto on-ramp is big news for the industry, as it will allow businesses in Web3 to onboard users more easily. Although the tool has competition from Moonpay and other services, it is hard to see the new tool not being successful. And if it is, more payments companies may follow suit with their own on-ramp tools.