Stripe, the software used by millions of businesses to process payments, has just announced a partnership with Crypto.com to facilitate the acceptance of cryptocurrency.
The collaboration will also allow Stripe users to purchase cryptocurrencies with credit or debit cards.
Bitcoin (BTC=F), the most noteworthy cryptocurrency, has oscillated above and below $90,000 over the past month, after surpassing $126,000 in October.
The news of the Stripe/Crypto.com alliance failed to motivate bitcoin higher at the start of the session on Wednesday.
>> See complete crypto coverage on Yahoo Finance
Stripe provides its payment services to merchants in over 50 countries and supports over 135 currencies. It processed more than $1.4 trillion in payments in 2024.
This is the first cryptocurrency integration for the Stripe payment platform. Crypto.com, founded in 2016, is a cryptocurrency and stablecoin exchange that enables the buying, selling and trading of over 400 digital assets.
Learn more: What is Bitcoin and how does it work?
The new deal will allow Stripe merchant customers to pay and pay with their favorite crypto or stablecoin. Stripe is used by online and brick-and-mortar businesses, freelancers, large corporations – virtually any form of commerce that accepts online or in-person payments.
Stripe and Crypto.com then convert the payment into the merchant’s preferred local currency, which can be deposited into a bank account.
“Increasing the everyday accessibility and utility of cryptocurrencies for consumers and merchants is core to our vision at Crypto.com,” Joe Anzures, general manager and executive vice president of payments for Crypto.com, said in a statement. “We are excited to partner with Stripe, a recognized leader in digital payments, to collectively catalyze a new era for crypto commerce. »
The new crypto collaboration will roll out in the US this month, before “rapidly expanding” to other countries.
Paying a trader with crypto, or accepting it as a business owner, has its pros and cons, as noted by American Chamber of Commerce:
For consumers
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Pro: Crypto has a layer of identity theft protection that credit card payments lack. Card payments are implemented in a centralized hub. This is where data breaches can occur. The crypto is stored in a digital wallet.
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Swindle: Paying with cryptocurrencies can trigger a tax bill. In effect, you are selling the digital asset to pay for something. The IRS considers crypto to be property, which is taxed at capital gains rates.
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Swindle: Price volatility can mean purchasing regrets when cryptocurrency values skyrocket – unless you’re using stablecoins. The famous example? The man who spent 10,000 bitcoins to buy two pizzas in what would have been the first crypto purchase in 2010.
Learn more: Yes, crypto is taxed. Here’s when you have to pay
For traders
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Pro: Lower fees are possible, especially for international transactions. Credit card companies charge between 2% and 4% or more in merchant fees. Crypto exchanges can charge as little as 1%.
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For/Against: Crypto payments are immediate and permanent. Merchants won’t see chargebacks on bad payments (this is a plus), but refunds will have to be accounted for manually, keeping track of the crypto value at the time of payment (cons).
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Swindle: Tax treatment and regulations can change often and quickly.
Learn more: Can you buy crypto with a credit card? See the pros and cons.
