Payment on ramps and offramps in crypto are a constant challenge. While governments can’t shut crypto down, they can make it more difficult for us to transact. They can make it more difficult to exchange fiat for crypto. Stripe will be making it easier. Again.
Stripe supported Bitcoin for a while. It stopped in 2018 saying Bitcoin was not useful for payments. Top 10 projects today like Solana and Terra didn’t even exist in 2018. But many do and make crypto more useful now.
And today they are back in the game. They announced on Twitter.
Stripe now supports crypto businesses: exchanges, on-ramps, wallets, and NFT marketplaces. Not just pay-ins but payouts, KYC and identity verification, fraud prevention, and lots more. https://t.co/3X173SkdPd
— John Collison (@collision) March 10, 2022
What Stripe Will Offer
Stripe already leads in building out payment APIs that are easy to use. Their new crypto offerings will be:
- payment on-ramps to over 180 countries in local currency
- payment off-ramps to over 45 countries in local currency with the Connect program
- BAAS banking as a service tools for crypto businesses
- Integration for NFT marketplaces
- ID verification and fraud prevention through KYC and machine learning models
- Programmatic payouts in local fiat to users, creators, or customers
As you can see, it’s a pretty comprehensive program. Even with the KYC requirements, the industry needs this, if we are being honest with ourselves. As governments lean more authoritarian around the world, the first way they will try to stop crypto is through its on-ramps. This is just one more good on-ramp people can use.
Existing Payments Solutions
While this solution looks like it will be the most comprehensive based on Stripe’s history, it’s not the only game in town.
For a few years now, Simplex and Moonpay have been in this space and many platforms and wallet integrations include them.
But they have a problem.
They have low authorization rates. Part of it is the industry. The propensity to try to scam and reverse a payment when a card user knows that crypto payments are not reversible is hard for some to resist. Even those who are usually honest in other circumstances. Risk of fraud is incredibly high.
And while details of what the KYC program with ID verification will look like are not available yet, there is an existing sample. Both Blockchain.com and FTX use Stripe for a card payment programs. And both are happy with the results.
Payments for crypto companies in the US, UK, and EU will be able to accept:
- Visa/Mastercard debit and credit cards with the full verification requirements
- ACH or SEPA
- ApplePay and GooglePay
- and many local EU payment methods like Giropay and Multibanco
They expect to open in more markets soon but so far just US, UK, and the EU. Regardless, this is great news for everyone looking for another easier way to convert funds into crypto.
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