Stripe Partners With Twitter To Offer Global Cryptocurrency Payouts in USDC
The global payment company will utilize the Polygon network to achieve this new payout system.
The announced global USDC payout offering by Stripe was inspired by the fact that there are so many creators, freelancers, sellers, and solo entrepreneurs who are still struggling to find convenient payment solutions — especially outside of major markets.
Initially, this is what Stripe Connect was created to solve, and currently, it services over 70 countries by programmatically sending payouts in their own local currencies. However, there are many countries that are unable to utilize these services due to the complexity of supporting their local payment systems. To solve this, Stripe has looked to cryptocurrency as “open-access global financial rails” that they can use to reach countries that might not otherwise be able to participate in the global economy.
As a pilot for the new crypto payouts on Connect, Stripe will tap its first partner Twitter and roll out the system to a select group of creators on the app who will be able to receive their earnings in cryptocurrency. This will be achieved with payouts being sent to the user’s selected cryptocurrency wallet, these wallets include MetaMask, Coinbase Wallet, and Rainbow. Stripe has chosen Polygon as its network to run these payouts because of its compatibility with different wallets, low fees, fast speed, and integration with Ethereum.
Initially, the payouts will be sent as USDC, which is a stablecoin that is pegged to the US dollar. This will allow users who may not have had access to USD before to do so now. Once the payouts are received, creators can decide to hold their earnings on the Polygon network, or bridge to Ethereum and exchange it into another currency of their choice.
By the end of 2022 Stripe plans to support crypto payouts in more than 120 countries, with support for additional crypto networks, and cryptocurrencies to come.
Elsewhere in Web3, NFT platform Blockparty launches a new decentralized trading marketplace.