Coinbase Global has taken a significant leap into mainstream crypto payments by unveiling Coinbase Payments, a stablecoin payment solution designed for commerce platforms. Shoppers, merchants, and e-commerce platforms will be able to use the full-stack payment solution to make seamless payments in USDC 24/7. According to the company, Coinbase Payments is built to reduce platforms’ reliance on blockchain infrastructure, allowing PSPs, marketplaces, and commerce infrastructure providers to integrate stablecoin payments quickly.
The move ushers in the next age of stablecoin commerce, bridging the gap between commerce and crypto. Already live via Shopify, the launch represents a groundbreaking moment for Coinbase and crypto-savvy shoppers, who would be able to execute low-cost, USDC transactions. With the current integration of USDC for payments mean that stablecoins are gradually gaining ground? Here’s why this matters.
Coinbase Payments Will Ease Payments for Everyday Crypto Shopper
With Coinbase Payments, merchants will accept USDC instantly without needing a blockchain infrastructure. The payment solution features a browser-native, gasless payment flow for making payments with the proprietary Coinbase Wallet and third-party ones like MetaMask. It also features a plug-and-play API for handling refunds and other ledger accounting and smart contracts for instant execution.
For merchants, one of the biggest benefits of this new payment solution is cross-border transactions. Stablecoins came into the scene to enable cross-border payments, mitigating the issue of high banking fees. Besides, USDC payments solve the issue of settlement. No more will a merchant wait for days before the funds finally clear. Furthermore, merchants worry less about reduced profit margins.
Coinbase has already integrated with Shopify Payments, allowing seamless USDC acceptance for millions of merchants globally. Early adopters are already live, with commerce giants including BarkBox, SKIMS, and Vuori preparing for USDC checkout rolls across stores worldwide. Shopify plans to roll out an incentive of 1% USDC cashback for buyers, making the whole package even more attractive.
Stablecoins Finally Gaining Ground
Launching Coinbase Payments and settling transactions in USDC proves the mettle of stablecoins’ utility. Finally, this asset class is gaining real-world traction in the business space. Not just that, but also fostering inclusivity, which stablecoins are all about. Besides, the stability of stablecoins means that merchants and crypto consumers don’t have to deal with the volatility that comes with other digital asset classes.
The timing aligns with the recent passage of the GENIUS Act in the Senate, which uniquely positions USDC as a legitimate asset for transactions. Not only does this benefit the e-commerce space, but it is advantageous to Circle, the issuer of USDC.
Recently, Circle stocks spiked to $165 before closing at $151, after the passage of the GENIUS Act. This marked a 434% increase from its IPO price. The stocks are continuously setting new all-time highs due to renewed investor confidence in USDC. The GENIUS Act will pave the way for more legitimate stablecoin adoption, and Coinbase Payments couldn’t have emerged at a better time.
More Crypto Payment Solutions On the Way?
Coinbase Payments will introduce additional payment solutions for merchants and crypto consumers, just as Stripe, BitPay, CoinGate, CryptoPay, and others have inspired the USDC payment solution. More businesses around the globe are becoming more receptive to crypto payments to reach new markets and demographics. Therefore, more cryptocurrency payment gateway providers are expected to emerge in the future.
However, some challenges may hinder adoption. First is the technical integration. Integrating crypto payment gateways into checkouts is done through different methods, commonly through plugins and APIs. Platforms may struggle to add this to their checkouts, which could complicate payments.
Second is compliance. Crypto regulations are continually evolving, with KYC/AML requirements getting stringent. It’s crucial for platforms to partner with crypto payment gateway providers that are compliant and have a strong risk team. Otherwise, they will attract the hammer of regulators.
Customer demand is another hindrance to adoption. Without clear incentives, consumer behavior change may be sluggish. Notwithstanding, Coinbase Payments will drive USDC adoption in everyday commerce. If this catches fire, we may see other stablecoin issuers partner with payment service providers to enter the e-commerce fold.