Stripe’s popular payment processing platform will enable businesses to pay their consumers in bitcoin.
According to Stripe’s statement on Friday, Twitter is the first one to join up. For content providers, Twitter has an expanding set of revenue tools. Stripe’s agreement with Facebook will allow a limited number of creators to receive cryptocurrencies in exchange for money generated through Facebook’s monetization services.
Stripe is a cloud-based payment processing platform used by millions of businesses worldwide. After its most recent funding round in March, the firm was valued at $95 billion. Stripe reportedly made $7.4 billion in sales in 2020, up 70% from the previous year.
It will use a stablecoin tied to the US dollar
Along with its basic payment processing platform, Stripe offers a variety of financial solutions. Stripe Connect is one such solution, and it’s utilized by organizations like social media platform operators to pay their members.
Stripe Connect will be updated to include the new bitcoin payment capabilities announced on Friday.
At first, participating businesses will be able to pay users in USDC, a stablecoin tied to the US dollar. The Polygon network will be used to process transactions. In this instance, Polygon is a sidechain or blockchain linked to another blockchain, Ethereum.
Plans to expand
In a blog post, stripe crypto product manager Karan Sharma noted that payouts would take place through the Polygon network, which was picked for its reasonable fees, speed, connectivity with Ethereum, and broad wallet compatibility.
Once creators get their profits, they can keep their balance on Polygon or bridge to Ethereum and exchange it for a different currency.
Stripe intends to extend support for other bitcoin payment options in the future. By the end of the year, the business hopes to have Stripe Connect, the service via which it provides bitcoin support, available in more than 120 countries.