Stripe Inc., an online payments company, is once again entering the crypto arena via its integration with Twitter to offer creators payments in crypto.
The new integration, incorporating Stripe‘s Connect Platform, will be the first in a new rollout that will enable creators to receive payments in USD Coin, a Circle-issued stablecoin pegged to the US dollar. The Connect platform can be accessed via a developer Application Programming Interface (API). The company, worth $95B, after its latest Series H funding round on March 14, 2021, is making its re-entry into the cryptocurrency space, following its abandonment of Bitcoin ambitions in 2018, by providing creators on Twitter an opportunity to receive revenue from Ticketed Spaces and Super Follows.
Stripe’s history with crypto
In January 2018, Stripe cited bitcoin’s volatility and inefficiency in making everyday transactions as its primary reasons for dropping the cryptocurrency. In dropping Bitcoin, it cleared the way for Block Inc., PayPal Holdings Inc, and Checkout.com to plunder the payments space. After forming a Web3 and crypto-dedicated team, it is willing to retake the plunge. “While the ‘store of value aspects of cryptocurrencies typically receive the most attention, we view the prospect of ‘open access global financial rails’ as being at least equally compelling,” said Karan Sharma, Stripe’s crypto product manager said, on Friday. “As a result, we’ve been exploring ways to use cryptocurrency-based platforms to unlock broader access.”
Layer-2 solution Polygon, built on Ethereum, will process the payments at a quicker speed and lower cost than the Ethereum mainnet. If you are a creator on the short-list, you can use MetaMask, Coinbase Wallet, and Rainbow to receive payments. “Once creators receive their earnings, they can hold their balance on Polygon or choose to bridge to Ethereum and exchange it into another currency,” the company said. In time, the company plans to add more cryptocurrencies, said Sharma.
Stripe to handle crypto complexities
Twitter uses Stripe’s Connect platform to enable compensation of creators in various ways; Twitter Tips, Super Follows, and ticketed Spaces are all products that exploit monetization potential using Connect. Twitter is offloading all the crypto-related mechanics in the payment process to Stripe. “No code changes are required, and platforms can avoid taking on the challenges of acquiring, storing, or transferring crypto themselves,” the social media company said in an announcement.
Twitter last year integrated the Strike API into its Tipping feature, making bitcoin payments possible on the Lightning Network. However, the feature had a very limited rollout. In contrast, Twitter’s Stripe API will be rolled out to more than 120 countries by the end of this year and is the first time Twitter will be integrated with the environmentally-conscious Polygon blockchain and the USD Coin.
Connect is already available in 70 local fiat currencies.
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