Stripe plans to re-introduce cryptocurrency payments after ending Bitcoin transactions six years ago. The payment firm recently announced that it will allow merchants to accept payments using stablecoins. This step will allow them to benefit from faster transactions and low fees in digital assets.

Instant On-chain Transactions

In a statement during the company's Global Internet Economy conference, Stripe's Co-Founder and President, John Collison, mentioned that Stripe will bring back crypto payments this summer. The firm halted Bitcoin transactions in 2018 due to volatility and technical limitations.

Collison mentioned: "We're excited to announce that we're bringing back crypto as a way to accept payments, but this time with a much better experience. Transactions instantly settle on-chain and automatically convert to fiat."

He acknowledged the technical improvements in the cryptocurrency space, including faster transaction speeds and lower fees. According to Collison, these factors make cryptocurrencies more attractive for online transactions.

Crypto is back. @Stripe will start supporting global stablecoin payments this summer. Transactions instantly settle on-chain and automatically convert to fiat. Join the waitlist https://t.co/hws2OsU3Id and watch the demo (h/t @Solana) from Sessions. pic.twitter.com/zGKYW2FM6i

— John Collison (@collision) April 25, 2024

Unlike Bitcoin's price volatility, stablecoins offer a more predictable value. This minimizes the risk of sharp fluctuations for businesses and customers. During his presentation, Collison demonstrated a crypto payment using Circle's USDC stablecoin on Stripe's platform.

Stripe Learns from the Past

Stripe's previous experience with Bitcoin payments was not successful. Collison admitted Stripe's initial entry into the cryptocurrency space was a "pretty terrible payment experience". However, this relaunch will focus on the more stable and user-friendly stablecoins.

In 2022, Stripe launched a new service allowing businesses to offer customers a way to convert fiat currency into cryptocurrencies. Some of the payment firm's clients include Blockchain.com, MetaMask, and Magic Eden. Stripe is eying stablecoins such as USDC, which is pegged to the US dollar. This stability makes it a more attractive option for merchants who want to avoid the price fluctuations in crypto.