Stripe will now enable subscription payments in USDC through the Base and Polygon blockchains.
Summary
- Stripe enabled subscription payments in USDC on Base and Polygon blockchains.
- The platform will use a smart contract that enables recurring payments from crypto wallets
- Some of the biggest U.S. companies on Stripe get most of their revenue from abroad
Stablecoins are one step closer to mainstream payments. On Tuesday, October 14, Stripe announced the launch of subscription billing in USDC, starting with Base and Polygon. The new offering will serve the 30% of Stripe merchants who operate on recurring revenue models.
The feature will let users make subscription payments from their wallets that will settle in fiat currency. Users will also be able to manage their stablecoin subscription payments on the Stripe Dashboard. According to Stripe, this will attract more users, both crypto natives and users who do not have access to other payment methods.
“We’re incredibly excited about rolling out stablecoin subscription payments with Stripe. Stablecoin payments help us reduce our cost of revenue for payments from all around the globe, attract more tech-forward users, and reach folks who don’t have access to other payment methods,” said Alex Mashrabov, CEO, Higgsfield.
To enable subscriptions, Stripe will leverage a smart contract that enables customers to authorize their wallets to send recurring payments. The firm highlighted that this feature, which removes the need to re-sign every transaction, supports 400 different wallets. The feature will first roll out for U.S.-based businesses and will enable subscription payments in USDC over the Base and Polygon blockchains.
Stripe sees huge growth in stablecoin payments
Stripe highlighted that stablecoin payments contributed to the growth of some of the most dynamic companies on the platform. The firm revealed that the top 20 companies on its platform, 19 of which are U.S.-based, draw 60% of their revenue outside the United States.
For these companies, stablecoins enable faster settlements and lower fees for cross-border payments. As a result, some companies are seeing a significant increase in their stablecoin payment volumes, Stripe revealed.
