Stripe is testing a way for users to receive their payouts in cryptocurrency, starting with “a select group of creators on Twitter.” Creators who earn money through monetization features on the platform can now get their earnings in USD Coin (USDC) — a “stablecoin” cryptocurrency tied to the US dollar.
Stripe is piloting the crypto payout option through the company’s payment processor, Stripe Connect, that customers can integrate into their online platform or marketplace. Crypto payouts will occur over the Polygon network, a blockchain tied to Ethereum that allows for faster and more efficient transactions. After receiving their funds, users can choose to store their earnings in Polygon or exchange it for another currency.
Financial service institution Stripe announced last Friday that it will use Polygon, a decentralised Ethereum scaling network, to enable its customers to pay content creators, service providers, freelancers, and sellers in cryptocurrencies.
The Irish-American financial services with dual headquarters in San Francisco, US and Dublin, Ireland, said that it will start allowing initial payouts to be made using USDC stablecoins native to Polygon’s network and via Polygon-compatible wallets.
The famous financial services company stated that such payments would be accessible through its ‘Stripe Connect’ — its system for integrating payments into online marketplaces.
According to Stripe, Twitter will be the first company to integrate the new payment method to provide its merchants with the ability to make payouts in cryptocurrency through USDC stablecoin.
They can keep that cryptocurrency as USDC on Polygon, or choose to bridge to Ethereum and exchange it into another currency.
“Stripe will handle all crypto-related complexity and operations,” Sharma explained. “No code changes are required, and platforms can avoid taking on the challenges of acquiring, storing or transferring crypto themselves.”
Twitter’s product lead for creators, Esther Crawford, said this offering will give Twitter’s power users “more choice in how they get paid”.
For Stripe, it’s a move towards greater financial inclusion.
“This will enable many people who wouldn’t otherwise be able to hold dollars to do so,” said Sharma.
“While we are continuously expanding our geographic coverage, many countries remain out of reach in part due to the intrinsic complexity involved in supporting heterogeneous local payments systems.
In addition, using Stripe, companies like Twitter can offer creators the choice to receive payments in crypto. Initially, the payouts will be available using USD Coin (USDC), a stable coin pegged to the US dollar,” Stripe Incorporation said in a press release.
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Stripe is working with #Polygon for its latest push into crypto! Platforms and marketplaces powered by @Stripe can now instantly pay their sellers, freelancers, content creators, and service providers #onPolygon using USDC 👇 [1/3] pic.twitter.com/SJsiAUASZ4
— Polygon 💚 (@0xPolygon) April 22, 2022
How Will It Work For Twitter Content Creators?
Twitter has several content monetisation products like ‘Ticketed Spaces’, Super Follows, among others. Content creators can use this to earn money.
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“Twitter is where people go to have conversations about what’s happening. We’re focused on helping creators who are driving those conversations earn money and connect with their audiences in new ways. We’re excited to begin offering crypto payouts to creators via Stripe so they have more choice in how they get paid,” Esther Crawford, product lead for creators at Twitter said in the announcement.
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Payment processor Stripe has announced its first foray into the crypto space with support for stablecoin USDC.
On the evening of April 22, payment company Stripe announced that it would expand into the crypto space by accepting the stablecoin USDC. Stripe is one of the top payment processors in the US, with a 2020 transaction volume of $350 billion.
Accordingly, Stripe users will be able to use USDC to directly pay for goods and services connected to its payment gateway.
In the immediate future, Stripe will introduce USDC payments to the social network Twitter to pay content creators.
Introducing crypto payouts: https://t.co/xJnpLmsBKn.
While Stripe says it will “initially” support payouts in USDC, it plans on adding “support for additional rails and payout currencies” in the future.
Stripe also says it hopes to support crypto payouts in over 120 countries by the end of this year, but it’s unclear when it plans on expanding this feature to customers outside of Twitter. Last month, Stripe introduced fiat payment application programming interfaces (APIs), giving cryptocurrency businesses access to tools that make it easier to process payments. Stripe wasn’t always on board with crypto. In 2018, it dropped support for Bitcoin payments, citing that customers just weren’t that interested in using it.
“We’re focused on helping creators who drive those conversations earn money and connect with their audiences in new ways,” said Esther Crawford, the product lead for creators at Twitter.
Financial infrastructure platform Stripe announced that platforms and marketplaces on Stripe can now instantly pay funds to their sellers, freelancers, content creators and service providers using cryptocurrency. Payouts will initially be available using USD Coin (USDC), a stablecoin pegged to the US dollar, the company said in an announcement.
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Using Stripe, platforms such as Twitter can offer creators the choice to receive payments in crypto. Twitter will use this feature to pay out earnings from Ticketed Spaces and Super Follows.
Ticketed Spaces and Super Follows, to receive their earnings in the stablecoin.
Stripe further mentioned that businesses and platforms using ‘Stripe Connect’ will be able to pay out in USDC without purchasing or holding the stablecoin itself.
Polygon co-founder Sandeep Nailwal talked about the development and said: “With crypto payouts, platforms using Stripe can instantly send money to verified recipients nearly anywhere in the world.”
Stripe stated that it plans to add support for additional cryptocurrencies and payout currencies over time.
More User-friendly to Access Crypto Worldwide
The latest development is Stripe’s efforts to expand its crypto offering services.
In March, Stripe reintroduced its crypto trading services after dropping the Bitcoin service in 2018.
This option will initially be offered to a small group of Twitter’s US creators, according to the announcement.
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“Today, we’re introducing crypto payouts for Connect. With crypto payouts, a select group of creators on Twitter–our first partner–will be able to use cryptocurrency-based rails to receive their earnings from Twitter,” the company added in a blog post. “Creators, freelancers, sellers and solopreneurs are building and creating all over the world.
Unfortunately, this makes participation in the online economy harder for many of those who stand to benefit most.”
Stripe plans to add support for additional crypto services and currencies in the future.
By the end of the year, it expects Stripe Connect will support crypto payouts in more than 120 countries.
The payments company founded by Ireland’s Collison brothers first dipped its toes in cryptocurrency with bitcoin transactions in 2015. It later dropped support for bitcoin due to its volatility and lengthy transaction times.
Last month, however, Stripe returned to the crypto craze after a four-year hiatus, announcing a partnership with global cryptocurrency exchange FTX to make crypto investments “easier than ever”.
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