Stripe, the software used by millions of businesses to process payments, has just announced a partnership with Crypto.com to facilitate the acceptance of cryptocurrency.
The collaboration will also allow Stripe users to purchase crypto with credit or debit cards.
Bitcoin (BTC=F), the most notable cryptocurrency, has been wavering above and below $90,000 in the past month after topping out over $126,000 in October.
News of the Stripe/Crypto.com alliance failed to motivate bitcoin higher in early trading Wednesday.
>> See full crypto coverage on Yahoo Finance
Stripe provides its payment services to merchants in over 50 countries and supports over 135 currencies. It processed over $1.4 trillion in payments in 2024.
This is the first cryptocurrency integration for the Stripe payment platform. Crypto.com, founded in 2016, is a cryptocurrency and stablecoin exchange that enables the purchase, sale, and trading of more than 400 digital assets.
Read more: What is bitcoin, and how does it work?
The new agreement will allow Stripe merchant customers to check out and pay with their favorite crypto or stablecoin. Stripe is used by online and brick-and-mortar businesses, freelancers, large corporations — practically any form of commerce that accepts payments online or in person.
Stripe and Crypto.com then convert the payment into the merchant’s preferred local currency, which can be deposited into a bank account.
“Increasing everyday accessibility to and utility of cryptocurrencies for consumers and merchants is central to our vision at Crypto.com,” Joe Anzures, general manager and executive vice president of payments for Crypto.com, said in a statement. “We are excited to partner with Stripe, a recognized leader in digital payments, to collectively catalyze a new era for crypto-enabled commerce.”
The new crypto collaboration will roll out in the U.S. this month, before “quickly expanding” to other countries.
Paying a merchant with crypto, or accepting it as a business owner, has its pros and cons, as noted by the U.S. Chamber of Commerce:
For consumers
Pro: Crypto has a layer of identity theft protection that credit card payments lack. Card payments are implemented in a centralized hub. That’s where data breaches can occur. Crypto is stored in a digital wallet.
Con: Paying with crypto can trigger a tax bill. In effect, you’re selling the digital asset to pay for something. The IRS considers crypto to be property, which is taxed at a capital gains rate.
Con: Price volatility can mean regret for purchases when crypto values soar — unless you use stablecoins. The famous example? The man who spent 10,000 bitcoins to buy two pizzas in what is said to have been the first crypto purchase in 2010.
Read more: Yes, crypto is taxed. Here’s when you have to pay
For merchants
Pro: Lower fees are possible, particularly for international transactions. Credit card companies charge between 2% and 4% or more in merchant fees. Crypto exchanges may charge as little as 1%.
Pro/Con: Crypto payments are immediate and permanent. Merchants won’t see chargebacks on bad payments (that’s a pro), but refunds will have to be manually accounted for, keeping track of the crypto value at the moment of payment (con).
Con: Tax treatment and regulations can change often and quickly.
Read more: Can you buy crypto with a credit card? See the pros and cons.
