Paxos Launches New Stablecoin Payments Platform with USD Conversion, Stripe Adopts

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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October 16, 2024 11:12 EDT

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On Tuesday, October 15, 2024, Paxos, the company behind Pax Dollar (USDP), revealed a new stablecoin payments platform designed for payment service providers (PSPs) and fintech firms.

This platform aims to streamline global transactions and promote the use of stablecoins for faster and more cost-effective payments.

Stripe Integration with Paxos Stablecoin Payments

As part of its strategy, Paxos announced that Stripe, a leading global payment processor, is one of the first PSPs to integrate this infrastructure into its “Pay with Crypto” product.

This integration allows users to accept stablecoin payments, which are settled in fiat currencies, such as the U.S. dollar.

Paxos offers a comprehensive solution for onboarding, pay-ins, conversions, and payouts, enabling payment providers to operate more efficiently.

Businesses can manage payments while reducing transaction costs and extending their reach internationally.

The platform currently supports three major stablecoins—Pax Dollar (USDP), PayPal USD (PYUSD), and Circle’s USD Coin (USDC).

It allows businesses to accept payments globally, and merchants can settle payments in either fiat or stablecoins, with the option to issue refunds through seamless fiat-to-stablecoin conversions.

This partnership with Stripe represents just the beginning of Paxos’ larger strategy to integrate stablecoins into mainstream financial operations.

Stripe, which already facilitates transactions from over 70 countries, will further amplify the global reach of this collaboration.

Global Reach of Stablecoin Payments Through Stripe

Users and merchants can convert between stablecoins and fiat seamlessly, including issuing refunds in the original payment method.

For on-chain transfers, the platform supports PYUSD and USDP on the Solana and Ethereum networks, and USDC on Ethereum, Solana, and Polygon.

Paxos’ regulatory-focused approach ensures that the platform adheres to established standards for custody and payments, providing a robust and secure infrastructure for PSPs and fintech firms.

“Stablecoins are the future of payments and money movement,” said Ronak Daya, Head of Product at Paxos.

He added, “This new stablecoin payments offering gives enterprises the infrastructure to onboard clients, power pay-ins and payouts, and move money globally.”

Stablecoin Market Growth Reaches $170 Billion Milestone

The stablecoin market has surged past $170 billion in value as of September 2024, reflecting significant growth in the industry.

Tether, the largest stablecoin operator with USDt, reported a record $5.2 billion profit in the first half of 2024, and many firms are now launching new stablecoins and payment solutions.

Paxos emphasized that the Paxos stablecoin payments platform is flexible, with no fixed limit on the number of stablecoins, expanding assets and chains according to customer demand.

According to Alice Liu, lead researcher at CoinMarketCap, the stablecoin market acts as a reserve ready to be deployed into cryptocurrencies when Bitcoin (BTC) prices rise.

Despite some cryptocurrencies, like Ether (ETH), remaining below their 2021 peaks, the stablecoin market is only 8% off its $187 billion high from spring 2022.

Stablecoins currently account for about 50% of all value settled on public blockchains, with Bitcoin representing 25%.

Increased stablecoin holdings on exchanges, which have grown by 20% this year, often precede rising prices, indicating that these assets could drive market momentum as prices increase.