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- Stripe enables automated USDC subscriptions via smart contracts.
- The service targets AI and Web3 businesses in the U.S.
- Stripe expands its regulated stablecoin infrastructure with Bridge and Open Issuance.
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Financial technology leader Stripe announced on October 14 that it is enabling businesses in the U.S. to accept recurring subscription payments using USD Coin (USDC). Initially running on the Polygon and Base blockchains, this new service is designed for companies with recurring revenue models, including AI platforms and Web3 services, streamlining digital payments for a growing crypto economy.
Simplifying Recurring Payments with Smart Contracts
The new recurring payment feature leverages smart contracts, allowing customers to save a crypto wallet and authorize recurring debits automatically. This removes the need for manual transaction approvals, offering a smoother user experience for subscribers. While this promises convenience, the security of these smart contracts will be closely monitored. Stripe has yet to provide details on independent audits, which will be crucial for building trust among businesses and users.
Stripe’s Broader Stablecoin Strategy
Stripe’s move into recurring crypto payments aligns with a broader push into the stablecoin ecosystem. Its subsidiary, Bridge, has applied for a national bank trust charter with the U.S. Office of the Comptroller of the Currency (OCC), positioning Stripe alongside Circle, Ripple, and Paxos in pursuing federally regulated stablecoin operations.
In addition, Stripe unveiled its “Open Issuance” platform at a New York showcase on September 30. This initiative allows businesses to issue their own stablecoins through Bridge, expanding the tools available for companies entering the crypto space.
Also Read: Robinhood and Stripe Are Building Blockchains — Is Wall Street Finally Ready?
Capturing the Growing Stablecoin Market
Stripe’s recurring payment service arrives at a time when stablecoins are rapidly gaining traction. The total market capitalization for stablecoins now exceeds $293 billion, with monthly transfer volumes reaching $3.7 trillion and over 29 million active addresses, according to RWA.xyz. By providing developer-friendly APIs and comprehensive payment infrastructure, Stripe is positioning itself as a central player in the expanding digital economy.
Stripe’s USDC recurring payments mark a significant step in making crypto more practical for everyday business operations. By combining convenience, regulatory compliance, and developer-focused tools, Stripe strengthens its role as a cornerstone of the stablecoin and Web3 payments landscape.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
