Stripe has launched a feature that will enable businesses to pay users with stablecoins.
The solution is going to be tested on Twitter first. Stripe is now enabling merchants to make direct payments in USDC, a stablecoin that is issued by crypto firm Circle.
A limited number of Twitter creators will be allowed to start receiving earnings in USDC, which will serve as a litmus test for future mass-scaling of the feature and its effects on the social media economy.
Stripe has been known to to-and-fro in the cryptocurrency industry, giving up on support for bitcoin (BTC) several years ago and choosing to instead work on stablecoins.
Up until 2018, the company was happy to process crypto payments issued in BTC, but Stripe rethought its strategy arguing that it could not accept currency that is increasingly linked to fraudulent activity.
Stripe isn’t the only company that is openly investigating the uses of cryptocurrencies and their underpinning technology. Many payment processing companies are exploring crypto and implementing it in their day-to-day operations, including Visa, MasterCard and PayPal.
Stripe will send Twitter users to crypto wallets on the Polygon network, which is based on the ethereum blockchain through a Layer 2 solution. From there, the crypto may be converted into any other currency.