The international financial technology company that processes payments – Checkout.com – enabled customers to use the popular stablecoin USDC as a payment method. The offering became available after striking a partnership with the crypto security firm Fireblocks.
Saying ‘Yes’ to Payments in USDC
Checkout.com revealed that merchants will be allowed to use the new offering 24/7, including weekends and holidays. Traders who accept Circle’s stablecoin as a means of payment will be able to convert the funds directly into fiat currency. The company highlighted it is the first in its field to gain access to Fireblocks’ cryptocurrency payout technology.
The firm has already facilitated settlements of more than $300 million worth of USDC. During those transactions, Checkout.com had “tested, refined, and optimized” the initiative so it could be successfully introduced to clients.
Ran Goldi – Vice President of Payments at Fireblocks – thinks Checkout.com’s interaction with stablecoins will provide certain benefits to clients and merchants as transactions are usually available on weekdays from 9 am to 5 pm:
“Checkout.com’s weekend settlement means that merchants are no longer restricted by arbitrary settlement times. With our in-house team’s deep knowledge and expertise in digital asset payments, Fireblocks looks forward to our continued collaboration with Checkout.com to bring even more game-changing solutions to the payments space.”
For his part, Joe Start – Head of International Expansion and Partnerships at Transak – informed that the crypto offering will initially support only USDC. However, it might “expand to a wider range of assets over time.”
Ever since the collapse of Terra’s algorithmic stablecoin – UST – many people have wondered whether all types of stablecoins can operate in the financial system. However, there’s a certain distinction between UST and USDC as the former was based on algorithmic code, while the latter is a 1:1 stablecoin backed by the USD.
According to Jess Houlgrave – Head of Crypto Strategy at Checkout.com – regular stablecoins, such as USDC, will improve the “underlying payment landscape.”
“We’re investing heavily to ensure we can fulfill our mission to enable businesses and their communities to thrive in the digital economy – which we believe includes Web3 and as we see the market reaction, we hope to see more merchants, both crypto native and non-crypto native adopt this,” she concluded.
With a valuation of $40 billion, Checkout.com is among the leading companies in its sector. Throughout the years, it has inked deals with Visa, Mastercard, Alipay, and WeChat. Some of its most popular clients include Netflix, Pizza Hut, and H&M.
Stripe’s Interaction With USDC
In April this year, the American fintech company Stripe teamed up with Twitter to allow a certain group of creators to send and receive payments in Circle’s stablecoin via its settlement platform – Connect.
The firm tapped the Polygon network since it provides “low gas fees, high speed, broad wallet compatibility, and integration with Ethereum.”
USDC is pegged to the American dollar and is backed by cash and short-term US government bonds as collateral. For every token in circulation, $1 is held in collateral. Having that in mind, Stripe considers the asset’s price stable and launched its crypto payment offering with it. It said that in the future other digital currencies might be added.
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