Stripe Connect is a product built by Stripe, the payment processing company, to help sellers, creators, freelancers, and solopreneurs receive payments. The product is designed to help users around the world send and receive payments in over 70 local currencies.
However, the complexity of local payment systems around the world makes it harder to reach more people. Fortunately, there is crypto. As a result, Stripe has been working on how to allow people to receive payments via crypto when using the Stripe Connect product.
Twitter integrates Crypto Payments with Stripe Connect
According to an announcement by Stripe, creators on Twitter can now receive payments in crypto. Twitter already uses the Connect feature to pay creators on the platform from Twitter’s monetization products. This includes the Super Follows and Ticketed Spaces. By adding crypto payouts on Connect, Twitter will make it possible for creators to receive earnings in a crypto wallet. Stripe will handle the KYC, and adapt as crypto regulations evolve around the world.
Under this arrangement, Stripe will handle all the crypto operations. There is no change to the code needed, and platforms can avoid taking on the challenges of holding and managing crypto when they use the Stripe Connect product. These payments will be received in USD coin (USDC), which is a stable coin pegged to the value of the US dollar. Doing so will make it possible for people in various regions of the world where they would not be able to hold dollars to do so. With time, the company plans to add the payout currencies and supported rails.
Besides being able to receive earnings to their crypto wallets running on the Polygon network, users that receive crypto payments will also be able to exchange them for other currencies. Stripe had ditched crypto payments in 2018, specifically Bitcoin. At the time, the company stated that the high volatility of BTC was the main reason it had abandoned crypto. However, the company has recently reconsidered that decision and is now teaming up with various players in the crypto sector to support crypto payments.
Why This Matters
Introducing crypto wallets to Twitter could help broaden the reach of the crypto sector. As of now, the microblogging site remains one of the most popular social media platforms used by millennials. Adding a crypto payment could serve as a great way to introduce them to the crypto industry.
As more people learn about the sector and see it work in the real world, it could inspire some of them to come up with new use cases for crypto. It could also inspire them to be more willing to accept crypto payments due to their inherent advantages over other payment methods. For instance, USDC payments over the Polygon network can be many times cheaper compared to using the normal fiat payment methods, where users can end up losing up to 10% of the entire transaction in fees.
Using USDC is a great option. Its price is pegged to the USD, which makes it quite stable compared to other crypto coins such as Bitcoin. As a result, those who opt to receive payment in USDC will be able to track payments over time, just like they would if they were in USD.
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