Twitter to allow crypto payments, backed by Stripe

The payouts are initially expected to be rolled out with USDC, with more cryptocurrencies being added over time

By Shashank Bhardwaj

Image: Shutterstock

American microblogging and social networking service company Twitter is reportedly teaming up with Stripe, an online payments company, to allow merchants to pay their customers in cryptocurrencies.

Stripe will only accept payments in USD Coin (USDC), a stablecoin pegged to the US dollar, for the time being. “This will enable many people who wouldn’t otherwise be able to hold dollars to do so,” says Stripe. Payouts are expected to take place on the Polygon network because of its low fees, Ethereum integration, and broad wallet compatibility that covers MetaMask, Coinbase Wallet, and Rainbow.

Twitter will be the first merchant to make use of Stripe's new payment option, allowing certain users to collect earnings in USDC. Given that Twitter's focus on creators has mostly been on how to give creators methods to monetise services that the social media firm already provides to all users, the addition of crypto payments is an interesting move that could indicate how the company is altering its monetisation strategies. Currently, some of the creator monetisation services on Twitter include Super Follows, ticketed Space Events, Tips, etc.

Stripe's latest move also highlights the company's renewed interest in cryptocurrencies. Stripe had discontinued accepting Bitcoin payments in January 2018, claiming that the token's volatility and inefficiency rendered it unsuitable for ordinary transactions. The company, however, announced in October 2021 that it would be re-entering the cryptocurrency sector and began hiring crypto talent. Because USDC is pegged to the US dollar, it is ideal for use as a cryptocurrency with greater price stability than Bitcoin and other digital currencies.

“Once creators receive their earnings, they can hold their balance on Polygon, or choose to bridge to Ethereum and exchange it into another currency,” Stripe says. Stripe also plans to support other cryptocurrencies beyond USD Coin by the end of 2022, allowing crypto payments in more than 120 countries.

Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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