This new transaction solution from Stripe takes on the form of a widget that can be integrated with various DeFi platforms. Stripe’s decision to move further into the crypto market could help DeFi become more accessible to mainstream consumers at a time when centralized exchanges are under the microscope.
The mainstream way to on-ramp fiat-to-crypto today is to purchase cryptocurrencies through a centralized exchange such as Binance, Coinbase, and Kraken. To leverage DeFi, users need to transfer the purchased cryptocurrencies to third-party wallets.
Stripe officials cited by blockworks.co highlighted the difficulty of getting users ‘on-chain’ or to fund their wallets with the crypto required to interface with Web3 applications as developers need to navigate complex KYC requirements and tackle fraud while providing a high-conversion payments experience. As such, Stripe revealed that it would handle KYC requirements, payments, fraud, and compliance.
According to the same source, entities such as NFT marketplace Magic Eden, social NFT platform Nifty’s, and decentralized exchange Orca already partner with Stripe for fiat-to-crypto on-ramp services. Stripe’s new fiat-to-crypto on-ramp will only be available for US customers for the time being, and it will place the company in competition with non-custodial exchanges such as Kado, which launched a Terra UST native on-ramp that supports transfers from bank accounts directly to wallets in a few minutes.
In September 2022, Stripe has partnered with Germany-based hospitality software provider Sides. Through this partnership, Sides planned to add a secure payment platform to its software and thus enable a comprehensive shopping experience. The all-in-one catering software offers cashless payment processing in restaurants, online shops, and in the app.
With the new payment solution, restaurant operators can provide different payment methods in their restaurants or online, address more customers, and improve their sales in the long term. Cashless payments can be firmly incorporated into the software thanks to Stripe's white-label integration.
In the same month, Stripe also partnered with La Redoute to facilitate and improve the payment experience of its customers. The new system that resulted from this partnership includes the acceptance of all types of bank cards in digital wallets (ApplePay, GooglePay), Bancontact in Belgium, and iDeal in the Netherlands. In France, La Redoute will rely on an advanced integration between Stripe and the Cartes Bancaires network, which allows frictionless onboarding for global merchants.
Stripe’s payments stack allows La Redoute to streamline its operations in France and across its international markets, which account for 30% of its business.
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