Coinbase Opens USDC Payments for Merchants

Coinbase Commerce USDC payments global roll-out cryptocurrency

Leading wallet and exchange service Coinbase is allowing merchants to accept payment in USDC for the first time, through its merchant payment service Coinbase Commerce.

The news means merchants are now able to receive money in USDC, the dollar-pegged USD Coin. Payments can be sent in a matter of minutes, with no transaction fees or chargebacks, allowing retailers to take full advantage of the benefits of crypto payment technology.

The service also allows for more efficient cross-border payments, as well as support for payments in a basket of major cryptocurrencies, including BTC, BCH, ETH and LTC.

According to a statement from the firm, support for USDC will allow merchants to circumvent the need for traditional banking support.

“Unlike accepting credit card payments, merchants can accept USD Coin without geographical limitations or the need for a traditional bank account.”

Coinbase Commerce was first introduced with a Shopify integration for e-commerce payments, before later being rolled out into a WooCommerce integration. Coinbase Commerce said the link with WooCommerce would allow them to access the up to 28 percent of all web stores running payments through the platform.

USDC was created as the result of a joint venture between Coinbase and Circle, with the stablecoin now available for use in some 85 countries around the world, via the Coinbase service.

The firm said the expansive global roll-out would help merchants in countries where inflation is expected to run in the double digits in the coming years.

“For new customers in countries like Argentina and Uzbekistan, where consumer prices are expected to inflate by 10-20% in 2020, stablecoins like USDC could provide an opportunity to protect against inflation.”

As a market leader in the cryptocurrency space, the support from Coinbase is likely to introduce a significant volume of merchants globally to the idea of transacting in the stablecoin, which is designed to keep parity with the U.S. dollar, as a proxy for fiat payments.

With the service now available to a larger number of merchants than ever before, it remains to be seen whether accepting payments in USDC becomes the preferred route for retailers running a Coinbase Commerce integration.