Paxos is bringing a stablecoin platform to increase stablecoin acceptance among merchants with features like instant fiat settlements at their end for stablecoin transactions from customers.
Stablecoin issuer Paxos is paving its own way to increase the adoption witnessed by the asset type. It has launched a payments platform aimed at enterprises to make stablecoin payments effortless. The platform will come with features like stablecoin to fiat conversion for receivers during settlements, which will undoubtedly attract many merchants to the platform.
However, Paxos will not work with merchants directly. Rather, it will collaborate with payment service providers (PSPs), with Stripe becoming the first to hop on. PSPs, with their huge networks of merchants, will be able to bring Paxos’ platform to enterprises looking to utilize approaches that massively reduce fees and bring instant settlements.
The Stripe collaboration puts Paxos in touch with the payment firm’s Pay with Crypto product—a platform Stripe is bringing with its own stablecoin implementation. Pay with Crypto also comes with features like stablecoin to fiat conversion during settlements.
“Adoption and utility will continue to grow as enterprises recognize how stablecoins provide instant, safe and low-cost settlement globally; all meaningful improvements relative to legacy payment rails,” said Ronak Daya, Head of Product at Paxos. “Our new stablecoin payments offering gives enterprises the infrastructure to onboard clients, power pay-ins and payouts and move money globally.” Stripe’s Crypto Head, John Egan, mentioned, “Partnering with Paxos, we’re excited to enable stablecoin payments for our users with our Pay with Crypto product.”
Paxos’ new platform will come with APIs that interested PSPs can plug into to bring stablecoin access to their users. The issuer supports USD conversion for three stablecoins at the moment—Paxos USD (USDP), Circle (USDC), and PayPal USD (PyUSD). PUSD and PyUSD will be supported on the Ethereum and Solana blockchains, while USDC will be supported across Ethereum, Solana, and Polygon.
These assets can be utilized for payments, payouts, and refunds. An impressive feature includes merchant refunds when the payee uses stablecoin, and the merchant receives it in fiat. The platform would accept fiat from the merchant’s end, convert it to stablecoin, and settle the refund in the payee’s wallet.
Stripe’s Stablecoin Product Witnessed Impressive Day One Usage
With launch, the platform is available in the United States but is expected to grow to other countries soon. Stablecoins will be converted to local currencies based on the country the platform is utilized in, or merchants and payees can continue transacting in dollars. Stripe, for instance, is looking to gain global traction with its Pay with Crypto platform. Its first day of launch this month saw users from 70 countries harness it to transact stablecoins.
