Paxos Partners with Stripe to Revolutionize Stablecoin Payments

Paxos is taking strides to increase stablecoin use in the payment sector with a robust new platform aimed at payment service providers (PSPs) and fintech companies.

Recently, Paxos revealed its collaboration with Stripe, which will integrate this platform into its Pay with Crypto feature, enabling users to facilitate stablecoin transactions while converting them into fiat currencies like the U.S. dollar.

The new infrastructure includes an API designed to enhance the speed and reduce the costs of international payments compared to conventional methods. A spokesperson emphasized that the primary focus is on PSPs and fintechs, allowing them to incorporate this technology rather than targeting individual merchants directly.

To access the service, users must create a wallet with Paxos, enabling them to decide whether to accept stablecoins or convert them into fiat currency.

At launch, the platform will support exchanges between the U.S. dollar and three stablecoins: Pax Dollar (USDP), PayPal USD (PYUSD), and Circle’s USD Coin (USDC). While it starts in the U.S., Paxos plans to extend its services internationally.

Once businesses are set up, they can accept payments globally. Customers have the option to convert stablecoin payments to fiat or transfer them directly to merchants, who can issue refunds by converting fiat back into the original stablecoin.

Paxos positions this technology as a significant leap in payment capabilities while adhering to regulatory standards. With the stablecoin market recently exceeding $170 billion, Paxos is dedicated to continuously adding new assets and platforms in response to customer needs.