Shopify has announced plans to introduce stablecoin payments across its platform later this year in collaboration with US-based crypto exchange Coinbase and financial services firm Stripe, marking its most ambitious foray into the crypto space to date.
Coinbase Executive Predicts Ripple Effects
According to a report by Fortune, this initiative will allow merchants—from vintage clothing sellers to electronics retailers—to accept payments in USDC, a stablecoin issued by Circle, which has recently garnered attention following its successful initial public offering (IPO) in the US.
Beginning in late June, Shopify will initially enable a select group of users to integrate USDC payments. Following this pilot phase, the platform will gradually expand access to merchants throughout the US and Europe, ultimately making stablecoin payments available to all users.
Tobias Lütke, Shopify’s CEO and a board member of Coinbase, expressed the company’s alignment with the principles of cryptocurrency during a recent Coinbase conference. “In our own philosophical framework, we are extremely aligned with everything that crypto stands for,” he stated.
To facilitate this integration, Shopify partnered with Coinbase to develop a payments protocol designed to manage essential retail functions such as chargebacks and refunds on Coinbase’s blockchain platform, Base.
Additionally, the company collaborated with fintech giant Stripe, one of its primary payment processors, to seamlessly incorporate stablecoins into its existing software ecosystem.
Jesse Pollak, a Coinbase executive overseeing the exchange’s wallet and blockchain divisions, remarked on the potential ripple effects of Shopify’s stablecoin initiative.
“I think other payment processors will look at what Shopify is building and be like, ‘Holy crap,’” he noted, highlighting the significance of this development in the broader payments landscape.
Major Tech Firms Explore Stablecoin Integration
Shopify’s entry into the stablecoin arena comes at a time when these cryptocurrencies—pegged to stable assets like the US dollar—are gaining traction in Silicon Valley, emerging as a compelling alternative to traditional financial transactions.
Advocates argue that stablecoins can significantly reduce cross-border transfer fees and expedite transaction times, moving away from the delays associated with conventional bank wires.
Major tech players, including Meta, Apple, X (formerly Twitter), Airbnb, and Google, are increasingly exploring stablecoin integrations, reflecting a growing interest in the sector.
Notably, Stripe’s acquisition of two crypto startups in the past year further underscores the fintech’s commitment to establishing its own strategy in the crypto payments arena.
“This will be the beginning of a lot of dominoes falling,” Pollak remarked, emphasizing the potential for widespread adoption of stablecoin payments following Shopify’s lead.
While this is not Shopify’s first venture into cryptocurrency—previously allowing third-party developers like Crypto.com and Strike to offer plugins for crypto payments—this latest move represents a significant shift.
Unlike prior integrations that were optional for merchants, the upcoming stablecoin payments will be opt-out, requiring merchants to adjust their settings if they choose not to accept USDC.
Featured image from DALL-E, chart from TradingView.com
