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A collaboration between payment processing giant Stripe and Crypto.com could foreshadow more moves by payment processors to let consumers pay with cryptocurrencies, according to industry consultants.
But they caution the speed of cryptocurrency adoption will depend largely on consumer interest.
The partnership announced on Tuesday means that users of the Singapore-based cryptocurrency platform — which lets users trade digital assets and pay with cryptocurrencies — will be able to start using their crypto balances this month to pay online at some of Stripe’s merchant clients.
The announcement by Stripe, which has dual headquarters in Dublin and San Francisco, follows a similar move by digital payments company Block late last year.
Oakland, California-based Block announced in November that it had added a Bitcoin map to its Cash App service that lets users find merchants that accept the digital asset, and introduced a feature that lets Cash App users convert dollars to Bitcoin.
“We will see more processors add crypto-funded checkout, especially with stablecoins,” said Josh Istas, head of product for the consulting firm The Strawhecker Group, referring to a type of cryptocurrency tied to the value of a stable asset, such as fiat currency.
Processors like Stripe are eager to give their clients more payment options, said Tony DeSanctis, a senior director at the bank consulting firm Cornerstone Advisors.
“Stripe will continue to build out payment capabilities across as many platforms as possible,” he said. “Their economics are all based on transactions so the more types and volumes of transactions they can facilitate, the better it is for them.”
Although DeSanctis cautioned that the level of consumer demand for cryptocurrency payments remains an open question.
“What is unclear is how many folks want or need to make payments directly with crypto,” he said.
The payments industry is slowly embracing the use of digital currencies. For example, companies like Fiserv and Klarna Group plan to introduce their own stablecoins. Stripe said in October that it would begin letting customers pay for subscriptions with stablecoins.
Rising interest in digital currencies likely has been driven partly by the passage of the Genius Act, which President Donald Trump signed into law in July to create a regulatory framework for use of stablecoins.
Fewer payments companies, however, have delved into more volatile digital assets, like Bitcoin, the value of which is constantly shifting.
Still, cryptocurrency payments may reduce costs for companies like Stripe and their merchant customers, said Richard Crone, an industry consultant based in San Francisco.
“They can save substantially by (steering consumers) toward crypto and bypassing interchange fees,” he said.