Paxos Expands Stablecoin Adoption in the Payments Industry, Strikes Partnership with Stripe

Paxos, the blockchain firm behind Pax Dollar (USDP), is expanding stablecoin adoption in the payments industry with the launch of its new enterprise-grade stablecoin payments platform.

Pax Dollar (USDP) issuer Paxos is expanding stablecoin adoption in the payments industry with the launch of its new enterprise-grade stablecoin payments platform.

The platform is designed for payment service providers (PSPs) and fintech companies, enabling them to integrate stablecoin payments into their systems for faster and lower-cost global transactions.

Paxos has announced that payment processing giant Stripe will be the first PSP to integrate Paxos’ infrastructure. Stripe's “Pay with Crypto” product, which allows businesses to accept stablecoin payments, will feature Paxos' technology, enabling these payments to settle in fiat currencies like the U.S. dollar.

"We're always looking for methods to make it easier and less expensive for businesses to accept payments from their customers worldwide. We're thrilled to partner with Paxos to enable stablecoin payments for our users with our Pay with Crypto product," said John Egan, Head of Crypto at Stripe.

The new Paxos platform offers an API infrastructure that allows payments to be made in either stablecoins or fiat. The platform supports conversions between the U.S. dollar and three stablecoins: Pax Dollar (USDP), PayPal USD (PYUSD), and Circle's USD Coin (USDC). It will initially be available in the U.S., with plans to expand to additional currencies and regions over time.

Customers must set up a wallet with Paxos to use the platform, and merchants or PSPs can choose whether to receive stablecoins directly or convert them to fiat. The platform also supports on-chain transfers via the Solana and Ethereum networks for PYUSD and USDP, respectively, while USDC is supported via Ethereum, Solana, and Polygon.

Merchants will also be able to issue refunds in the same stablecoin that was used for the initial payment.

Stripe currently accepts pay-ins from over 70 countries, and the addition of stablecoin payments will allow businesses to accept payments from anywhere in the world.

“This is truly enterprise-grade infrastructure for payments, where Paxos brings our regulatory-first approach to the payment capabilities needed across onboarding, custody, and money movement,” a Paxos representative stated. Paxos also intends to add more assets and blockchain networks to the platform based on customer demand.

The stablecoin market has experienced rapid growth, reaching a total market value of over $170 billion in September 2024. Major players in the space include Tether (USDT), Circle (USDC), and PayPal (PYUSD).