Paxos launched a stablecoin payments platform, with Stripe as the first to integrate, allowing users to accept stablecoin payments that settle in fiat currencies.
Through the implementation of its brand-new enterprise-grade infrastructure, Paxos, the blockchain company that is responsible for the Pax Dollar stablecoin, is working to increase the use of stablecoins in the payments industry.
Paxos has launched a new stablecoin payments platform with the intention of catering to payment service providers (PSP) and fintech organizations who are interested in enabling stablecoin payments. They announced on October 15th that Stripe, a global payment processing company, will be the first payment service provider (PSP) to integrate Paxos’ infrastructure into its system.
Stripe’s Pay with Crypto offering will feature infrastructure that allows users to accept stablecoin payments that settle in fiat currencies like the United States dollar. Paxos has introduced a new stablecoin payment platform. This platform provides an application programming interface (API) architecture with the objective of facilitating global payments that are both more expedient and less expensive than traditional payment methods.
According to a statement made by a spokesman for Paxos, “We are currently focused on PSPs, fintechs, and other providers who will be embedding this infrastructure into their systems.” This emphasizes that Paxos is not concerned with individual merchant outreach.
Therefore, they leave the specific merchant requirements up to each individual provider. Customers must create a wallet using Paxos in order to access the platform. When this occurs, merchants and PSPs have the option of either receiving stablecoins or converting payments to fiat currency by utilizing its transactions.
Paxos’ stablecoin platform supports conversions between the US dollar and three stablecoins at the time of its inception. These stablecoins include Pax Dollar, PayPal USD, and Circle’s USD Coin. At the moment, the platform is accessible in the United States, and they intends to expand its operations beyond the United States dollar in the future.
A Paxos representative said in an interview that once the system is in place, businesses will be able to accept payments from anywhere, underscoring the global reach of this project. The representative from Stripe mentioned that the company already allows pay-ins from more than 70 countries.
Users have the option of either converting the funds to fiat currency or sending stablecoins straight to merchants once they have received a payment in stablecoin. Merchants will be able to convert fiat currency into the initially used stablecoin and then transfer the converted fiat currency directly to the wallet that made the initial payment, thanks to the ability to give refunds.
This method allows for on-chain transfers of the PYUSD and USDP cryptocurrencies through the Solana and Ethereum networks and transfers of the USDC cryptocurrency across Ethereum, Solana, and Polygon.”This is truly enterprise-grade infrastructure for payments,” Paxos said”.
They brings our regulatory-first approach to the payment capabilities needed across onboarding, custody, and money movement.” Paxos is a payment processing company. In September, the entire market value of all stablecoins surpassed $170 billion, indicating that the stablecoin business has grown significantly over the course of the past few years.
Tether, the company that operates the most prominent stablecoin, USDt, reported a record-breaking profit of $5.2 billion during the first half of 2024. Additionally, other companies in the market developed new stablecoins and solutions related to them. According to them, there should be an appropriate quantity of stablecoins available on the international market. According to the company’s spokesperson,
“Without respect to the right number, our goal is to keep adding assets and chains over time based on customers’ interests and their own end-user’s preferences.”
