The news: Stripe introduced a fiat-to-crypto payment solution that makes it easier for consumers to purchase cryptocurrencies without having to go through a crypto exchange, per a press release.
Web3 sites—like nonfungible token (NFT) platforms and decentralized exchanges—can embed Stripe’s fiat-to-crypto widget into their tech stack to facilitate purchases. The service will be available to US customers before expanding over time.
Key context: Consumers often need cryptos to purchase NFTs or interact with other web3 services. That means signing up with a crypto exchange—which requires jumping through know-your-customer (KYC) hoops—purchasing cryptos, and then transferring them to a noncustodial wallet.
Stripe’s fiat-to-crypto widget avoids the exchange-to-wallet process. Stripe will handle KYC and other compliance procedures, fraud protection, and payments.
Why it’s worth watching: Stripe appears unperturbed by the widespread turmoil in the crypto sector.
The fact that Stripe is willing to invest in a crypto offering despite recent cost-cutting efforts showcases its belief that there’s enough demand to generate strong revenues. It laid off 14% of its staff last month, citing tough economic conditions. It also said it would reduce investments to match the current economic environment.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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