Crypto as a method of payment has just gotten easier. Coinbase Commerce has expanded to include USD Coin as a settlement option, allowing merchants to accept crypto without transaction fees, chargebacks, or price volatility.
Coinbase Commerce, an app launched last year to facilitate merchant payments, now accepts Coinbase’s native USD Coin(USDC). The stablecoin was the result of a partnership between Circle and Coinbase in October of 2018.
The update represents a stride for crypto as a medium-of-exchange. Bitcoin, as the pioneer cryptocurrency, has relatively high fees and long transaction confirmation times. Meanwhile, the fiat-backed USD Coin allows merchants to get the benefits of crypto without the drawbacks.
Additionally, payments conducted in USD Coin have zero transactions fees and do not expose merchants to costly chargebacks. Unlike credit cards, merchants can accept USDC without a traditional bank account anywhere in the world.
Vendors have full custody over these funds and can accept payments directly to a wallet they control.
USDC is directly integrated into Coinbase and Coinbase Pro, allowing users to instantly convert between fiat and USD Coin. Coinbase Commerce is also integrated with other popular e-commerce platforms, such as Spotify and WooCommerce, making implementation within reach of hundreds of thousands of online merchants.
The move is another milestone for crypto as a method of payment. Previously, the cost or lack of interest caused merchants such as Steam and Twitch to reverse their decisions on accepting crypto.
However, the technology around payments improved drastically and projects such as Ethereum, Litecoin, Bitcoin Cash, and XRP are able to transmit payments via blockchain with much lower fees. As crypto as a mechanism of payment improves it is expected that adoption will follow.