Stripe Tests New Crypto Payments Product Using Twitter and Polygon

April 26, 2022, 9:45 AM AEST - 1 month ago

Global payment processing giant Stripe has introduced crypto payouts to its Stripe Connect service, partnering with Twitter to pilot the technology before expanding it to other platforms in coming weeks.

The pilot will allow select creators who use Twitter’s monetisation features – such as Ticketed Spaces and Super Follows – to be paid for their content and receive their payouts in crypto via the Polygon network. Stripe has chosen to use the Ethereum scaling solution as the first network to process its crypto payments because of its “low fees, high speed, integration with Ethereum and broad wallet compatibility”.

Initially, Stripe will only support payments in the USDC stablecoin, but this will presumably expand in future as the technology matures and grows beyond Twitter.

Aim is to Streamline Traditional Payment Systems

In the announcement, Stripe’s product manager of crypto, Karan Sharma, cited the complexity and heterogeneity of traditional payment systems as a key factor in the decision to integrate crypto payments into Stripe Connect:

While we are continuously expanding our geographic coverage, many countries remain out of reach in part due to the intrinsic complexity involved in supporting heterogeneous local payments systems. Unfortunately, this makes participation in the online economy harder for many of those who stand to benefit most.

Karan Sharma, Stripe product manager, crypto

Stripe to Handle ‘Crypto-Related Complexity’

Twitter already uses Stripe Connect to handle payouts to creators, so the addition of crypto payments should be smooth. 

Stripe will handle all the “crypto-related complexity and operations” and no code changes will be required by Twitter. Nor will it have to worry about acquiring, storing or transferring crypto – Stripe will handle all of these functions. In addition, Stripe will perform all the required Know Your Customer (KYC) checks.

Stripe plans to support crypto payouts via Stripe Connect in more than 120 countries by the end of 2022.

Twitter Expands Range of Payments

Twitter is enthusiastic about offering creators more payment options and potentially expanding the range of users who can take advantage of its monetisation products:

As the Elon Musk takeover is now confirmed, this news marks the latest move by Twitter towards greater crypto adoption, having already rolled out Bitcoin tipping and Ethereum tipping for creators in the past few months.

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