Stripe Expands Fiat-to-Crypto On-Ramp for Web3

Financial infrastructure firm Stripe has announced expanded access to its crypto on-ramp by introducing a new hosted option for Web3 companies, making it easier for US-based customers to purchase cryptocurrencies.

The fintech firm has been actively expanding its initiatives in the crypto and Web3 space to provide better financial infrastructure for businesses and facilitate the adoption of cryptocurrencies and blockchain-enabled experiences. The fiat-to-crypto on-ramp service is designed to address the "cold start problem" faced by Web3 companies, which refers to the initial barrier faced by companies offering cryptocurrency and blockchain-enabled services when their customers do not have the required cryptocurrencies in their wallets to carry out transactions.

Such an issue often arises because many potential users are unfamiliar with cryptocurrencies or do not possess any at the time they want to engage with Web3 services. Consequently, these users may find it challenging to start using the services, which in turn, hinders the adoption and growth of the Web3 ecosystem. The new hosted fiat-to-crypto on-ramp addresses this challenge by allowing customers to purchase cryptocurrencies at the exact moment they need them, streamlining the process of acquiring and using cryptocurrencies for Web3 services.

This on-ramp allows U.S. customers to purchase crypto at the exact moment they need it, with two implementation options: an embeddable on-ramp that can be integrated into a website or app, and a Stripe-hosted on-ramp at crypto.link.com, available to all Web3 users. Stripe's on-ramp is designed to optimize conversion and authorization rates while ensuring compliance with KYC and regulatory requirements. The platform includes built-in fraud tools and identity verification to support companies in meeting these requirements.

Stripe's infrastructure simplifies growth for businesses by enabling them to accept fiat globally, facilitate easy payouts with crypto (USDC), lower fraud, and ensure smooth onboarding. The company has partnered with various Web3 companies, including Brave, Safe, 1inch, and Lens Protocol, to integrate its fiat-to-crypto on-ramp, allowing them to focus on their core offerings while Stripe handles critical tasks.

Guillaume Poncin, head of engineering for crypto at Stripe, stated that the on-ramp would handle various compliance-related tasks, such as conversion and authorization optimization, identity verification, and fraud prevention. Poncin claims that this will help customers use Web3 services quickly and safely by providing built-in fraud detection and identity verification tools have also been implemented to support companies in meeting Know Your Customer (KYC) and compliance requirements.

The new fiat-to-crypto on-ramp offers a seamless and efficient solution for Web3 companies, allowing platforms to integrate for free while users cover the fees. With just a few lines of code, the on-ramp provides real-time quotes, automated KYC, and multi-chain support. It also features an embeddable widget that can be customized to match a company's brand. The on-ramp supports various payment methods, such as credit, debit, ACH, and Google Pay, and offers an array of cryptocurrencies like ETH, SOL, MATIC, BTC, and USDC on different networks.

Notably, platforms have no fraud liability as Stripe handles all disputes and offers webhook generation for every status change within a session. Returning users may benefit from a 1-click checkout with Link, Stripe's consumer account infrastructure. This innovative solution is currently available in the US, excluding Hawaii, with certain limitations on specific currencies in New York and live mode only for MATIC, USDC (Solana), and USDC (Polygon).

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.