Dollar-backed stablecoin USDC is now integrated into Coinbase Commerce, an app that facilitates merchant payments. The Coinbase-owned payment service is also integrated in major e-commerce platforms like Shopify and WooCommerce. Potentially thousands of online retailers can now accept and use USDC.
The benefit of accepting cryptocurrencies for online shops is that there are no chargebacks. However, accepting bitcoin can bring relatively high transaction fees and price volatility with it. USDC doesn’t have that, as transactions are free and the token is always worth one dollar.
Cryptocurrencies also are a way for retailers to accept payments without having a bank account. Shop owners are their own bank. They can make an account, keep control over their own wallets, and be the boss of their own money.
In the past some online shops have ditched cryptocurrency payments because of the high transaction fees and price volatility. Even though the price of crypto will still change quite heavily, transaction fees are becoming more steady. Projects like Litecoin, Bitcoin Cash and even Bitcoin with the Lightning Network, are improving the way transactions are being handled and how much these transactions will cost.
Coinbase opened up trading in USDC earlier this month. The company made trading in the dollar-pegged token available to another 85 countries. Currently there are over 300 million USDC tokens in circulation.
Also published on Medium.