Coinbase is expanding into the global payments sector with its recent launch of Coinbase Payments. Announced via a blog post, this service operates on the Ethereum layer-2 network Base and has already gone live with Shopify, a popular e-commerce platform. The core idea of Coinbase Payments is to enable merchants to accept USDC payments on a 24/7 basis, all while eliminating the need for merchants to understand the underlying blockchain technology.
In response to this announcement, Coinbase shares increased by 16%, while Circle, the issuer of USDC, saw a significant 25% rise in value. This move reflects the broader trend of stablecoins, which are increasingly being utilized to reform the global payments system, especially as major payment companies like Stripe and PayPal explore blockchain technology in their services.
During the past year, stablecoins facilitated a staggering $30 trillion in transactions, marking a tripling of volume compared to the previous year. Coinbase Payments integrates three components: Stablecoin Checkout, which allows users to pay via wallets like MetaMask and Coinbase Wallet; the Ecommerce Engine, which provides APIs for essential functions such as refunds; and the Commerce Payments Protocol that processes transactions through smart contracts.
This setup allows merchants to accept USDC from international clients anytime, without extensive setup, while minimizing transaction fees. According to Coinbase, their tools aim to replicate traditional payment experiences, including settlement and billing, while leveraging on-chain methods for quicker operations.
In response to this announcement, Coinbase shares increased by 16%, while Circle, the issuer of USDC, saw a significant 25% rise in value. This move reflects the broader trend of stablecoins, which are increasingly being utilized to reform the global payments system, especially as major payment companies like Stripe and PayPal explore blockchain technology in their services.
During the past year, stablecoins facilitated a staggering $30 trillion in transactions, marking a tripling of volume compared to the previous year. Coinbase Payments integrates three components: Stablecoin Checkout, which allows users to pay via wallets like MetaMask and Coinbase Wallet; the Ecommerce Engine, which provides APIs for essential functions such as refunds; and the Commerce Payments Protocol that processes transactions through smart contracts.
This setup allows merchants to accept USDC from international clients anytime, without extensive setup, while minimizing transaction fees. According to Coinbase, their tools aim to replicate traditional payment experiences, including settlement and billing, while leveraging on-chain methods for quicker operations.
