Paxos, the blockchain firm behind Pax Dollar (USDP), is expanding stablecoin adoption in the payments industry with the launch of its new enterprise-grade stablecoin payments platform.
The platform targets payment service providers (PSPs) and fintech companies, offering them the ability to integrate stablecoin payments into their systems for faster and lower-cost global transactions.
Paxos announced that payment processing giant Stripe will be the first PSP to integrate Paxos’ infrastructure. Stripe’s “Pay with Crypto” product, which enables businesses to accept stablecoin payments, will feature Paxos’ technology, allowing these payments to settle in fiat currencies such as the U.S. dollar.
“We’re always looking for ways to make it easier and cheaper for businesses to accept payments from their customers worldwide. Partnering with Paxos, we’re excited to enable stablecoin payments for our users with our Pay with Crypto product,” said John Egan, Stripe’s Head of Crypto.
The new Paxos platform provides an API infrastructure that enables payments in stablecoins or fiat. The platform supports conversions between the U.S. dollar and three stablecoins: Pax Dollar (USDP), PayPal USD (PYUSD), and Circle’s USD Coin (USDC). At launch, it will be available in the U.S., with plans to expand to additional currencies and regions over time.
To use the platform, customers must set up a wallet with Paxos, and merchants or PSPs can choose whether to receive stablecoins directly or convert them to fiat. The platform also supports on-chain transfers via the Solana and Ethereum networks for PYUSD and USDP, while USDC is supported via Ethereum, Solana, and Polygon.
Stripe and Paxos partnership
Merchants will also be able to issue refunds in the same stablecoin used for the initial payment.
Stripe already supports pay-ins from over 70 countries, and the inclusion of stablecoin payments will enable businesses to accept payments from anywhere globally.
“This is truly enterprise-grade infrastructure for payments, where Paxos brings our regulatory-first approach to the payment capabilities needed across onboarding, custody, and money movement,” a Paxos representative said. Paxos also plans to continue adding more assets and blockchain networks to the platform based on customer demand.
The stablecoin market has seen rapid growth, with a total market value surpassing $170 billion in September 2024. Major players like Tether (USDT), Circle (USDC), and PayPal (PYUSD) continue to dominate the space.
