Global e-commerce leader Shopify has begun rolling out early access to stablecoin payments using Circle’s USDC, in partnership with major U.S. exchange Coinbase.
The company announced Thursday that USDC payments will be fully launched later this year through Shopify Payments and Shop Pay, utilizing Coinbase’s Ethereum layer-2 network, Base.
“Stablecoins are a natural fit for online transactions,” Shopify CEO Tobi Lutke said in a post on X, adding that the company collaborated with Coinbase to develop the smart contract behind the commerce payment protocol enabling this feature.
Shopify’s new stablecoin payment feature will also enable the company to introduce buyer incentives in the future, such as 1% cash back in local currency, according to the CEO.
Shopify Integrates Base for Payment Processing
According to data from USDC Transparency and CoinGecko, Coinbase’s Base blockchain is now the fourth-largest network for USDC, with USDC issued on Base making up 6% of the stablecoin’s total $61 billion supply.
Developed by Coinbase, Base is described by Shopify as an “ultra-fast and affordable network” that has become an ideal solution for transferring money. Shopify highlighted Base’s ability to deliver “fast, cheap, and secure transactions,” while also offering a 24/7 global payment infrastructure.
Shopify has not clarified whether it plans to expand support to other USDC-compatible blockchains or additional crypto assets and stablecoins, prompting curiosity and debate among online observers about the decision to start with Base.
“What’s the point of narrowing your top of the funnel? You should support all chains that Stripe via USDC supports,” one user commented on X.
Shopify Has Offered Indirect Bitcoin Support Since 2013
Shopify’s new USDC partnership with Coinbase isn’t its first foray into crypto.
The company has been indirectly supporting Bitcoin payments since at least 2013, when it announced that all 75,000 of its merchants could begin accepting Bitcoin through third-party payment gateway integrations.
According to the Shopify Help Center, merchants can integrate at least nine additional cryptocurrency payment methods through third-party gateways such as BitPay, Solana Pay, and others, supporting a wide range of digital assets.
However, the Help Center cautions that “cryptocurrency transactions can cause overselling in flash sales due to longer settlement times,” and recommends using direct payment options like Shopify Payments for optimal performance during high-traffic events.
Shopify’s latest partnership with Coinbase isn’t their first collaboration in the crypto space. In 2019 and 2020, both companies participated in Meta’s (formerly Facebook’s) stablecoin initiative, Diem—originally known as Libra. The project was eventually shut down in early 2022 after facing years of regulatory hurdles worldwide.
