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Internet payment processor Stripe has introduced a fiat-to-crypto on-ramp to address the \u201ccold start problem\u201d faced by Web3 companies due to customers not having \u201ccrypto in their wallets to carry out transactions.\u201d<\/p>\n
According<\/a> to a May 4 statement, Stripe\u2019s newly launched fiat-to-crypto on-ramp, which Stripe itself will host, will allow Web3 companies to offer United States-based customers the ability to purchase crypto \u201cat the precise moment they need it\u201d without the need to embed any code into a website or app.<\/p>\n Instead, customers will be directed to a link to convert their fiat into crypto.<\/p>\n Guillaume Poncin, head of engineering for crypto at Stripe, said Stripe would handle several compliance-related tasks for Web3 companies using the on-ramp, including conversion and authorization optimization, identity verification and fraud prevention, to help \u201ccustomers start using Web3 services quickly and safely.\u201c<\/p>\n It was noted that built-in fraud detection and identity verification tools were implemented to support companies in meeting Know Your Customer and compliance requirements.<\/p>\n We\u2019re introducing a Stripe-hosted fiat-to-crypto onramp (no code required) and unlocking the waitlist for the embeddable onramp. https:\/\/t.co\/U9OW2cjFrZ<\/a> pic.twitter.com\/jjmkDUiOqc<\/a><\/p>\n \u2014 Stripe (@stripe) May 4, 2023<\/a><\/p><\/blockquote>\n Implementing the new on-ramp service aims to support Web3 companies by providing a user-friendly way for customers to top up their crypto wallets. It stated:\u00a0<\/p>\n \u201cCompanies interested in offering cryptocurrency and blockchain-enabled experiences often face a cold start problem: Their customers don\u2019t have the crypto in their wallets to carry out transactions.\u201d<\/p><\/blockquote>\n Several Web3 companies, including privacy-focused browser Brave, decentralized finance protocol 1inch and blockchain protocol Lens Protocol, have already implemented Stripe\u2019s fiat-to-crypto on-ramp, according to the statement.<\/p>\n James Mudgett, vice president of Web3 products at Brave, stated that the service will allow the platform to \u201creach new Web3 users.\u201d<\/p>\n Meanwhile, 1inch co-founder Sergei Kunz highlighted the importance of building \u201cbridges between Web2 and Web3,\u201d adding that Stripe\u2019s experience with Web3 companies makes it \u201cwell positioned to help.\u201c<\/p>\n Related:\u00a0<\/em><\/strong>Crypto-friendly Stripe weighs public offering: Report<\/em><\/strong><\/a><\/p>\n Speaking to Cointelegraph, Ohm Shah, co-founder of Wallet Guard, stated that Stripe\u2019s new offering could \u201callow for many people to easily enter into Web3.\u201d<\/p>\n However, Shah stressed the importance of conducting due diligence before purchasing digital assets, even if the customer is familiar with the company providing the fiat-to-crypto on-ramp. He noted:<\/p>\n \u201cWhile on-ramping with Stripe to purchase your very first NFT [nonfungible token] can be exciting, it\u2019s important to consider how easy it is to lose your assets as all it takes is one malicious signature.\u201d<\/p><\/blockquote>\n This comes after mobile payments service\u00a0Venmo announced its own fiat-to-crypto<\/a> payment service on April 28.<\/p>\n During an interview at Consensus 2023, PayPal executive Jose Fernandez da Ponte said the new feature would provide a use case for digital assets because now crypto will be used for \u201cfast and free near-instant transfers between Venmo wallets and PayPal wallets, which is basically connecting two of the largest networks and wallets in the country.\u201d<\/p>\n Meanwhile, Robinhood announced its\u00a0fiat-to-crypto on-ramp<\/a>\u00a0at Consensus on April 27. Robinhood Connect allows users to purchase and sell crypto using a credit or debit card in their self-custody wallet or natively in decentralized applications.<\/p>\n Magazine:\u00a0<\/em><\/strong>How to control the AIs and incentivize the humans with crypto<\/em><\/strong><\/a><\/p>\n<\/div>\n\n