Stripe Not Ruling out Acceptance of Crypto Payments
John Collison, the co-founder of Stripe, stated that the company has not completely ruled out accepting cryptocurrency as a mode of payment in the future. Back in 2018, the online payments company had decided to put an end to their support for Bitcoin payments. They had cited reasons like the lack of efficiency associated with Bitcoin in conducting everyday transactions and the notoriety of the digital coin for volatile movements in price. On Tuesday, Collision spoke at the Fintech Abu Dhabi festival and elaborated that cryptocurrencies obviously have different meanings for different people.
He went on to elaborate that there were some aspects of cryptocurrencies that were just not relevant to what the company does. This includes the use of these digital currencies as a speculative investment. However, he added that there had been a number of developments recently that could actually make crypto a better option. He said that these developments could actually make these digital currencies an acceptable and scalable method of payment in the future. He was questioned about whether Stripe would begin to accept crypto as a mode of payment once more. The co-founder responded that while they did not have any immediate plans of doing so, it was not completely implausible for them to consider it.
Recently, the company had established a team dedicated to exploring cryptocurrencies and another buzzword in tech known as ‘Web3’, which is a new and decentralized form of the internet. The head of engineering at Stripe, Guillaume Poncin is leading the entire effort. Earlier this month, the payment firm had made another addition to its board of directors in the form of Matt Huang. He was the co-founder of Paradigm, a venture capital firm that’s focused on cryptocurrencies. Collision elaborated that digital assets were experiencing a great deal of innovations and some of them have great potential.
He mentioned Solana, which is considered a competitor of Ethereum, the second-largest digital currency in the world. He also made a reference to ‘Layer 2’ systems, such as the Lightning Network of bitcoin that are designed to speed up the transaction time and also process them at a reduced cost. Stripe had been launched back in 2009 and the company has expanded quickly to become the largest fintech to be held privately in the United States. The last valuation of the company put it around $95 billion and its list of investors includes some renowned names, such as Andreessen Horowitz, Sequoia Capital and Baillie Gifford.
Not only does Stripe process payments for some of the world’s biggest companies, such as Amazon, Google and Uber, it has recently also made expansions into some other areas of the finance industry. These include tax management and loans. Most importantly, the company also appears to be satisfied with its status of a private company and does not seem to have any intention of going public. However, it is relevant that not jumping on the crypto bandwagon could put it behind because even payment services like PayPal have come on board, considering the widespread adoption.