Checkout.com has become the latest traditional payment company to support cryptocurrency payments.
Popular fintech company Checkout.com has become the latest financial services firm to announce that it has ventured into the cryptocurrency bandwagon by allowing merchants to accept digital currency payments.
According to a CNBC report today, Checkout.com will be launching a feature that will allow its growing list of customers to accept and make payments using the second-largest stablecoin USD Coin (USDC).
The initiative has prompted Checkout.com to partner with cryptocurrency security provider Fireblocks, to facilitate merchants’ acceptance of $USDC as a payment method.
Importance of the New Service
Commenting on the development, Jess Houlgrave, Checkout.com’s head of crypto strategy, said during the Money 20/20 fintech conference in Amsterdam that the initiative is imperative as it will help merchants using its service to accept $USDC payment on a daily basis even on weekends when traditional financial institutions do not operate.
Houlgrave noted that the new service is similar to purchasing crypto from a trading platform, adding that while cryptocurrency transactions are completed immediately on weekends, traditional financial institutions may not receive funds for days.
“Between the time that they’ve sent the bitcoin, and the time that they receive those funds, they have a working capital constraint,” she added.
Checkout.com’s Dominance in the Global Payment Sector
Checkout.com is one of the biggest traditional payment providers in the world. The financial service firm, which was last valued at $40 billion, is mostly considered a major rival to other top payment companies, including PayPal and Stripe.
Earlier this year, Stripe moved further into the world of cryptocurrency, as the company tapped Polygon to allow Twitter users to receive $USDC payments.
Although Checkout.com’s entrance into the crypto bandwagon may come as a surprise to many, the company has been considering integrating USDC into its list of supported payment methods.
Per the report, Checkout.com commenced testing for the offering with a few of its clients a few months ago, which ended with positive results as over $300 million worth of transactions were completed in the process.
Checkout.com Play Safe
Despite Checkout.com betting big on cryptocurrency, the firm has decided to mitigate the risks associated with the asset class by opting for a stablecoin pegged to the dollar, which rarely fluctuates like other cryptocurrencies.
However, the recent event with Terra stablecoin ($UST) has shown that stablecoins are not entirely safe. Although $UST crashed as a result of Terra’s design, the unfortunate incident did a lot of damage to the confidence of cryptocurrency investors, resulting in widespread capitulation.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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