Shopify Partners with Coinbase and Stripe to Enable USDC Payments for Merchants

On June 12, Shopify, a leading global e-commerce platform, announced a strategic partnership with Coinbase, a major cryptocurrency exchange, and Stripe, a prominent payment processing company, to enable merchants to accept payments in Circle’s USDC stablecoin. This move marks a significant step toward integrating cryptocurrency payments into mainstream e-commerce, leveraging the stability of USDC and the efficiency of Coinbase’s Base blockchain network. The initiative, which will begin rolling out to select merchants in the United States and Europe later in June, aims to streamline crypto transactions for both merchants and consumers across 34 countries by the end of the year.

Details of the Partnership

The collaboration allows Shopify merchants to accept USDC payments through a new "Commerce Payment Protocol" developed in partnership with Coinbase. This protocol is designed to address common challenges in cryptocurrency payments, such as transaction complexity, refund processing, and chargeback handling. By integrating with Stripe, merchants can seamlessly receive settlements in their preferred local currency, with funds deposited directly into their bank accounts, mirroring the experience of traditional payment methods. The USDC payment option is enabled by default for merchants, though they can opt out manually if desired. Merchants accepting these payments will reportedly receive up to 0.5% cashback on USDC transactions. Later this year, customers paying with USDC will also be eligible for cashback incentives.

The payments are processed on Coinbase’s Base network, an Ethereum layer-2 solution known for its low transaction fees and scalability. This choice ensures faster and more cost-effective transactions compared to traditional blockchain networks, making it practical for everyday commerce.

Why USDC and Stablecoins Matter

USDC, issued by Circle, is a stablecoin pegged to the U.S. dollar, offering price stability that makes it an attractive option for merchants wary of cryptocurrency volatility. As of June 13, USDC’s market capitalization stood at approximately $61 billion, making it one of the largest stablecoins in the market, second only to Tether’s USDT. Its widespread adoption in decentralized finance (DeFi) and now e-commerce underscores its growing role as a bridge between traditional finance and blockchain-based systems.

This partnership aligns with Shopify’s ongoing efforts to expand payment options for its global merchant base. In 2020, Shopify introduced crypto payment support through partnerships with Coinbase Commerce and other providers, allowing merchants to accept Bitcoin and Ethereum. The addition of USDC builds on this foundation, offering a more stable and practical option for everyday transactions.

Implications for Merchants and Consumers

For merchants, the ability to accept USDC payments offers access to a growing demographic of crypto-savvy consumers while minimizing exposure to price volatility. The integration with Stripe ensures that merchants can operate without needing deep technical knowledge of blockchain, as settlements are handled in fiat currency. For consumers, paying with USDC on Base provides a fast and low-cost alternative to traditional payment methods, particularly in cross-border transactions where fees and delays are common.

The partnership also highlights the increasing convergence of crypto and traditional financial infrastructure. By combining Coinbase’s blockchain expertise, Stripe’s payment processing capabilities, and Shopify’s vast merchant network, the initiative creates a seamless experience that could accelerate mainstream adoption of stablecoins.

In a statement, Shopify’s Chief Operating Officer and Vice President of Product, Kaz Nejatian, highlighted the convenience this partnership brings to merchants: “Stripe has long handled the hard parts of payments so our merchants don’t have to. Now they’re doing the same for stablecoins—making it simple for our merchants to meet booming global demand without wrestling with crypto infrastructure.”