Coinbase Unveils Coinbase Payments, Partners with Shopify to Enable USDC Transactions for Millions of Merchants

On June 18, Coinbase, a leading cryptocurrency exchange, announced the launch of Coinbase Payments, a stablecoin payment infrastructure designed to streamline ecommerce transactions for commerce platforms worldwide. Built on Coinbase’s Ethereum layer-2 network, Base, the solution enables merchants to accept USDC payments instantly, 24/7, without requiring blockchain expertise. In a significant move, Coinbase has partnered with Shopify, the global ecommerce giant, to integrate this payment stack, allowing millions of merchants to offer USDC payments seamlessly. The announcement, which aligns with growing stablecoin adoption, has sparked interest across the crypto and retail sectors, highlighting the potential for blockchain to reshape global payments.

Coinbase Payments: A Three-Tiered Solution for Ecommerce

Coinbase Payments is structured around three modular components to facilitate stablecoin transactions for both merchants and consumers.

• The Stablecoin Checkout provides a gasless, browser-native experience, enabling customers to pay with USDC using popular wallets like MetaMask, Phantom, or Coinbase Wallet.

• The Ecommerce Engine offers platforms an API to manage critical functions such as authorization, refunds, subscriptions, and ledgering, replicating traditional payment systems’ familiarity.

• Finally, the Commerce Payments Protocol leverages open-source smart contracts to execute secure, scalable on-chain transactions with sub-second finality and minimal fees, powered by Base’s high-performance infrastructure.

According to Coinbase, this full-stack solution abstracts blockchain complexities, allowing commerce platforms—such as payment service providers (PSPs), marketplaces, and ecommerce providers—to integrate USDC payments without crypto-native teams. The company emphasized that stablecoins processed $30 trillion in settlements in 2024, a threefold increase year-over-year, underscoring the market’s readiness for such solutions.

Shopify Integration: A Milestone for Stablecoin Adoption

The partnership with Shopify marks a pivotal step toward mainstream stablecoin use in retail. Shopify, which powers millions of merchants globally, including brands like BarkBox and SKIMS, has integrated Coinbase Payments to enable USDC transactions across its ecosystem. Merchants can now accept USDC from global customers without additional setup, benefiting from faster settlements and lower transaction costs compared to traditional payment rails. Shopify’s CEO, Tobi Lutke, described stablecoins as “a natural way to transact on the internet,” reinforcing the platform’s commitment to blockchain innovation.

The integration, which also involves Stripe for enhanced payment flexibility, began with early access for select Shopify merchants in June, with plans for a broader rollout across the U.S. and Europe later this year. Base, Coinbase’s layer-2 network, supports 6% of USDC’s $61 billion supply, ranking as the third-largest network for USDC circulation. Its low fees and rapid transaction speeds make it an ideal backbone for Shopify’s global commerce ambitions.

Following the announcement, Coinbase's stock surged 16.32% during trading on June 18, closing at $295.29.

Coinbase and Shopify’s Crypto Journey

Coinbase has been expanding its payment offerings, including partnerships with PayPal to promote PYUSD and plans to integrate USDC as collateral for futures trading. Shopify, meanwhile, has progressively embraced crypto, previously enabling Bitcoin payments via Coinbase Commerce in 2020 and exploring NFT integrations. The new USDC protocol, co-developed with Coinbase, mirrors credit card mechanics like “authorize now, capture later,” addressing retail pain points like chargebacks and refunds.

Coinbase Payments and the Shopify partnership signal a maturing crypto payments landscape, where stablecoins bridge traditional finance and blockchain efficiency. As Shopify expands USDC access to its 700 million global shoppers, Coinbase’s stablecoin business is poised to benefit from a vast and consistent demand ecosystem.

For merchants, the promise of lower fees and borderless payments could drive adoption, while consumers gain flexibility to spend crypto seamlessly. Coinbase’s focus on scalable, user-friendly infrastructure positions it as a key player in this shift, with Base as a cornerstone of its on-chain vision.