Shopify to Launch USDC Payments for Merchants on Coinbase’s Base
Shopify (SHOP) will introduce stablecoin payments for its merchants via Coinbase's Base Ethereum layer-2 network starting June 12 for select early access merchants. A wider rollout is planned later this year.
Key points include:
- Merchants can accept Circle's USDC token on-chain with local currency settlements, avoiding foreign transaction fees.
- Shopify plans to offer a 1% cash back incentive for customers paying with USDC later in the year.
- Stablecoins are increasingly utilized for payments and remittances, showing a 54% growth in supply year-on-year.
- The initiative aims to enhance global commerce efficiency through a new open-source payments protocol developed by Shopify and Coinbase.
- The smart contract protocol includes features like delayed capture, tax calculation, and refund processing, integrated into existing order systems.
- Shopify chose Base for its cost-effective, fast, and secure transaction capabilities to integrate crypto payments into retail.