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Stripe introduces a fiat-to-crypto service

Internet payment processor Stripe has introduced a fiat-to-crypto on-ramp to address the “cold start problem” faced by Web3 companies due to customers not having “crypto in their wallets to carry out transactions.”

According to a May 4 statement, Stripe’s newly launched fiat-to-crypto on-ramp, which Stripe itself will host, will allow Web3 companies to offer United States-based customers the ability to purchase crypto “at the precise moment they need it” without the need to embed any code into a website or app.

Instead, customers will be directed to a link to convert their fiat into crypto.

Guillaume Poncin, head of engineering for crypto at Stripe, said Stripe would handle several compliance-related tasks for Web3 companies using the on-ramp, including conversion and authorization optimization, identity verification, and fraud prevention, to help “customers start using Web3 services quickly and safely.“

It was noted that built-in fraud detection and identity verification tools were implemented to support companies in meeting Know Your Customer and compliance requirements.

Source:

  • https://cointelegraph.com/news/stripe-tackles-cold-start-problem-with-the-launch-of-fiat-to-crypto-onramp