Stripe announces fiat-to-crypto onramp widget TechCrunch

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Payments giant Stripe is to offer a new product that makes it easier to hold cryptocurrency without signing up to a cryptocurrency exchange. The company’s new fiat-to-crypto widget can be integrated into any crypto product so users can enter their card information and acquire crypto that can be used in another web3 product.

There are a few use cases where widgets like this make sense. The most common is probably the non-custodial wallet. Once you have crypto assets in your wallet, you can interact with various Web3 products using WalletConnect. You can buy NFTs, use DeFi products, and more.

But how do you upload crypto assets to these software wallets? The most logical use case is for you to first sign up with a centralized crypto exchange like Coinbase or Kraken. Once you have verified your identity, you can purchase cryptocurrencies and then transfer those assets to your noncustodial wallet.

It’s not a seamless experience. This is why developers of non-custodial wallets like Argent or ZenGo use fiat-to-crypto widgets. Stripe is not the first company to offer this product. Crypto companies like MoonPay and Ramp are already available in many crypto wallets.

In this case, MoonPay and Ramp take care of KYC requirements, fraud and compliance. They support dozens of fiat currencies and customers from over 150 countries. Essentially, you create an account with MoonPay or Ramp when you want to buy crypto assets and top up your wallet with no exchange-to-wallet transfer required.

It’s a much smoother experience because you don’t have to jump between multiple products. Of course, convenience doesn’t come cheap. MoonPay charges 4.5% on card payments while Ramp charges 2.9%. They also both offer bank transfers for lower fees.

Stripes fiat-to-crypto onramp would work more or less the same way. It is currently only available to US customers invited to test the product.

When a user wants to buy crypto, the Stripes widget asks you how much you want to spend in your fiat currency, the company adds a fee on top. You can then select the cryptocurrency you want and see how much you will receive once the transaction is confirmed.

Image credits: Stripe

In the screenshot example from Stripes, the company charged $4.99 to buy $100 worth of USDC. But these fees may vary depending on the amount and method of payment. Since this is a Stripe product, it should work with different payment methods from day one, such as card payments, bank transfers, Apple Pay, Google Pay, etc. Behind the scenes, Stripe partners with Zero Hash to get cryptocurrencies.

Stripe expects its widget to appeal to developers working on DEX, NFT, wallets and dApps platforms. For example, the company claims to have tested the product with Audius (a blockchain-based music streaming platform), Magic Eden (an NFT marketplace), and Argent (an Ethereum wallet that I’ve covered before).

The payment company handles KYC, payments, fraud, and compliance so crypto companies can focus on crypto instead of competing with Stripe. There are also side benefits with the Stripes fiat-to-crypto onramp product.

For example, it integrates with Link. If you’ve already made a purchase with Stripe and saved your payment information, Stripe can help you retrieve that information and checkout faster.

After the FTX debacle, products like Ramp, MoonPay, and the Stripes fiat-to-crypto widget will become essential. They can make it easier to avoid centralized exchanges. And it’s good to see that several companies are working on this issue.

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