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Investing.com -- Coinbase (NASDAQ:COIN) has introduced Coinbase Payments, a new stablecoin payment system designed for ecommerce platforms, with Shopify (NASDAQ:SHOP) as its first major partner.
The new payment stack allows merchants to accept USDC stablecoin payments globally with 24/7 availability, faster settlement times, and lower fees compared to traditional payment methods.
Coinbase Payments comes as stablecoins processed $30 trillion in settlements last year, representing a threefold increase year-over-year. The company notes that more than half of Fortune 500 companies are building blockchain-based solutions, while a third of small businesses already use cryptocurrency.
The payment system consists of three main components: Stablecoin Checkout for consumer interactions, Ecommerce Engine for merchant operations, and Commerce Payments Protocol for blockchain transactions. The system runs on Base, Coinbase’s blockchain platform, to provide fast, low-cost execution.
Shopify has integrated Coinbase Payments to enable its merchants to accept USDC payments from customers worldwide without requiring additional setup. The system handles authorization, capture, refunds, and other payment functions through APIs, removing the need for merchants to have blockchain expertise.
Coinbase is targeting payment service providers, marketplaces, and ecommerce infrastructure companies with this new offering. The company promises these platforms can add USDC support without rebuilding their existing systems while enabling global payments and reducing costs.
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