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Shopify is rolling out USDC payments via Coinbase's Base network, providing cashback privileges and expanding cryptocurrency payment options through Shopify Payments.
Shopify launches early access to stablecoin USDC payments on Base
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The global e-commerce giant Shopify has launched early access to stablecoin payments in USDC from Circle in collaboration with the major American exchange Coinbase.
Shopify plans to fully launch USDC
US Dollar for Dollar
$0.9996
Coinbase announced on Thursday the launch of payments on its Ethereum layer-2 (L2) network via Shopify Payments and Shop Pay later this year.
Shopify CEO Toby Lutke said in a post on X on Thursday: "We believe stablecoins are a natural way to conduct transactions online, and we have worked with Coinbase to develop the smart contract for the commercial payment protocol that supports this effort."
Coinbase CEO Brian Armstrong (left) and Shopify CEO Toby Lutke announce Shopify payments in USDC on the Base platform. Source: Toby Lutke
The CEO noted that Shopify's new stablecoin payment feature will also allow the company to offer incentives to buyers, such as 1% cashback on local currency payments in the future.
Shopify uses the payment base
Coinbase's Base blockchain is the fourth-largest network for USDC, with USDC issued by Base representing 6% of the total supply of the stablecoin amounting to $61 billion, according to data from USDC Transparency and CoinGecko.
Shopify has stated that the Base platform, developed by Coinbase, is "a high-speed and affordable network, emerging as a great way to transfer money." The company also mentioned that Base offers "fast, cheap, and secure transactions," providing a global payment service available 24/7.
The five largest blockchains for USDC in terms of supply at the time of writing this report. Source: USDC Transparency, CoinGecko
Since Shopify did not mention whether the company expects to consider native support for more USDC chains or just some additional cryptocurrencies and stablecoins, many online commentators have been curious about the choice of Base.
Related: Major tech companies are considering adopting stablecoins as the GENIUS law debate continues
What is the benefit of narrowing market access? All chains that rely on USDC support should be backed, wrote one user on X.
Indirect support for Bitcoin has existed since 2013
Shopify's new partnership with Coinbase in the USDC space is not its first foray into cryptocurrency.
Shopify has indirectly supported Bitcoin
Bitcoin
$104,749
Bitcoin has been offering payments through gateway integrations since at least 2013 when the company officially announced that all of its 75,000 merchants were free to start accepting Bitcoin.
Source: Shopify
According to Shopify's Help Center, Shopify allows merchants to integrate at least nine additional payment methods featuring a wide range of supported cryptocurrencies, through integrations with third-party gateways like BitPay, Solana Pay, and more.
Due to long settlement periods, cryptocurrency transactions may lead to overselling in instant sales. Use a direct payment method like Shopify Payments for optimal performance in instant sales, according to a help center message.
The recent partnership between Shopify and Coinbase is not the first collaboration between the two companies in utilizing digital currency.
In 2019 and 2020, Coinbase and Shopify joined Meta's (formerly Facebook) stablecoin project Diem, initially known as Libra. After years of opposition from global regulators, the project was officially shut down in early 2022.
