Stripe tackles 'cold start problem' with the launch of fiat-to-crypto onramp
Internet payment processor Stripe has introduced a fiat-to-crypto onramp to address the "cold start problem" faced by Web3 companies as a result of customers not having “crypto in their wallets to carry out transactions.”
According to a May 4 statement, Stripe’s newly launched fiat-to-crypto onramp – which will be hosted by Stripe itself – will enable Web3 companies to provide US-based customers with the ability to purchase crypto "at the precise moment they need it," without the need to embed any code into a website or app.
Guillaume Poncin, head of engineering for crypto at Stripe said Stripe will handle compliance-related tasks for Web3 companies using the onramp – such as conversion and authorization optimization, identity verification and fraud prevention – in an effort to help "customers start using Web3 services quickly and safely."
It was noted that built-in tools for fraud detection and identity verification were implemented to support companies in meeting Know Your Customer (KYC) and compliance requirements.
We’re introducing a Stripe-hosted fiat-to-crypto onramp (no code required) and unlocking the waitlist for the embeddable onramp. https://t.co/U9OW2cjFrZ pic.twitter.com/jjmkDUiOqc
It was highlighted that Web3 companies often face challenges from customers not possessing crypto in their wallets when seeking to offer crypto and blockchain services. It noted:
Stripe’s hosted-onramp has been implemented by several Web3 companies including privacy-focused browser Brave, decentralized finance (DeFi) protocol 1inch and blockchain protocol Lens Protocol.
James Mudgett, vice president of Web3 products at Brave stated that the service will allow the platform to “reach new Web3 users.”
Meanwhile, Sergei Kunz, cofounder at
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