Internet payment processor Stripe has launched a new fiat-to-crypto on-ramp to tackle the “cold start problem” faced by Web3 firms, where customers lack crypto in their wallets to carry out transactions. The newly introduced on-ramp, which will be hosted by Stripe itself, enables US-based customers of Web3 firms to buy crypto “at the precise moment they need it” without requiring any code embedding into a website or app. Stripe will manage various compliance tasks, including conversion and authorisation optimisation, identity verification and fraud prevention, to help customers utilise Web3 services “quickly and safely.”
Fraud detection and identity verification tools are included in the service to help companies meet compliance and Know Your Customer requirements. Stripe’s new service hopes to provide a user-friendly solution to Web3 companies, enabling customers to top up their crypto wallets. Various Web3 companies, such as Brave, 1inch and Lens Protocol have already implemented Stripe’s fiat-to-crypto on-ramp. Experts caution that customers should conduct due diligence before purchasing digital assets, even if they are familiar with the firm providing the fiat-to-crypto service.
Furthermore, Venmo’s fiat-to-crypto payment service was announced on 28 April, whilst Robinhood announced its own fiat-to-crypto on-ramp on 27 April during Consensus 2023.