Stripe Inc., a leading digital asset payment platform, has launched a fiat-to-crypto on-ramp to solve the “cold start problem” that Web3 firms experience owing to clients not having “crypto in their wallets to carry out transactions.”
Stripe to Handle Compliance-Related Tasks
With this advancement, several compliance-related tasks, such as transformation and permission optimization, authentication of identities, and avoiding fraudulent transactions, will be handled by Stripe for Web3-related businesses via on-ramp, according to Guillaume Poncin, head of engineering for crypto at Stripe. This will allow “customers to start using Web3 services quickly and safely,” he said.
A Simple Solution to the Cold Start Problem
Integrated theft prevention and authentication of identity features have been added to help businesses satisfy Know Your Customer and regulatory standards. The new on-ramp service intends to help Web3 enterprises by offering a simple method for users to fill up their cryptocurrency wallets.
The platform explained:
“Companies interested in offering cryptocurrency and blockchain-enabled experiences often face a cold start problem: Their customers don’t have the crypto in their wallets to carry out transactions.”
Reaching New Web3 Users
Stripe’s just-launched fiat-to-crypto on-ramp, will also make it possible for Web3 companies to offer US-based clients an option to get crypto “at the precise moment they need it” without having to include any code into an application or website, in accordance with a May 4 statement.
Customers will instead be directed to a page where they may change their fiat currency to cryptocurrency. According to James Mudgett, Brave’s vice president of Web3 products, the service would allow the platform to “reach new Web3 users.”
Stripe’s Expertise in the Industry
In the meantime, 1inch co-founder Sergei Kunz emphasized the need of “bridges between Web2 and Web3,” adding that Stripe’s expertise with Web3 startups has it “well positioned to help.”
Notably, Stripe’s founders said in November last year that they over-hired personnel, which increased operational costs too rapidly, resulting in a 14% cut in its headcount. Furthermore, as TheCoinRise reported, in March of last year, Binance also established Bifinity, its own fiat-to-crypto payments platform.