Coinbase is rolling out a new set of B2B payment tools that utilize USDC, a stablecoin pegged to the US dollar, making transactions as simple as sending an email.
On October 16, the company announced a global payout feature enabling businesses to send USDC to any on-chain address or directly to an email. This means that vendors or contractors without a crypto wallet can quickly get started, as Coinbase will handle their onboarding. Recipients will receive an email link to set up a free account and can then easily claim or withdraw funds in their local currency.
This feature, when paired with the Payouts API, allows businesses to automate their payment processes, making it possible to manage on-demand, batch, or scheduled payments.
The launch marks a significant step in Coinbase’s development of seller services. The company also plans to incorporate its cryptocurrency checkout tool, Coinbase Commerce, into its Coinbase Business platform in the near future. This merger is expected to combine features from both services, including secure custody, instant cash outs, and necessary infrastructure for large-scale financial operations.
Enhancing Payment Efficiency
Coinbase’s move into business payments represents more than just a new product release; it’s a strategic decision regarding the future of commerce. The company envisions a world where money becomes instantaneous, adaptable, and programmable. The belief is that businesses will turn to cryptocurrencies for their speed and lower costs, rather than just following trends.
For companies in the B2B space, handling remittances is just one piece of a larger puzzle. Collecting payments can be another hurdle. Traditional payment processors often impose fees around 3% per transaction and can delay payments for days. This model harks back to times when a human clerk would run physical credit cards through machines.
Coinbase’s payment link changes this dynamic. Instead of working with card processors, businesses can create a link that requests a specific sum in USDC. When customers click on it, they can pay using a compatible wallet, completing the transaction in under a second—without network fees or chargebacks.
The forthcoming Payment Links API aims to streamline this process for developers, integrating it seamlessly into various platforms like Software-as-a-Service (SaaS) or e-commerce systems.
“The major issue isn’t the adoption of cryptocurrency; it’s the user experience,” noted Bam Azizi, CEO of Mesh, in a previous interview. He emphasized the importance of making payments so simple that anyone could use them, possibly without even understanding that a stablecoin is involved.
The concept of stablecoin payments resonates globally, with fintech companies from Stripe to Ramp experimenting with these solutions and on-chain settlements. Still, Coinbase may have a distinct advantage from its liquidity and compliance expertise.
“This focus is about what businesses truly need,” explained Raj Damodaran, Executive Vice President of Blockchain and Digital Assets at Mastercard. “It’s not solely about costs; it’s about reliability, simplicity, and overall convenience.”
