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Stripe Crypto Payouts (stripe.com)
28 points by tzm 10 days ago | hide | past | favorite | 6 comments

Paying out with USDC provides the illusion of an instant transfer. The wallet to wallet part is instant.

But to de-tokenize USDC back into more universally accepted USD fiat comes with restrictions, delays and fees.

So if someone needs fiat now to pay bills, this full circle overall payout process is just a roundabout way of doing an ACH USD transfer --- albeit one that tickles the fancy of crypto fans while Coinbase receives transaction fees.

In my experience, Coinbase doesn't charge any fees on USDC to USD conversion. And then if you live in the right place, you could get their debit card and use your funds pretty much instantly.

There are transaction fees based on how fast you need your money. The wire fee is $25. ACH is free but can take 3-5 business days according to their web site. There are also limits on transaction amounts.

Bottom line: The business case for using USDC over fiat banking is virtually nil in my opinion --- more gimmick than function. Decent credit unions have been providing similar service for years --- including debit card --- minus the crypto experience.

>Recipients paid in crypto must be individuals or sole proprietors. Paying companies and non-profits in crypto is not currently supported.

Ok so nobody will realistically use this? I mean I wouldn't choose a payments solution that locks me out of growing my company.

> Crypto payouts enable your platform to pay sellers, freelancers, creators, and service providers in crypto, starting with USDC.

I'm confused. Can you checkout with USDC (customer buying goods/services + paying with USDC)? Where does paying out come into play?

If I sell a widget for $20 on my Shopify store, I can accept USD or USDC. Then I can pay myself out with USD or USDC? I feel like I have this wrong.

Connect is Stripes product that allows you to build marketplaces. I believe this would be how you would pay out your users. e.g. if PayPal used stripe to back their app.

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