Coinbase Launches Coinbase Payments for E-commerce Stablecoin Transactions

Coinbase has launched a new stablecoin payment solution called Coinbase Payments, designed specifically for e-commerce platforms. This service aims to simplify the integration of stablecoin transactions into existing commerce ecosystems, making it easier for merchants to adopt this technology without needing extensive blockchain knowledge. The platform consists of three main components: Stablecoin Checkout, E-commerce Engine, and Commerce Payments Protocol.

Stablecoin Checkout offers a wallet-native interface that supports a variety of wallets, including MetaMask, Phantom, and Coinbase Wallet. This interface ensures gas-free transactions and records payments in USDC, a stablecoin backed by the US dollar. The E-commerce Engine provides APIs for various payment functions such as authorization, capture, refunds, ledgering, and subscriptions. This allows payment service providers to integrate stablecoin flows into their existing merchant dashboards seamlessly. The Commerce Payments Protocol executes smart contract escrow and settlement on Base, Coinbase’s layer-2 network, ensuring sub-second block times.

The modular design of Coinbase Payments is intended to make stablecoin transactions more accessible and cost-effective. By abstracting the complexities of blockchain technology, the platform aims to settle global transactions at a lower cost compared to traditional card networks. This approach is expected to position USDC as a default internet payment method, given that more than half of Fortune 500 firms are experimenting with on-chain tools and roughly one-third of small businesses already accept some form of crypto.

Shopify has already activated the Coinbase Payments stack for an early-access cohort of merchants, marking one of the first retail deployments of USDC at scale. Buyers can pay in USDC, while Shopify receives fiat payouts unless a merchant opts to retain the stablecoin. Stripe has assisted in abstracting the crypto logic from sellers’ workflows, and Shopify plans to offer 1% USDC cashback incentives for consumers. Coinbase has stated that Stablecoin Checkout handles consumer interaction, the E-commerce Engine manages merchant controls through APIs, and the protocol layer facilitates smart-contract escrow and settlement behind the scenes.

Coinbase has invited payment processors, marketplaces, and e-commerce software vendors to integrate the platform immediately. The same stack powering Shopify’s rollout is now available through Coinbase’s developer portal, allowing for broader adoption and integration. This move is part of Coinbase’s strategy to make stablecoin rails accessible through a single integration, thereby enhancing the usability and adoption of USDC in the e-commerce sector.