Coinbase Launches USDC on Shopify and American Express Card

Coinbase has introduced two significant developments in the cryptocurrency space: a stablecoin payment option on Shopify and an American Express credit card. During the State of Crypto Summit, Coinbase announced that buyers making online purchases from approximately two million businesses using Shopify may soon see USDC on Base as a payment option. This integration will require users to approve payments via a third-party crypto wallet, adding a layer of security and convenience to the transaction process.

Shopify CEO Tobi Lutke highlighted the complexity of backend processes involved in online transactions, emphasizing the importance of stablecoins in simplifying these processes. Stablecoins, which are designed to maintain a stable value, are crucial for ensuring that the payment process remains smooth and predictable. Shopify has previously experimented with various crypto payment options, including bitcoin payments back in 2013. The platform currently supports several crypto payment integrations, such as Solana Pay, Crypto.com, and Strike, although the adoption rate among merchants remains unclear.

The USDC on Base payment option is initially rolling out in early access, with plans to expand the rollout throughout the year. Shopify is also exploring the addition of a 1% cashback perk as an extra incentive for users. Stripe’s technology is instrumental in facilitating this integration, allowing merchants to choose whether to keep their earnings in USDC or convert them into their native fiat currency. Coinbase executives and staff have emphasized that high credit card fees and the global nature of crypto payments are key areas where cryptocurrency can offer solutions.

In a somewhat ironic move, Coinbase also unveiled its American Express credit card, the Coinbase One Card. This card, which uses Amex’s network, is not free and promises 2-4% bitcoin back per purchase. The card will be available only in the US and is set to launch this fall. To apply for and maintain the card, users must have an active Coinbase One Basic or Coinbase One subscription. American Express is known for its premium credit card offerings and high merchant fees, which can be a point of frustration for businesses. The card is expected to weigh 17 grams, the same as the invite-only Amex Centurion card, which costs thousands of dollars annually.

The Coinbase One subscription is particularly beneficial for frequent traders who seek no-fee Coinbase trades, enhanced staking rewards, and prioritized customer service. American Express SVP of Global Network Services Will Stredwick noted that Amex’s brand appeals to younger generations, including Millennials and Gen Z, who are increasingly embracing cryptocurrency. A 2024 survey found that 22% of Millennials and 20% of Gen Z own crypto, compared to 10% of Gen X and 5% of Boomers. The Coinbase One Amex card is expected to release this fall, joining a lineup of other crypto payment cards, including the MetaMask Mastercard, Gemini bitcoin rewards Mastercard, Avalanche Visa, and Solayer Visa.

These developments raise questions about the cryptocurrency industry’s relationship with traditional financial systems. While some may view these integrations as a way to disrupt traditional finance, others see them as a strategic move to compete within the existing framework. The introduction of the Coinbase One Card and the USDC on Base payment option on Shopify underscores the growing acceptance and integration of cryptocurrency into mainstream financial services, offering users new ways to transact and manage their finances.