Coinbase Launches “Coinbase Payments” to Bring USDC to Global E‑Commerce

The new service allows online sellers—starting with those on Shopify—to accept USDC 24/7 with instant settlement and no need to understand blockchain mechanics. Instead of dealing with volatile cryptocurrencies, merchants receive a stable digital dollar that is redeemable 1:1 and can be automatically converted to local fiat currency. By using Base, Coinbase’s Ethereum-compatible layer-2 network, transactions are finalized with extremely low fees—often under one cent.

Coinbase stated that payments via USDC offer a number of advantages over credit card systems. Merchants don’t have to worry about chargebacks, foreign exchange fees, or settlement delays. Customers, meanwhile, get faster checkouts and full transparency on transaction status. Unlike traditional systems that rely on batch processing and banking hours, Coinbase Payments operates continuously, making it especially appealing for global commerce.

A key differentiator of Coinbase Payments is that it integrates with Shopify’s new Commerce Payments Protocol. This technical standard, jointly developed with Coinbase, introduces support for escrow-based payments, delayed capture, and refunds—all programmable through smart contracts. This means merchants can configure payments to execute only after delivery, automatically issue partial refunds, or apply discounts without any manual intervention. The system is designed for real-world reliability and customer protection.

Coinbase is already piloting this solution with a limited group of early-access Shopify merchants. A broader rollout through Shopify Payments is planned later in 2025. The company said the goal is to make accepting USDC “as easy as using a credit card,” even for businesses that have never used crypto before. As part of the launch, Shopify customers paying in USDC may receive cashback incentives of up to 1%, depending on their region and payment method. These rebates are funded by Shopify and do not affect merchant revenue.

According to Coinbase, USDC has emerged as one of the most trusted stablecoins globally, with full backing by short-term U.S. Treasuries and cash reserves. Coinbase co-manages USDC through its partnership with Circle.

The launch of Coinbase Payments comes at a time of increasing momentum for the U.S. stablecoin sector. On June 17—the day before Coinbase announced the product—the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) in a 68–30 bipartisan vote. The bill, if signed into law, will establish federal guardrails for stablecoin issuers, including requirements for monthly audits, full reserve backing, and clear licensing paths under both state and federal oversight. The House is currently reviewing a companion version of the bill.

By enabling programmable, transparent, and ultra-low-cost payments, Coinbase is attempting to leapfrog traditional providers such as PayPal, Stripe, and Visa in the e-commerce space. Yet the company says its focus is not competition but compatibility: its open Onchain Payment Protocol can be adopted by any wallet, not just Coinbase’s own, and supports dozens of tokens across Ethereum-compatible networks. Merchants and developers can plug into the protocol using familiar web interfaces or integrate it directly into point-of-sale systems.

There are still obstacles to widespread adoption. Regulatory uncertainty persists in many markets outside the U.S. Merchants may remain wary of crypto payments due to past volatility and limited customer demand. And while the Base network solves scalability and cost issues, its uptake among non-crypto-native developers remains limited for now. However, with Coinbase’s user-friendly interfaces, simplified onboarding, and support from a major commerce platform like Shopify, these barriers are narrowing.

For consumers, the experience of paying with crypto is also changing. Coinbase has redesigned the checkout flow so that buyers don’t need to copy wallet addresses or scan QR codes if they’re using a Coinbase account or supported wallet. Instead, the system verifies the wallet, confirms balances, and completes the transaction in just a few taps—mirroring the convenience of Apple Pay or Google Pay, but using onchain settlement.

Coinbase CEO Brian Armstrong has previously described stablecoins as the “killer app” for crypto, enabling global commerce without the volatility of Bitcoin or the opacity of bank transfers. With Coinbase Payments, the company is now putting that theory into practice—positioning USDC as a credible, programmable, and regulatory-aligned payment rail that can rival legacy financial networks.

Whether the model scales beyond Shopify to mass-market retailers and service providers will depend on regulation, user experience, and merchant incentives. But for now, Coinbase has placed a strong bet that the future of online payments will be faster, programmable, and dollar-based—and it’s banking that USDC will be at the center of it.