TL;DR
- Coinbase Payments is an infrastructure that allows merchants to accept USDC instantly, with no downtime and lower fees.
- The solution runs on Base and is already live on Shopify, integrating crypto payments without requiring merchants to modify their existing systems.
- The platform combines a wallet-native checkout, an ecommerce engine, and open-source smart contracts, removing the technical complexity of onchain transactions.
Coinbase has officially announced the launch of its new stablecoin payments infrastructure, designed for digital merchants and payment service providers.
Under the name Coinbase Payments, this system enables instant USDC payments with continuous availability and lower fees, eliminating the technical challenges typically involved in integrating blockchain technology into traditional commerce platforms.
The solution is built on Base, the Layer-2 blockchain developed by the exchange, and is already operational on Shopify. This allows millions of merchants to accept USDC payments worldwide without having to adjust their existing infrastructure. According to the company’s own data, stablecoins processed $30 trillion in settlements during 2024, tripling the volume recorded the previous year. With this new product, Coinbase aims to capture that unmet demand by offering commercial platforms a fast, reliable way to add crypto payment options.
How Does Coinbase Payments Work?
The system is built around three core components. The consumer-facing layer features a wallet-native checkout compatible with wallets like Coinbase Wallet, MetaMask, and Phantom. It enables gasless payments, optimized for a smooth, frictionless user experience.
The second layer, focused on merchants and payment service providers, is an ecommerce engine that manages authorizations, captures, refunds, subscriptions, and key management through APIs. This eliminates the need for platforms to handle onchain operations directly. The third component is an open-source smart contract payments protocol that replicates traditional payment mechanics like escrow, delayed capture, and refunds — but executes them quickly and affordably onchain.
Future Expansions and Added Features
The agreement with Shopify enables all three layers to operate simultaneously, making it easy for any store within its network to automatically accept USDC payments worldwide. Coinbase also plans to extend this solution to other marketplaces, payment providers, and ecommerce systems. Among the upcoming features are tools for converting stablecoins to fiat and programmable incentive systems.
The launch comes at a time when much of the Fortune 500 and a growing number of small businesses already transact with digital assets, though without standardized payment solutions. Coinbase Payments seeks to fill that gap with an accessible, scalable infrastructure free from technical barriers.
