Stripe’s new fiat-to-crypto onramp is an attempt to solve the “cold start problem”

With Stripe’s hosted fiat-to-crypto onramp, Web3 businesses can offer clients the option to acquire cryptocurrency “exactly when they need it.”

According to a statement released on May 4th, Stripe’s newly available fiat-to-crypto onramp – which will be hosted by Stripe itself – will enable Web3 firms to provide clients in the United States with the option to acquire cryptocurrency “at the precise moment they need it,” without requiring the addition of any code to a website or app.

Instead, users will be given a URL to use when exchanging fiat currency for cryptocurrency. It was said that to help businesses fulfill their KYC and compliance obligations, they have integrated fraud detection and identity verification solutions.

The new onramp service is being implemented to let Web3 businesses provide their consumers with an easy method to fund their cryptocurrency wallets. It mentioned:

“Cold start problem” is a common issue for businesses interested in providing cryptocurrency and blockchain-enabled experiences: Their clients lack the crypto necessary to complete transactions.”

Stripe’s fiat-to-crypto onramp has been used by a number of Web3 firms, including the privacy-focused browser Brave, the DeFi protocol 1-inch, and the blockchain platform Lens Protocol.

According to Brave’s vice president of Web3 products James Mudgett, the service would help the platform “reach new Web3 users.”

Meanwhile, 1inch co-founder Sergei Kunz emphasized the need to develop “bridges between Web2 and Web3,” citing Stripe’s expertise with Web3 businesses as a reason why the company is “well positioned to help.”

When asked about Stripe’s new product, Wallet Guard co-founder Ohm Shah told Cointelegraph that it might “allow for many people to easily enter into Web3.”

Even if the customer is already aware of the firm offering a fiat-to-cryptocurrency onramp, Shah emphasized the need of doing the research before making a purchase of digital assets.

Also Read: Chinese Cryptocurrency Users Strong Despite Ban