In a blog post published on 17 March, Circle explained its Payments service will provide businesses around the world with much-needed flexibility when it comes to settlement. Jeremy Allaire, the CEO of Circle, said the entire business model of extracting huge tolls for the movement of value is set to go away completely, and be replaced with blockchain-based solutions such as Circle.
Circle’s Payments service enables users to transact in USDC regardless of their native fiat currency. This means that sending USDC through Circle to a bank account in the U.K. will see the transaction settle in GBP. When purchasing something from a Circle Payments user in GBP, the transaction would settle in USDC. International customers are also able to make debit and credit card purchases in their respective currencies, with the option to settle either USDC or fiat currency into a connected traditional bank account.
The main use case for Circle’s Payments service is improving global payments processing and the existing financial system, by allowing Circle users to seamlessly interact with stablecoins. The new service enables users to accept payments from bank wires, ACH transfers, credit and debit cards, as well as Silvergate Network Exchange (SEN).
Aside from enabling international payments, Circle Payments also provides users with an on-ramp to the decentralized finance market. The platform’s native stablecoin can be transferred to any USDC wallet on exchanges or DeFi apps, allowing users to interact with crypto capital markets.