Full guide on stablecoins as a payment option

Stablecoins combine the best of the two worlds. They are efficient thanks to blockchain technology and are not subject to massive fluctuations as fiat currencies. The special set of features offered by stablecoins can be particularly useful to companies. Businesses are often afraid of embracing innovation, and in the case of cryptocurrencies, their fear stems from digital coins’ unpredictable behavior. Stablecoins resolve this issue and thus become an excellent choice for companies looking to claim their share of the crypto market. NOWPayments simplifies the integration of a stablecoin payment gateway for businesses.

Stablecoins as a payment option

Key points:

What are stablecoins?

Stablecoins are similar to fiat currencies, but they do have a little twist. Essentially, every stablecoin is a cryptocurrency, the value of which is pegged to that of a fiat currency. The absolute majority of stablecoins are tied to mainstream currencies such as the US dollar and euro. Basically, they are backed by actual reserves of fiat currencies, commercial papers, bonds, or other cryptocurrencies. At the same time, there are stablecoins which are decentralized and thus purely algorithmic. The biggest stablecoins, including BUSD and Tether, are backed by reserves.

The core idea behind stablecoins is the desire to address the ever-present volatility of cryptocurrencies. It is not uncommon to see Bitcoin’s value jumping up and down several times a day. Such fluctuations do not sit well with those investors who wish to keep the size of their crypto holdings intact. As a result, they use stablecoins which allow them to escape market volatility.

Pros and cons of stablecoins payments


Safe store of value

Safe Store of Value
Image: BullionStar

As mentioned above, stablecoins are largely volatility-proof. This is why businesses that, due to crypto prices’ fluctuations, are fearful of integrating crypto payments can opt for stablecoins as a safe store of value option. Basically, by getting stablecoin payments, businesses will be able to avoid losing a share of their crypto holdings because of the market volatility. Similarly, some customers may also prefer paying in stablecoins due to the same reason.


One of the coolest features of stablecoins which they share with the rest of crypto assets, is the borderless nature. Basically, stablecoin transactions are not bound by strict jurisdictional limitations. As a result, stablecoin transactions are extremely fast. Businesses that want to open themselves to a global market can do it by deploying stablecoin payments. Moreover, in order to make payments in stablecoins, one does not need to undergo KYC procedures.


Image: DBS Bank

Stablecoin transactions also do not require businesses to spend fortunes on fees. The traditional services that process payments for businesses tend to charge their clients outrageous fees. In the case of stablecoins are simply not an issue. Stablecoin transaction fees vary, but on average, they cost less than a dollar. This is why stablecoin payments can provide businesses with a giant competitive advantage of inexpensive transactions.


Possible lack of transparency

Lack of transparency
Image: The Canberra Times

At the same time, there are certain problems inherent to stablecoins. For instance, those stablecoins which claim to be fully collateralized may fail to provide enough evidence of their reserves. In order to prove that the stablecoin is fully backed, the team behind it needs to conduct an audit. Yet, there also might be issues with trust for the alleged independent audit. So, before deploying stablecoin payments, companies need to thoroughly investigate the asset they plan on using.

Low return on investment

Another disadvantage of stablecoins surprisingly stems from their lack of volatility. Basically, many businesses accept cryptocurrencies as a way to increase their crypto holdings which they use as an investment tool. Basically, some companies sell their crypto received through payments when the market reaches another peak. This strategy is pretty much impossible with stablecoins, especially if they are pegged to fiat currencies. Of course, there are stablecoins which are tied to other cryptocurrencies, but they are rare and not as popular.

Best stablecoins for payments


Tether payments

Tether is one of the most popular stablecoins on the market, whose ticker symbol is USDT. It was launched in 2014 and since then has been demonstrating stable performance. This stablecoin’s value is pegged to the US dollar. Tether tokens are owned by thousands of people around the world, and businesses can accept them as payment when using NOWPayments.


Dai payments

Dai is another stablecoin which is pegged to the US dollar. The coin’s market capitalization is more than one billion dollars which makes it one of the largest stablecoins. Dai is deployed on the Ethereum network, which contributes to the security of its infrastructure. Dai is also available for accepting through NOWPayments’ tools.


BUSD Payments

BUSD is the official stablecoin of the major crypto exchange Binance. A significant aspect of BUSD is that it was approved by the New York State Department of Financial Services. Binance states that BUSD is pegged 1-to-1 to the US dollar. BUSD is once again one of the payment options offered by NOWPayments.


USDC Payments

USDC, also known as USD Coin, is a coin which was issued by CENTRE in collaboration with Circle and Coinbase. USDC is subject to audits from US financial institutions. USDC is also deployed on the Ethereum blockchain and can be accepted as payment by NOWPayments’ clients.


TUSD Payments

TrueUSD or TUSD is an Ethereum-based stablecoin which is available on dozens of exchanges. TrueUSD is an independently-verified asset that utilizes banks and escrow accounts to reduce risk and prevent fraud. NOWPayments helps businesses to accept TUSD payments.

How to accept stablecoins?

In order to start accepting stablecoins, you need to follow these steps:

  1. First of all, you will need to create an account on NOWPayments’ official website here.
  2. Next, you will need to provide your stablecoin crypto address.
  3. Then, you will have to generate your API key.
  4. After you complete these steps, you will be able to choose your tool for accepting stablecoin payments. Check out the list of the available options here.


A stablecoin payment gateway provides businesses with many advantages of both crypto and conventional currencies. NOWPayments assists businesses in accepting stablecoin payments.