DoorDash Partners with Stripe-Backed Tempo to Introduce Stablecoin Payments

DoorDash, along with several fintech companies, is integrating stablecoins into their payment systems using Tempo, a blockchain platform backed by Stripe, marking a significant step towards the adoption of blockchain-based financial infrastructure. Tempo, a payments-focused blockchain developed by Stripe and Paradigm, announced that companies such as DoorDash, Stripe, Coastal Bank, and ARQ are now using or preparing to use stablecoin-based payment rails. DoorDash, operating in over 40 countries with nearly $75 billion in sales for local merchants last year, is working with Tempo to introduce stablecoin-powered payouts for merchants, initially focusing on cross-border transactions where settlement speed and cost are crucial. According to DoorDash co-founder Andy Fang, stablecoins have the potential to transform financial infrastructure. While the exact timeline for the implementation of stablecoin payments at DoorDash has not been disclosed, Stripe is utilizing Tempo as a core component for its money movement products, enabling businesses to send, receive, and hold stablecoins alongside traditional currencies. The goal is to make global payments fast, cheap, and borderless, as stated by Neetika Bansal, Stripe's head of Connect and money management. Stablecoins, a $300 billion crypto asset class with prices tied to fiat currencies, offer a cheaper and faster alternative to traditional banking rails for cross-border transactions. As stablecoins and blockchain rails become increasingly integral to global money flows, Stripe, a global payments firm processing nearly $2 trillion in annual payments, has made blockchain and stablecoins central to its ambitions. The company has acquired stablecoin infrastructure firm Bridge for $1.1 billion and crypto wallet provider Privy, and has developed a payments-focused blockchain called Tempo in partnership with crypto investment firm Paradigm. Tempo, which went live last month with infrastructure partners like Mastercard, UBS, Klarna, and Visa, is designed specifically for payment workloads, featuring sub-second settlement, fixed fees, and private transaction channels aimed at enterprise users. To support companies in adopting this technology, Tempo is launching a Stablecoin Advisory service to provide hands-on support for firms looking to transition their payment flows to blockchain.