Crypto companies FTX and FTX US switch to Stripe for payments and identity verification
By Matt Collins Article may include affiliate links
Stripe has signed a deal with FTX, one of the world’s leading crypto companies, to build a seamless onboarding and identity verification flow for users joining the exchange, and to power payments for users adding funds to their FTX account.
FTX is one of the fastest-growing technology companies in the world, operating an exchange that lets consumers buy, sell, and trade a variety of digital assets. As of January 2022, investors were trading an average of $14 billion worth of assets on FTX every day.
The deal also includes FTX US, a U.S. regulated affiliate.
“We want FTX to become a trusted mainstream brand,” said Tristan Yver, head of strategy at FTX, in a statement. “We’ve partnered with Stripe to help us transform what could be unintuitive crypto experiences into ones that exceed consumer expectations.”
FTX has chosen Stripe to enable a seamless payment experience for users who want to purchase cryptocurrencies with debit cards and Automated Clearing House transactions directly from their bank.
FTX built its new payments setup with Stripe in just days. “Stripe’s developer documents are a pleasant surprise compared to what we’ve worked with in the past,” said Yver.
FTX is also using Stripe Radar to mitigate fraud risk. Fully integrated with the rest of Stripe, Radar uses machine learning models and signals including customer details and billing information to distinguish fraudsters from legitimate customers. This enables FTX to accept as many legitimate transactions as possible, generating additional revenue with no extra effort.
“The optimizations we made in our payments setup with Stripe deliver the smooth on-ramp experience FTX’s growing customer base demands. We’re able to multiply revenue by making it easier than ever for people to invest in crypto,” said Yver.
FTX has also chosen Stripe Identity to build an onboarding and identity verification flow, so new crypto investors can easily prove they are who they say they are.
Using Stripe’s machine learning model — built on the same technology Stripe uses to verify millions of users globally—FTX has significantly reduced the number of rejections of new investors. FTX’s previous identity verification process often required manual reviews, which could take up to a week; the new flow enables real-time identity verification.
“We’ve recently overhauled our user onboarding process, and we’ve partnered with Stripe to bring their automated ID verification system to FTX,” tweeted FTX US president, Brett Harrison, after completing the implementation. “We’re seeing greatly increased speed of KYC processing, higher rates of automated approvals, and a smoother UX for our customers.”
“Stripe is working with many of the most exciting projects in Web3 and supporting the world’s leading crypto brands. FTX is a great example of this,” said Will Gaybrick, chief product officer at Stripe in the statement.