Samsung teams with Stripe to bring USDC to 82M phones

Samsung Wallet now supports direct purchases of USDC, the dollar-pegged stablecoin, for eligible users in the United States. The feature, announced in October, is now live and allows Galaxy smartphone owners to convert their dollars into the digital asset without leaving the Samsung ecosystem.

The rollout targets a vast user base, with Samsung estimating that 82 million of its US devices are compatible with the new Stablecoin Account. To access the service, users must have an Android 13 or later device with built-in fingerprint authentication enabled.

Opening the account is free, but funding it, sending USDC, and withdrawing funds back to a bank account or debit card incur varying fees. These costs are displayed to the user before any transaction is confirmed, ensuring transparency.

How the service works

Users can top up their Stablecoin Account using a linked bank account, a credit card, or a debit card. The funds are then converted into USDC, which is managed by custodian Bastion on behalf of Samsung. USDC is a digital asset issued by Circle that is designed to maintain a 1:1 peg with the US dollar.

The process is handled through Stripe's Crypto Onramp, which manages identity verification, compliance, and fraud prevention for the purchases. Stripe processes the funding from the user's bank or card, while Bastion manages the custody of the USDC.

Fees and limitations

There is no fee for opening the account, but the costs for adding money, sending USDC, and cashing out depend on the chosen method and destination. For example, funding via a credit card may have different processing fees than a bank transfer.

Users must be at least 18 years old and reside in a US jurisdiction where the service is available. New York residents are currently excluded from the service. Additionally, each person can hold only one Stablecoin Account in their own name.

The account is not a bank account, and Samsung warns that USDC balances and any rewards lack FDIC, NCUA, and SIPC protections. This means that if the value of USDC were to change or if the custodian were to face issues, users would not have the same level of deposit insurance as they would with a traditional bank.

Next steps and risks

Users can also receive USDC from an external wallet on a supported network or add funds through Coinbase. However, Samsung cautions that sending an unsupported asset or using the wrong network can result in the permanent loss of funds.

While Samsung does not charge for USDC transfers to external wallets, recipient providers may impose their own fees. The service also supports international remittances, but the fees and processing times for these transfers can vary by destination and amount.

The integration of USDC into Samsung Wallet represents a significant step for mainstream adoption of stablecoins. By leveraging the existing user base of Samsung devices and the security of Stripe and Coinbase, the service aims to make it easier for everyday users to access and use digital assets.