The Commerce Payments Protocol, developed by Shopify and Coinbase, has surpassed $42 million in net settled payment volume on Base, demonstrating growing adoption of stablecoin infrastructure for everyday online purchases.
As of October 2, the protocol had recorded more than 448,000 payments and approximately $42.1 million in net settled volume, according to data from the SeaLaunch dashboard on Dune Analytics. The figures represent activity across the protocol rather than transactions exclusively from Shopify stores.
How the Protocol Works
Developed jointly by Shopify and Coinbase, the protocol enables eligible merchants to accept USDC through Shopify Payments while receiving payouts in local currency through their existing arrangements. Customers can pay using supported crypto wallets without holding ETH for network fees, as Coinbase Payments sponsors the gas costs.
Unlike standard cryptocurrency transfers, the Commerce Payments Protocol introduces a payment authorization and capture system similar to conventional card transactions. Smart contracts place customers' authorized USDC payments into escrow until merchants confirm orders. Once confirmed, merchants capture the payment to release the funds from escrow. Orders can be canceled before capture or refunded afterward.
Buyers approve payment terms in advance, and the smart contract prevents operators from changing authorized payment details, including the recipient and maximum payment amount. Customers can also reclaim uncaptured funds after an authorization expires.
Operational Benefits
Merchants receive no cryptocurrency balance management requirements, as payouts arrive in local currencies. Customers pay no gas fees when completing eligible USDC purchases, although standard merchant processing fees and eligibility requirements apply.
The system supports six core payment operations: authorization, capture, direct charges, cancellations, customer reclamation, and refunds. Merchants can offer stablecoin payments alongside existing payment methods rather than operating separate crypto checkout systems.
The protocol runs on Base, Coinbase's Ethereum layer 2 network, and is open source, allowing other commerce platforms and payment providers to integrate its infrastructure.
