Docs / USDT or USDC
USDT or USDC? How a merchant should choose
Both are dollar-pegged stablecoins, but they are available on different chains and neither is risk free.
The short version: USDT and USDC are both stablecoins pegged to the US dollar. On PayRamHost, USDC can be received on Ethereum, Base and Polygon, and USDT on Ethereum and Polygon (on Base the stablecoin is USDC). For the simplest start, accept only USDC on Base. If your customers prefer USDT, add USDT on Polygon or Ethereum.
1. Where each can be received on PayRam
| Coin | Chains officially supported | Chains PayRamHost offers today |
|---|---|---|
| USDC (USD Coin) | Ethereum, Base, Polygon | Ethereum, Base, Polygon |
| USDT (Tether) | Ethereum, Tron, Polygon | Ethereum, Polygon (Tron is planned) |
What you can actually use is shown in your merchant dashboard. The full list of networks and coins is in which blockchains and coins PayRam supports.
2. Four factors in the choice
Factor one: chain and fees
The same coin costs different amounts in gas to move and sweep on different chains. Gas on Base and Polygon is usually lower than on Ethereum mainnet, which suits small payments. USDC is available on Base, while USDT means choosing Ethereum or Polygon.
Factor two: customer habits
Customers in different regions have different habits. Some mostly hold USDT and others use USDC more often. Support first what your customers mostly hold. If you are unsure, enable both and let customers choose.
Factor three: whether you enable the card channel
Through the card channel you mainly receive USDC and ETH, and only some providers also support USDT. If you plan to let customers pay by card, USDC is close to a must. See the card-to-crypto channel explained.
Factor four: what you do next
What will you do with the funds once received? If you will pay suppliers or staff, or convert to fiat, look at which coin and chain the other party and your usual exchange support. The same coin on a different chain must be deposited to an exchange on the right network.
3. Our suggestion
- To start: enable only Base and accept only USDC. Gas is low, it works with the card channel, and it is the simplest setup.
- When customers ask for USDT: add Polygon or Ethereum and enable USDT.
- When both are enabled: customers pick the coin and chain on the payment page. If you want to restrict it, set
currencyandnetworkwhen creating the payment. - Test every chain you enable with 1 US dollar first. See the PayRam tutorial.
This is general advice. Decide according to your own customers and business.
4. Risks you should not ignore
- Depeg risk: a stablecoin can lose its peg to one US dollar. Different stablecoins have each slipped from their peg to some degree in the past, and our risk disclosure says so.
- Do not put everything in one coin, or convert everything at once: handle the stablecoins you receive in batches according to your cash-flow needs, rather than concentrating all your funds in a single coin.
- The wrong network loses money: the same coin on a different chain is a different asset, and a transfer on the wrong network usually cannot be recovered.
- Issuer risk: a stablecoin depends on its issuer's reserves and regulatory position. Do your own research before deciding how much to hold.
This article is not investment advice.
5. FAQ
Can I accept USDT and USDC at the same time?
Yes. As long as both coins are available on the networks you enabled, customers can choose on the payment page.
Amounts are priced in dollars. Is the amount the same if a customer pays in USDT or USDC?
The amount you set when creating a payment is in US dollars, and the payment page converts it for the chosen coin. Both are pegged to one dollar, so the amount due is essentially the same. The payment page shows the exact figure.
What about PYUSD and cbBTC?
PayRam officially supports them too, for example PYUSD and cbBTC on Ethereum. Most merchants are fine with USDC and USDT, and other coins can be enabled as needed.
Related reading
- Supported networks and coins: Every network and coin PayRam supports: paying directly in crypto, paying from Solana via a bridge, and paying by card, with what the merchant receives in each case, plus what PayRamHost currently offers.
- PayRam tutorial: A PayRam tutorial for merchants: what PayRam is, self-hosting versus a hosted service, how a payment flows, choosing a chain and coin, five steps to your first USDT / USDC payment, and how to let customers pay by card.
- Card-to-crypto channel: How PayRam's card-to-crypto channel works: customers pay by card, Apple Pay, Google Pay or bank transfer, a third-party provider converts it to stablecoins and the merchant receives them directly. Which chain each provider settles on, and who completes KYC.