What is ERC-20?

ERC-20 (Ethereum Request for Comments 20) is the universal technical standard used for creating and issuing smart contracts on the Ethereum blockchain. It dictates a specific set of rules that Ethereum-based tokens must follow.

For payment processors, supporting ERC-20 is fundamental because it is the most widely adopted standard for decentralized assets, including the majority of Tether (USDT) and USD Coin (USDC) liquidity. While ERC-20 offers deep liquidity and high security, transactions require ETH for "gas" fees, which can sometimes be expensive during network congestion.