As Bitcoin (BTC), and other digital assets continue their mainstream rise, crypto payments are growing in popularity. Both crypto owners and non-crypto holders are now interested in using cryptocurrency for payment.
Recent data shows that 93% of crypto users would be open to buying crypto. Further, 59% of those who do not own crypto expressed interest in purchasing it in the future.
It shouldn’t surprise, then that major payment companies like Mastercard are increasing their efforts to support cryptocurrency payments. Twitter and other social media giants like Twitter are also trying to make cryptocurrency payments possible through tipping.
Verifone launches crypto payments
To ensure widespread adoption of crypto payments, it is important to note that both online merchants as well as physical retailers must accept cryptocurrency payments. Fundera’s findings show that only 2,300 US businesses accepted Bitcoin payments by 2020.
Verifone, one of the most important point-of-sale companies in the world, announced today that BitPay’s blockchain payment technology will allow cryptocurrency transactions.
Mike Pulli, Verifone CEO, stated to Cointelegraph that merchants who use Verifone’s eCommerce Cloud Services platforms and in-stores in the United States by the end this year will be able accept cryptocurrency payments. Pulli said that Verifone is looking for alternative payment methods and will now accept crypto transactions because of the rising interest in cryptocurrency.
We believe that crypto on our terminals will offer more choices and opportunities to consumers. This is exactly what Verifone wants to achieve. This allows for a new currency to be seen on terminals, and we are excited about this trend.
Pulli could not reveal the names of online and offline merchants that will accept crypto payments. However, the company has a large reach and this will likely impact crypto payment adoption. This is a good example of Verifone’s 36 million point-of sale (POS) devices. It has processed more than 10 billion transactions and generated over $350 billion annually.
Cointelegraph was told by Stephen Pair, BitPay’s CEO, that BitPay allows merchants to process cryptocurrency transactions regularly, but Verifone is the largest partnership to date. “Verifone customers want to receive crypto payments,” he said. As millions of people have crypto wallets on their smartphones, this has been a trend.
To illustrate Pair’s point Jeremy Belostock, Verifone’s head of alternative payment options, told Cointelegraph that Verifone is experiencing a significant shift in consumer behavior because of the COVID-19 pandemic. Belostock stated that mobile wallets are being trusted by consumers more than ever, and they are seen as easy and quick payment options.
“There’s a shift in the way consumers use their credit cards to trust mobile apps that they can leverage to spend. This market is being tapped by us to make crypto mainstream.
It’s as easy as PayPal or Venmo, but crypto transactions are much more complicated
Belostock explained that Verifone’s advanced payment engine, which is designed to support crypto transactions, functions exactly the same way as terminals that accept Venmo and PayPal payments. Only the difference is that physical and online merchants can now accept Bitcoin, Ethereum and Dogecoin(ETH), Bitcoin Cash/BCH), Wrapped Bitcoin and Litecoins (LTC), as well as five USD-pegged stablecoins Gemini Dollar (GUSD), USD Coin and Pax Dollars (USDP), Maker AAO (DAI), Binance USD (BUSD), and USD Coin (USDC).
The solution will also support major wallets such as Blockchain.com, Metamask, BRD and Metamask. Belostock also mentioned that consumers will be able to pay with crypto using Verifone devices in a similar way as they would with a credit card.
“When a customer goes to pay in a physical shop, they will see the amount due. The screen will also show them the various options for choosing a crypto wallet. A QR-code will be displayed and they will select a wallet. The QR-code will be scanned from the blockchain wallet. They can then choose the cryptocurrency to pay with.
Pulli explained to merchants that accepting crypto payments via Verifone was the same as accepting any other form of tender. She also noted that there is no additional risk. “All that is required from our merchants since they are connected with our cloud platform is a software upgrade. Merchants will not see the crypto sent by consumers, even though they are using their wallets to send it.
This is an important point. Belostock stated that many merchants at Verifone have expressed concerns about crypto’s volatility. He said, “The big question is whether there is any risk involved.” Verifone’s merchants have to accept the U.S. Dollar, in contrast to other solutions, which allow merchants to choose whether or not they accept crypto once transactions are settled. Belostock stated that this is due to the refund aspect but also protects against volatility. Belostock explained that consumers will receive their crypto back if they are eligible for a refund. This is in addition to the original amount they purchased.
Is mainstream adoption possible?
Although crypto payments are clearly on the rise, there are still some issues that could hinder mainstream adoption in the United States.
The People’s Bank of China (PBoC) published guidelines on Sept. 24 to curb crypto activity in China. These measures are intended to “cut off payment channels and dispose of relevant websites, mobile applications, in accordance with law.”
While this could impact crypto’s reach and appeal, BitPay’s chief market officer Bill Bielke told Cointelegraph it was too early to know what China’s actions may have globally. “We see positive growth with the Verifone today in the U.S.A as another way for merchants and consumers to accept Bitcoin and 10 additional cryptos as well as for those who have crypto and want to spend.”
Related: Adapt or Die: Crypto firms partner with payment giants to ensure security
Both merchants and consumers could be facing a variety of problems when it comes time to spend cryptocurrency. U.S.-based crypto users are particularly concerned about accounting issues. Pair said that there will not be any tax consequences if crypto is converted to stable coins that can then be used on Verifone devices. Pair also mentioned that TaxBit, a crypto conversion software company, allows users to report their gains and losses right from their wallets.
Accessibility could pose a problem for both consumers and merchants, since some crypto payment solutions require that purchases be made take place in multiple steps. Belostock, for example, mentioned Verifone’s experience with solutions that require crypto to be transferred from multiple wallets before it can be converted into a gift card. He acknowledged that this is possible, but he said that Verifone’s BitPay product should be easy to use.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.