With Bitcoin (Bitcoin) And other digital assets continue to become mainstream. This has become a situation for cryptocurrency holders and non-cryptocurrency owners who are mainly interested in the concept of using cryptocurrency for payment.
Recent data found that 93% of encrypted users surveyed would Consider buying with cryptocurrencyThe report further shows that 59% of consumers who do not hold cryptocurrency are interested in using it to make purchases in the future.
Therefore, it is not surprising that major payment providers like Mastercard have been stepping up efforts to support the development of encrypted payments.In addition, social media giants such as Twitter are also Committed to enabling cryptocurrency payments Through mechanisms such as tipping.
Verifone launches encrypted payment
It is important to point out that online merchants and brick-and-mortar retailers must start accepting encrypted payments to ensure mainstream adoption.According to Fundera’s survey results, there are only about 2,300 companies in the United States accepted Bitcoin payments at the end of 2020.
To advance this, Verifone, one of the world’s largest point-of-sale providers, announced today that the expansion of BitPay’s blockchain payment technology will make cryptocurrency transactions possible.
Verifone CEO Mike Pulli told Cointelegraph that by the end of this year, merchants using Verifone’s in-store and e-commerce cloud service platforms in the United States will be able to accept cryptocurrency payments. Pulli added that Verifone has been looking for alternative payment methods recently. Due to the growing interest in cryptocurrencies in the mainstream, it will now support crypto transactions:
“We believe that providing cryptocurrency on our terminal will provide consumers with more choices and opportunities. This is exactly the goal of Verifone. This opens up a currency that has never been seen on the terminal before. We hope to stand At the forefront of this trend.”
Although Pulli cannot disclose which online and brick-and-mortar merchants will begin to support encrypted payments, the company has a lot of influence and may therefore have an impact on the adoption of encrypted payments. From this perspective, Verifone operates 36 million point-of-sale or POS devices, processes more than 10 billion transactions, and generates more than 350 billion U.S. dollars in transaction volume each year.
BitPay CEO Stephen Pair told Cointelegraph that although BitPay Periodically enable merchants to process encrypted transactionsVerifone is by far the largest partner: “Verifone customers request encrypted payments. This has become a situation because today millions of encrypted users have blockchain wallets on their phones that they want to use.”
As far as Pair is concerned, Jeremy Belostock, head of alternative payment methods at Verifone, told Cointelegraph that the company is witnessing a major shift in consumer behavior due to the COVID-19 pandemic and other reasons. Specifically, Belostock pointed out that consumers trust mobile wallets more than ever, as a quick and easy way to pay:
“It has shifted from owning a credit card to having a trusted mobile application that consumers want to use for their consumption. We are using this market to make cryptocurrency mainstream.”
As simple as using Venmo or PayPal, but suitable for encrypted transactions
Belostock explained that Verifone’s advanced payment engine is designed to support encrypted transactions, and its functions are the same as terminals that accept Venmo or PayPal payments. The only difference is that both physical and online merchants can now accept Bitcoin and Ethereum (Ethereum), Dogecoin (dog), Bitcoin Cash (Bitcoin cash), Parcel Bitcoin (WBTC), Litecoin (LTC), and five U.S. dollar-pegged stablecoins such as Gemini Dollar (GUSD), USD Coin (USDC), Pax Dollar (USDP), Maker DAO (DAI) and Binance USD (BUSD).
In addition, the solution will initially support major wallets, including Blockchain.com, BRD, Metamask, and BitPay. Belostock further mentioned that when using cryptocurrency payments through a Verifone device, consumers will go through a simple process similar to using a credit card:
“When consumers go to a physical store to pay, they will see the amount due, and the screen will provide them with different choices of which crypto wallet to use. They will choose a wallet, and a QR code will surface. Then they will directly Scan the QR code from their blockchain wallet and choose the cryptocurrency they want to pay.”
From a merchant’s point of view, Pulli explained that accepting encrypted payments through Verifone is the same as accepting another form of bidding, noting that there are no additional risks involved: “All our merchants need are software updates because they are connected to us. Cloud platform. Even if consumers send cryptocurrency from their wallets, merchants can only see their local currency.”
This is an important point because Belostock shared that many Verifone merchants have expressed concerns about the volatility of cryptocurrencies. “The biggest question here is whether there are any risks,” he said.However, unlike other solutions that allow merchants to decide Whether to accept encryption After the transaction is settled, Verifone’s merchants must accept U.S. dollars. “This is mainly because of refunds, but it can also prevent fluctuations,” Belostok said. He added that in the case of a refund, the consumer will receive the original purchase amount of cryptocurrency.
Will mainstream adoption follow?
Although it is clear that encrypted payments are on the rise, there are still some concerns that may hinder mainstream adoption in the United States.
For example, on September 24, the People’s Bank of China (PBoC) issued guidelines Combating crypto activities All over the country. These measures are aimed at “cutting off payment channels and disposing of relevant websites and mobile applications in accordance with the law.”
Although this may affect the coverage of cryptocurrencies, BitPay’s Chief Marketing Officer Bill Birk told Cointelegraph that it’s too early to judge how China’s measures might affect the United States or the world: “We did see Verifone’s announcement today. The positive growth and huge potential of the United States as a merchant accepting Bitcoin and 10 other cryptocurrencies, and another way for consumers who own cryptocurrencies and want to consume them.”
related: Adapt or die: payment giants work with crypto companies to ensure security
In addition to China’s recent encryption ban, both consumers and businesses may face many challenges when using cryptocurrencies. For example, accounting challenges are often a major concern for American users. However, Pair mentioned that if users convert cryptocurrencies into stablecoins that can be used on Verifone devices, there will be no tax implications. He further pointed out that companies that provide encryption conversion software like TaxBit are helping users report gains and losses directly from their wallets.
In addition, accessibility may also pose challenges for merchants and consumers, as some encrypted payment solutions require multiple steps to make a purchase. For example, Belostock mentioned that Verifone has seen a competitive solution where encryption must be transferred from multiple wallets and then converted into gift cards for payment. Although it may be so, he said that the products built by Verifone and BitPay should be simple and intuitive.