Last week Bitcoin was classified as a property by the IRS for tax regulations and today San Francisco-based mobile point-of-sale system provider Square has announced that merchants will be able to sell goods and services for bitcoin via its Square Market, an online website, reported on Coin Desk.
A retailer can list an item on the site for marketplace and pay 2.75% currently for each credit card sale. A fee for bitcoin transaction has not been listed on its site for comparison.
The company on its official blog released this statement today on its Bitcoin announcement:
‘Making commerce easy means creating easy ways to exchange value for everything from a massage to a new calculator watch. In that spirit, starting today, buyers can purchase goods and services on Square Market with bitcoin.’
Square has taken over the merchant processing world since its start in 2008 with billions of dollars processed annually to a high of $20 billion in 2013. Its point of sale system expanded from the ‘square’ attachment onto a mobile smartphone to an iPad last year which added to its increased revenue and popularity.
The company moving forward with its popular reception from merchants has filed an initial public offering (IPO) and it is expected to have sales volume in merchant fees of $1 billion in 2014. Square Market has value of $5 billion going into this IPO.
Square has been labeled a stop on the way to higher technology which makes it fit with bitcoin. Currently in the US when you swipe your card into a terminal it continues onto a computer center for processing. This will be changed this year to meet next year’s requirement from Visa-MasterCard and American Express to process through an EMV (Euro-MasterCard-Visa) encrypted terminal to meet the new embedded chips in credit/debit cards.
Square is a step ahead of EMV as it has been using a swipe of the card into a 'Square' attachment on a mobile phone since 2008 which provided immediate encryption. The details are listed in detail on the Square Market website.
Bitcoin is a likely candidate to meet the needs of anonymity and Internet theft for the Square Market shopper online. Square lists on its website ‘The Corner’ for Square Market blog instructions to process bitcoin transactions.
•Generate a new bitcoin address
•Submit their payment to the network (buyers with a mobile wallet simply open and scan the QR code, while hosted wallet users will receive instructions for entering the information)
•Have the payment validated by Square, which will detect that its receiving address was funded
•Advance to the confirmation page.
How it will handle chargebacks has not been listed on the company website. Because of Square Market's standing in the payment processing industry it will lend higher acceptance to Bitcoin and increase its position in acceptance for transactions.
To learn more about this topic view the list below in Author’s suggestions and the video atop this article on merchant processor Balanced and acceptance of Bitcoin.
Twitter Victoria Wagner@victoriaross888